What action should be taken if there is doubt about disclosures?

The correct action when there is doubt about disclosures under Regulation Z is to provide the required Reg Z disclosures. This ensures compliance with the law and protects both the lender and the borrower. Regulation Z was established to promote informed use of credit by requiring clear disclosure of key terms and costs associated with borrowing. By erring on the side of caution and providing the necessary disclosures, it helps to inform the consumer accurately about the credit terms, preventing potential violations of the law that could arise from inadequate or omitted information.

Providing Reg Z disclosures reflects a commitment to transparency and helps in maintaining the integrity of lending practices. It is crucial to ensure that consumers understand the terms of their loans, which is the primary goal of Regulation Z. Therefore, when in doubt, taking the safe route of providing the disclosures not only fulfills legal obligations but also contributes to good business practices and customer trust.