What is the primary objective of Regulation Z?

The primary objective of Regulation Z is to regulate lending practices and ensure fairness for borrowers. This regulation was enacted as part of the Truth in Lending Act to provide consumers with clear and accurate information about the terms and costs associated with borrowing. By mandating that lenders disclose all relevant information, including interest rates, finance charges, and the total cost of the loan, Regulation Z aims to promote transparency and enable consumers to make informed decisions regarding credit.

This consumer protection is essential in creating a fair lending environment where borrowers understand their obligations and the terms of the loans they are entering into. By focusing on the clarity of information, Regulation Z helps prevent deceptive practices and allows for more equitable treatment of borrowers in the lending process.