What is NOT a requirement for a loan to be considered consumer credit under Reg Z?

A loan is considered consumer credit under Regulation Z if it meets specific criteria designed to protect consumers. Among these criteria, the nature of the borrower is significant. The correct answer indicates that it is not a requirement for the borrower to be an individual consumer. Instead, Regulation Z specifically applies to transactions involving individuals borrowing for personal, family, or household purposes.

When a borrower is a corporation, it is typically engaging in business activities, which do not fall under the protective scope of Regulation Z, as the regulation aims to safeguard individual consumers rather than commercial entities.

The other elements mentioned in the choices contribute directly to the classification of a loan as consumer credit. Loans under $54,600, those intended for personal use, and those that include finance charges all align with the regulatory intent of protecting personal borrowers. Therefore, the lack of a requirement for the borrower to be a corporation underlines the focus of Regulation Z on individual consumer transactions.