Regulation Z(redirected from Reg Z)
Under Regulation Z, a Federal Reserve Board rule covering provisions of the Consumer Credit Protection Act of 1968, lenders have to tell you certain terms of the credit they're offering, in writing, before you borrow.
Also known as the Truth in Lending Act, the regulation stipulates that lenders must disclose the true cost of loans. For example, they must make the interest rate, annual percentage rate (APR), and other terms of the loan simple to understand.
Regulation Z establishes uniform methods for calculating the cost of credit, disclosing credit terms, and resolving errors on certain types of credit accounts.
A regulation issued by the Board of Governors of the Federal Reserve System in order to assist in implementation of the Truth in Lending Act.It requires certain disclosures regarding the cost of credit and rights of rescission (discussed at length under rescind). Additional disclosures must be made for reverse mortgages,discussed within that topic.The disclosure box appearing on all consumer promissory notes is called the Reg Z Box (see the diagram).