TILA Reg Z Lending Regulation
United States
1968
Lending
Consumer Protection
Overview
The Truth in Lending Act (TILA), implemented through Regulation Z by the Consumer Financial Protection Bureau (CFPB), was enacted in 1968 to promote informed consumer borrowing and ensure transparent credit terms. It mandates standardized disclosures of loan costs, interest rates, and repayment terms to help consumers compare financial products.The regulation applies to banks, mortgage lenders, credit card issuers, auto finance companies, Buy Now Pay Later (BNPL) providers, and other non-bank lenders that extend credit to individuals for personal, family, or household use.
Key Obligations
- Disclose Annual Percentage Rate (APR), finance charges, and total payments clearly
- Provide loan estimates and closing disclosures for mortgages under TRID rules
- Follow special protections for high-cost and higher-priced mortgage loans
- Enforce timing rules for credit card billing, interest rate changes, and late fees
- Require written consent for certain changes in loan terms
- Prohibit unfair or deceptive lending practices, including negative amortization
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