Regulation Z (Truth in Lending): Important Details To Know

1. Introduction

Regulation Z has been designed to facilitate consumers to make informed decision making by providing them with greater and more timely information. It has been issued by the Bureau of Consumer Financial Protection for the implementation of the Truth in Lending Act (TILA) of 1968. It also implements specific provisions of the Real Estate Settlement Procedures Act, the Competitive Equality Banking Act of 1987, and the Financial Institutions Reform, Recovery, and Enforcement Act.

The rules, obligations, and requirements set forth by Regulation Z empower consumers to understand the credit terms offered to them. Additionally, creditors must respond to all user complaints while allowing consumers to cancel certain types of loans within specific periods.

Read on to learn more about the disclosure-related obligations of all creditors and the rights of consumers.

2. Who Needs to Comply with Regulation Z

a. Scope of the Regulations

Regulation Z applies to all businesses and individuals that offer or extend credit services unless they are specifically excluded under Section 1029 of the Consumer Financial Protection Act of 2010, title X of the Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203, 124 Stat. 1376.

Certain types of loans are not subject to Regulation Z, including federal student loans, loans for business, commercial, agricultural, or organizational use, loans above a certain amount, loans for public utility services, and securities or commodities offered by the Securities and Exchange Commission.

b. Conditions for Applicability

To be subject to the Regulations, four conditions must be met:

• The credit must be offered or extended to consumers.
• The offering or extension must be done on a regular basis.
• The credit must either have a finance charge associated with it or must be payable in more than four installments.
• The credit must be primarily intended for personal, family, or household purposes.

c. Credit Cards, Home-Equity Plan Applications and Higher Education Institutions

Certain provisions of Regulation Z are applicable in instances where a credit card is involved, especially when the credit card is intended for business purposes, even if the credit does not have a finance charge or is not payable in more than four installments.

Further, some requirements may be applicable to individuals or entities that provide applications for home-equity plans to consumers as well as institutions of higher education when it comes to certain aspects of credit and lending practices.

3. Definitions of Key Terms

a. Consumer

A cardholder or natural person to whom consumer credit is offered or extended. ​​the term also includes a natural person in whose principal dwelling a security interest is or will be retained or acquired, if that person's ownership interest in the dwelling is or will be subject to the security interest and a confirmed successor in interest.

b. Dwelling

A residential structure that contains one to four units, whether or not that structure is attached to real property. The term includes an individual condominium unit, cooperative unit, mobile home, and trailer, if it is used as a residence.

c. Person

A natural person or an organization, including a corporation, partnership, proprietorship, association, cooperative, estate, trust, or government unit.

d. Security Interest

An interest in property that secures the performance of a consumer credit obligation and that is recognized by State or Federal law. It does not include incidental interests such as interests in proceeds, accessions, additions, fixtures, insurance proceeds, premium rebates, or interests in after-acquired property.

e. Successor in interest

A person to whom an ownership interest in a dwelling securing a closed-end consumer credit transaction is transferred from a consumer.

f. Confirmed successor in interest

A successor in interest once a servicer has confirmed the successor in interest's identity and ownership interest in the dwelling.

g. Closed-end credit

This refers to any consumer credit other than "open-end credit," which is referred to as closed-end credit.

h. Consumer credit

This refers to credit offered or extended to a consumer primarily for personal, family, or household purposes.

i. Consummation

This refers to the time that a consumer becomes contractually obligated on a credit transaction.

j. Creditor

This refers to a person who regularly extends consumer credit that is subject to a finance charge or is payable by written agreement in more than four installments (not including a down payment), and to whom the obligation is initially payable, either on the face of the note or contract, or by agreement when there is no note or contract.

k. Open-end credit

This refers to a consumer credit extended by a creditor where (i) the creditor reasonably contemplates repeated transactions; (ii) the credit may impose a finance charge from time to time on an outstanding unpaid balance; and (iii)  the amount of credit that may be extended to the consumer during the term of the plan (up to any limit set by the creditor) is generally made available to the extent that any outstanding balance is repaid.

