What must creditors disclose under Regulation Z?

Under Regulation Z, creditors are required to disclose specific terms related to credit transactions to ensure that consumers can make informed decisions. Among these terms are the Annual Percentage Rate (APR), which reflects the true cost of borrowing on a per-year basis; finance charges, which include any fees or costs associated with obtaining credit; and the total amount financed, which is the loan principal plus any initial fees or charges the borrower is required to pay. These disclosures are crucial as they help consumers understand the overall cost of credit, allowing for better comparisons between different credit options available in the market.

The other options focus on different aspects of credit or financial services that do not satisfy the specific disclosure requirements outlined in Regulation Z. For instance, the financial health of a company or income requirements for borrowers, while relevant in various contexts, do not fall within the mandatory disclosures of credit terms that consumers need to understand their loan agreements. Additionally, while late payment penalties and fees are important for borrowers to know, they are generally part of specific terms and conditions rather than the core disclosures Regulation Z emphasizes.