What is Reg Z? (Regulation Z)

Reg Z

General Rule:

• Advertisements must be accurate and not misleading.
• All advertised rates and terms must be available to a substantial portion of consumers, not just select individuals.
• Any advertised rate must be the Annual Percentage Rate (APR) and presented prominently with equal-sized disclosures as other key terms.

Required Disclosures:

• For credit sales (loans), disclose:
  • APR in a prominent font (often larger than surrounding text)
  • Finance charges (total cost of credit)
  • Payment amount and frequency
  • Number of payments
  • Down payment amount (if applicable)
• For closed-end credit (e.g., car loans):
  • Disclose total loan amount
  • Total amount of payments
  • Example of a monthly payment for a given credit amount and APR