4. Open-End Credit Requirements & Obligations

A. General Disclosure Requirements

I. Forms of Disclosure

Creditors are required to provide disclosures clearly and conspicuously. Disclosures must be provided in writing, and the consumer must be able to keep a copy of them. Some specific disclosures do not need to be in written form. These exceptions include:

• Certain charges in open-end (not-home-secured that are not required to be disclosed by law) plans.
• Disclosures related to certain charges that are not required to be disclosed under the Regulations.
• Disclosures when a finance charge is imposed at the time of the transaction.

Certain disclosures do not need to be provided in a form that the consumer can retain. This include:

• Disclosures that need not be written.
• Disclosures for credit and charge card applications and solicitations.
• Home-equity disclosures.
• The alternative summary billing-rights statement.
• The credit and charge card renewal disclosures.
• The payment requirements as provided under the regulations.

II. Time of Disclosures

A. Account Opening

I. General Rule

The creditor must be able to furnish account-opening disclosures per the relevant requirements before the first transaction is made per the credit plan. These disclosures inform the consumer about the terms and conditions of the credit plan.

II. Charges in Open-End Plans (Not Home-Secured)

For open-end credit plans not associated with home-secured transactions, certain charges that do not need to be disclosed in accordance with Regulations can be disclosed after the account has been opened. However, this disclosure must be done in a way that ensures consumers are likely to notice these charges.

III. Telephone Purchases

When consumers initiate credit plans over the phone to purchase goods and simultaneously agree to establish an open-end credit plan with the merchant or a third-party creditor, the required disclosures should be provided as soon as reasonably possible after the first transaction. This provision hinges on specific conditions:

• Consumers purchasing goods by phone and agreeing to the credit plan.
• Merchants or third-party creditors permitting returns of financed goods and providing sufficient time for consumers to reject the credit plan and return goods without incurring costs.
• Disclosure to consumers regarding their right to reject the credit plan and return the goods as part of the offer to finance the purchase.

IV. Membership Fees

Generally, creditors are not permitted to charge any fees before providing consumers with account-opening disclosures. However, creditors have the option to collect membership fees, which can include application fees that are excluded from the finance charge, prior to delivering these disclosures.

This is permissible as long as consumers, upon receiving the disclosures, maintain the right to decline the credit plan without any obligation to pay these fees. If a consumer decides to reject the plan:

• the creditor must promptly refund any applicable membership fee, or
• take necessary actions to ensure that the consumer is not obligated to pay any fees or charges.

Creditors offering home equity plans are not subject to the aforementioned requirements.

V. Application Fees

A creditor may collect an application fee excludable from the finance charge before providing the consumer with the account-opening disclosure. However, in case the consumer rejects the plan after receiving the disclosure, the consumer must not be under any obligation to pay the application fee. If the consumer has already paid such a fee, it must be refunded.

B. Periodic Statements

The creditor must mail or deliver the periodic statements at the end of each billing cycle for every account with a debit or credit balance greater than $1 or when a finance charge has been imposed. However, a periodic statement need not be sent when:

• the account is considered uncollectible,
• delinquency collection proceedings are underway,
• the creditor has charged off the account in line with loan-loss provisions,
• providing the statement would violate federal law.

I. Credit Card Accounts under Open-end (not home-secured) Consumer Credit Plan

For credit card accounts under an open-end consumer credit plan (excluding home-secured plans), reasonable procedures must be in place to ensure that periodic statements are mailed or delivered at least 21 days before the payment due date as disclosed on the statement.

Additionally, card issuers must not treat a minimum periodic payment as late if received within 21 days after mailing the periodic statement.

