Which Regulation Letter governs the Truth in Lending Act (TILA)?

• A. Regulation P
• B. Regulation Z
• C. Regulation X
• D. Regulation B

Answer: (B)

Regulation Z implements the Truth in Lending Act by requiring clear disclosures about loan terms. It mandates what lenders must tell borrowers—such as the annual percentage rate, finance charges, payment schedule, and total payments—so consumers can compare offers and understand the cost of credit. This regulation covers a wide range of consumer credit, including mortgages, credit cards, and other loans, making the lending terms transparent. Other regulations govern different areas: Regulation X relates to real estate settlement procedures and disclosures, Regulation P deals with privacy notices under GLBA, and Regulation B enforces fair lending practices under ECOA. So the regulation that governs the Truth in Lending Act is Regulation Z.