Which aspect of credit card terms must be disclosed to consumers?

The selected answer is correct because the Truth in Lending Act (Regulation Z) requires financial institutions to disclose key terms and conditions in a clear and conspicuous manner. Among these disclosures, applicable fees for late payments are explicitly required to inform consumers about potential charges they may incur if they fail to make timely payments. This transparency helps consumers understand the financial implications associated with credit card usage, allowing them to make informed decisions about their credit behaviors.

The other options, while they contain information relevant to credit card terms, do not meet the specific requirements outlined under Regulation Z. The total credit limit, for example, is crucial, but it may come with conditions or variable terms that are not always straightforward. Discounts associated with prompt payment can vary widely and are not universally applicable across all credit card issuers, making them a less critical disclosure requirement. Lastly, while details about personal data collection are important for privacy concerns, they fall outside the scope of credit terms and conditions that Regulation Z focuses on, which emphasizes financial terms rather than personal data practices.