II. Open-End Consumer Credit Plans

For accounts under open-end consumer credit plans, if a grace period is applicable, periodic statements must be mailed or delivered at least 21 days before the grace period expires, and no finance charges can be imposed if a payment that meets grace period terms is received within 21 days. If there's no grace period, periodic statements must be sent at least 14 days before the required minimum payment due date, and creditors cannot treat a payment as late if received within 14 days.

All such disclosures must reflect the terms of the legal obligation between the parties. If the credit plan involves more than one creditor, only one set of disclosures shall be given, and the creditors shall agree among themselves which creditor must comply with the requirements that this part imposes on any or all of them.

In cases where a credit plan involves multiple creditors:

• Only one set of disclosures is required.
• The creditors should agree on which one of them must comply with the regulatory requirements.

When multiple consumers are involved:

• Disclosures can be made to any consumer primarily liable on the account.
• In cases where the right of rescission applies, in which case required disclosures must be made to each consumer with the right to rescind.

In case a disclosure becomes inaccurate because of an event that occurs after the creditor mails or delivers the disclosures, the resulting inaccuracy is not a violation.

B. Account Opening Disclosure

I. Rules Affecting Home-Equity Plans

A. Finance Charge

The creditors are required to provide the following information:

• Explanation of when finance charges begin to accrue.
• Disclosure of periodic interest rates, their applicable balance ranges, and corresponding annual percentage rates (APR).
• Information about variable-rate plans, including when rates can increase and any limitations on such increases.
• Explanation of how the finance charge is calculated, including other charges besides periodic interest rates.

B. Other Charges

Creditors must disclose any charges other than finance charges that may be imposed as part of the home equity plan. The disclosure should specify the amount of these charges or explain how they will be determined.

C. Home Equity Plan Information

These disclosures include:

• Conditions under which the creditor may take certain actions like terminating the plan or changing the terms.
• Payment information for both the draw period and any repayment period.
• A warning that negative amortization may occur (where the outstanding balance increases instead of decreasing).
• Transaction requirements.
• Information regarding the potential tax implications.
• A statement that the annual percentage rate (APR) under the plan does not include costs other than interest.
• Variable-rate disclosures, including information about rate adjustments.

D. Security Interests

The creditors are required to inform the consumer that they will have or acquire a security interest in the property purchased under the home-equity plan or in other property identified by item or type. In essence, this tells the consumer that the creditor has a claim on the property being financed.

E. Statement of Billing Rights

Creditors are required to provide a statement that outlines the consumer's rights and the creditor's responsibilities under specific sections of Regulation Z. This statement is designed to inform consumers of their billing rights, including their rights, in the event of billing errors.

II. Required Disclosure for Open-End Plans

A. Annual Percentage Rate (APR)

• Disclose each periodic rate used to compute the finance charge for purchases, cash advances, or balance transfers, expressed as an annual percentage rate (APR).
• If a rate is variable, disclose that fact and how the rate is determined without specifying the index or formula details.
• If there is an introductory rate, disclose the rate that would apply after it expires.
• Disclose penalty rates and describe the events triggering the increased rate and how long it will remain in effect.

B. Fees for Issuance or Availability

• Disclose any annual or periodic fees related to the issuance or availability of the plan, including any activity or inactivity-based fees.
• Disclose any one-time fees related to opening the plan.

C. Fixed Finance Charge; Minimum Interest Charge

• Disclose any fixed finance charge with a brief description.
• Disclose any minimum interest charge exceeding $1.00, along with a brief description. The threshold amount is subject to periodic adjustment by the Bureau.

D. Transaction Charges

• Disclose any transaction charges imposed by the creditor for plan usage in purchases.

E. Grace Period

• Disclose the date or period within which credit may be repaid without incurring a finance charge.
• If no grace period is provided, disclose this fact.

 F. Balance Computation Method

• Disclose the name of the balance computation method used or provide an explanation if it's not listed. Mention that detailed explanations are provided in the account-opening disclosures.

