How does Regulation Z define a "consumer"?

Regulation Z clearly defines a "consumer" as an individual who uses credit primarily for personal, family, or household purposes. This definition is crucial as it delineates the scope of protection offered under the Truth in Lending Act, which is designed to promote informed use of consumer credit by requiring disclosures about its terms and costs. The focus on personal, family, or household purposes reinforces that the regulations are aimed at protecting ordinary consumers in situations where they are financing personal needs rather than engaging in business transactions. Understanding this definition helps delineate the target audience for consumer credit protections and ensures that the regulations serve to empower individuals in managing their credit effectively. Other definitions provided do not align with the intent of the regulation, as they involve entities or purposes outside the personal consumer context.