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

FAQ

Related Regulations

ECOA Reg B Lending Compliance

FCRA Credit Reporting Regulation

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