G. Cash Advance Fee

H. Late Payment Fee

I. Over-the-Limit Fee

J. Balance Transfer Fee

K. Returned-Payment Fee

L. Required Insurance, Debt Cancellation, or Suspension Coverage

M. Available Credit

• If fees or security deposits required at account opening amount to 15% or more of the minimum credit limit, disclose the available credit remaining after debiting these fees or security deposits.

N. Website Reference

• Include a reference to the Bureau's website and state that consumers can obtain information about shopping for and using credit cards.

O. Billing Error Rights Reference

• Include a statement that information about consumers' rights to dispute transactions is included in the account-opening disclosures.

III. Disclosure of Charges Imposed as Part of Open End (not home-secured) Plans

A. Disclosure of Charges

• For charges imposed as part of an open-end plan, disclose the circumstances under which the charge may be imposed.
• Include the amount of the charge or an explanation of how the charge is determined.
• For finance charges, provide a statement of when the charge begins to accrue.
• Explain whether there is a time period within which credit can be repaid without incurring the charge. If such a time period exists, the creditor may choose not to impose a finance charge after it expires.

B. Charges Imposed as Part of the Plan

• Include charges identified Regulations as part of the plan. These are finance charges.
• Cover charges resulting from the consumer's failure to use the plan as agreed, excluding amounts payable for collection activity after default, attorney's fees (whether or not automatically imposed), and post-judgment interest rates permitted by law.
• Include taxes imposed on the credit transaction by a state or other governmental body.
• Cover charges that affect the consumer's access to the plan, the duration of the plan, the amount of credit extended, the period for which credit is extended, or the timing or method of billing or payment.
• Include charges for terminating a plan.
• Cover charges for voluntary credit insurance, debt cancellation, or debt suspension.

C. Charges Not Imposed as Part of the Plan

• Exclude charges imposed on a cardholder by an institution other than the card issuer for the use of the other institution's ATM in a shared or interchange system.
• Exclude charges for a package of services that includes an open-end credit feature if the fee is required, whether or not the open-end credit feature is included, and the non-credit services are not merely incidental to the credit feature.
• Exclude charges under § 1026.4(e) disclosed as specified.
• For a covered separate credit feature and an asset feature on a prepaid account accessible by a hybrid prepaid credit card, exclude any fee or charge imposed on the asset feature if it does not exceed comparable fees or charges imposed on prepaid accounts in the same program without a covered separate credit feature.
• For a non-covered separate credit feature accessible by a prepaid card, exclude any fee or charge imposed on the asset feature.

IV. Disclosure of Rates for Open-End (not home-secured) Plans

A. For Each Periodic Rate

• Disclose the periodic rate and corresponding annual percentage rate (APR).
• Specify the applicable balance range, excluding adjustment for minimum charge balances.
• If rates vary for different transaction types, indicate the applicable type.
• Explain the method used to determine the rate-applied balance.

B. For Variable-Rate Accounts

• Notify consumers that the APR may increase.
• Clarify how the rate is determined, including the margin.
• Outline circumstances triggering rate increases.
• Specify how often the rate may increase.
• Disclose any caps on the amount of rate change.
• Explain the consequences of a rate hike.
• Provide accurate rates within the last 30 days unless indexed to an external factor not controlled by the creditor, in which case rates within the last 90 days are allowed.

C. Rate Changes Not Due to Index or Formula

• Disclose the initial rate and corresponding APR.
• Specify how long the initial rate remains effective and events triggering changes.
• Provide the rate and corresponding APR after the initial rate period, along with any limitations on its duration.
• Outline the balances to which the new rate applies and those to which the current rate applies during the change.

V. Additional Disclosures For Open-End (Not Home-Secured) Plans

• Disclose details if offering credit insurance, debt cancellation, or debt suspension coverage.
• Notify consumers if the creditor has or will acquire a security interest in the purchased property.
• Provide a statement outlining consumer rights and creditor responsibilities as per regulatory sections.

