What is the main purpose of Regulation Z?

The main purpose of Regulation Z is to help consumers compare credit terms and costs. This regulation implements the Truth in Lending Act (TILA), which was designed to promote informed use of consumer credit by requiring clear and standardized disclosure of key terms and costs of lending. By mandating that lenders provide comprehensive information about loan terms, interest rates, and total costs, Regulation Z allows consumers to make better-informed decisions when comparing credit options. The focus on transparency serves to protect consumers from deceptive lending practices and enables them to understand the financial implications of their choices.

While other regulations may address specific areas such as bank fees, foreign transactions, or suspicious activity tracking, Regulation Z is distinctly aimed at the clarity and comparison of credit products, underpinning its importance in consumer protection in financial services.