Which regulation specifies the requirements lenders must follow under the Truth-in-Lending Act?

The Truth-in-Lending Act (TILA) is designed to promote informed use of consumer credit by requiring disclosures about its terms and cost. The regulation that specifically outlines the requirements that lenders must adhere to under TILA is Regulation Z. This regulation includes important provisions such as the disclosure of interest rates, finance charges, the annual percentage rate (APR), and other key loan terms that ensure consumers understand the costs associated with borrowing.

Regulation Y pertains to the provisions applicable to certain financial institutions and their operations related to the Bank Holding Company Act, while Regulation X focuses on the Real Estate Settlement Procedures Act (RESPA) and does not cover TILA requirements. Regulation V deals with the Fair Credit Reporting Act, which addresses issues related to consumer credit reporting, rather than the requirements set forth under TILA. Therefore, Regulation Z is crucial as it enforces the transparency and fairness intended by the Truth-in-Lending Act, ensuring that borrowers are adequately informed before entering into a credit agreement.