C. Periodic Statement

Creditors must provide consumers with a periodic statement for home-equity plans, disclosing:

• Outstanding balance at the billing cycle start.
• Identification of each credit transaction.
• Amount and date of any credited funds during the cycle.
• Applicable periodic rates, balance ranges, and corresponding annual percentage rates. However, a promotional annual percentage rate, distinct from the regular rate, requires disclosure only during the periods when the promotional rate is applied.
• Amount of finance charge, its components, and the balance on which it is computed.
• Itemized amounts of non-finance charges during the cycle.
• Optional disclosure at creditor’s discretion of the annual percentage rate(s) when a finance charge is imposed.
• Grace period to avoid additional finance charges.
• Address for notifying billing errors.
• Closing date and outstanding balance at that date.

For open-end (not home-secured) plans:

• Outstanding balance at the billing cycle start.
• Identification of each credit transaction.
• Amount and date of credited funds during the billing cycle.
• Annual percentage rate, range of balances, and applicable transaction types. However, there is an exception for promotional rates.
• Amount and explanation of the balance used for interest calculation.
• Charges Imposed:
  (i) Interest Charges: Grouped by type, itemized, and totaled for the statement period and year-to-date.
  (ii) Fees: Grouped, identified by type, itemized, and totaled for the statement period and year-to-date.
• Change-in-Terms Summary: Include information from change-in-terms notices on the periodic statement.
• Grace Period: Due date or time period to avoid additional finance charges.
• Billing Error Notice Address: Address for notifying billing errors.
• Billing Cycle Closing Date and New Balance: Closing date and outstanding balance at that date.
• Due Date and Late Payment Costs: Due date for payment and any associated late payment costs.
• Repayment disclosures: Subject to exceptions in the Regulations, this disclosure includes a minimum payment warning statement, the time and cost for minimum payments, a toll-free number for credit counseling services, and optional 36-month repayment disclosures. If negative or no amortization occurs:
  (i) minimum payment warning statement.
  (ii) advice on reducing interest with higher payments.
  (iii) estimated monthly payment (rounded figure)
  (iv) statement on repayment highlighting 2-year repayment estimate.
  However this is not applicable on:
  (i) charge card accounts requiring full payment.
  (ii) billing cycles immediately following full payment or zero balance in two consecutive cycles.
  (iii) billing cycles where minimum payment clears the entire outstanding balance.
• Deferred Interest or Similar Transaction Disclosure:
  (i) Accounts with deferred interest must display the full payment deadline on the front of each periodic statement during the deferred interest period.
  (ii) The disclosure obligation starts with the first statement reflecting the deferred interest or similar transaction.

5. Closed-End Credit Requirements and Obligations

a. General Disclosure Requirements

The clear and conspicuous standards require the disclosure in a reasonably understandable form.

I. Form of Disclosure

All disclosures under Closed-End Credit must be in written form. However, disclosures under closed-end credit may be forwarded to the consumer in electronic form, provided that all such disclosures are in compliance with the provisions of the Electronic Signatures in Global and National Commerce Act (E-Sign Act). Apart from private education loan disclosures, the terms "finance charge" and "annual percentage rate" must be properly disclosed with the appropriate amount or percentage rate.

II. Time of Disclosure

All disclosures must be made available before the consummation of the transaction. Relevant special timing requirements for specific disclosures such as variable-rate transactions, private education loan disclosures, and residential mortgage transactions must be fully adhered to. In certain mail or telephone orders, the timing of the disclosures may be delayed.

III. Basis of Disclosures & Use of Estimates

The basic disclosure requirements may include the following:

• All disclosures under Closed-End Credit must reflect the agreed legal obligations between the parties.
• In case any necessary information is unknown to the creditor, the creditor must make the relevant disclosures based on the best information reasonably available at the time of the disclosure.
• The creditor must clearly state if the disclosure is an estimate.
• In cases where interest is determined on a per-diem basis, disclosures affected by the per-diem interest are considered accurate if the disclosure is based on the information available to the creditor at the time the document was made.
• The creditor may disregard the effects of the following in making calculations and disclosures;
  (i) Payments are to be made in whole cents.
  (ii) Scheduled payment dates changing due to the scheduled date not being a business day.
  (iii) Differences in the total days of different months.
  (iv) Differences in yearly days because of a leap year.
• If an obligation is payable on demand, the creditor shall make the disclosures based on an assumed maturity of 1 year.
  An alternate maturity date may be agreed to and enforceable between the parties if it is clearly mentioned within the stated legal obligations.

In case a transaction involves multiple creditors:

• a single set of disclosures shall be given,
• the creditors shall decide among themselves who shall comply with the relevant requirements. the disclosure document need only be sent to the consumer primarily liable per the legal obligation text.

IV. Effect of Subsequent Events

• If a disclosure becomes inaccurate because of an event that occurred after the disclosure had been issued, then such an inaccuracy does not violate the requirements.

V. Content of Disclosures

For every transaction other than the mortgage one, a creditor is required to disclose the following information wherever applicable:

• The identity of the creditor.
• The amount financed, in addition to a brief description related to the amount of credit provided.
• A written itemization of the amount financed.
• The Finance charge agreed upon by the parties, including a brief description.
• The annual percentage rate agreed upon by the parties, including a brief description.
• The variable rate agreed upon by the parties with the following information:
  (i) Circumstances where the rate may increase;
  (ii) Limitations on the increase;
  (iii) The effect of an increase;
  (iv) An example of the payment terms that would result from an increase.
• Details related to the payment schedule agreed upon by the parties.
• The total amount of scheduled payments a consumer must pay to the creditor. In case the amount is to be paid over a single transaction, the creditor does not need to mention the total amounts of scheduled payments.
• If the obligation has a demand feature, that fact shall be disclosed.
• The total sale price agreed upon by the parties in addition to a descriptive explanation.
• Any prepayment agreements that the parties may have.
• Any dollar or percentage charge that may be imposed before maturity due to a late payment, other than a deferral or extension charge.The security interest agreed upon by the parties as part of the transaction.
• Any insurance and debt cancellation conditions agreed upon by the parties.
• A statement that a consumer can refer to an appropriate contract document for more information related to nonpayment, default, the right to accelerate the maturity of the obligation, and prepayment rebates and penalties.
• A statement whether or not a subsequent purchaser of the dwelling from the consumer may be permitted to assume the remaining obligation on its original terms.
• In case a creditor has required a consumer to maintain a deposit as a transactional condition, a statement must contain the agreed-upon annual percentage rate.
• The following details related to interest rates and payments must be included within the disclosure in case the Closed-End Credit transaction is secured via real property or a dwelling:
• All relevant information must be in the form of a table with appropriate headings and format.
• In the case of a fixed-rate mortgage, the interest rate at consummation.
• In case of an adjustable-rate mortgage, the interest rate at consummation and any interest rate adjustments that may occur.
• In case of a negative amortization loan, the interest rate at consummation and any possible adjustments.
• The maximum interest rate that may apply.
• Payment details related to amortizing loans with all applicable interest and principles as described within the requirements.
• Payment details related to negative amortizing loans with all applicable interest and principles as described within the requirements.
• Payment details related to balloon payments.
• Any special disclosures for loans with negative amortization.
• Definitions of all important terms used within the legal obligation text.
• A "no-guarantee-to-refinance" statement in case of a Closed-End Credit transaction where the creditor must disclose a statement stating there is no guarantee the consumer can refinance the transaction to lower the interest rate or periodic payments.

6. Customers' Right to Rescission

a. Right to Rescind

In a credit transaction where a security interest is retained or acquired in the future, each consumer whose ownership interest is or will be subject to the security interest shall have the right to rescind the transaction. The right to rescind is only applicable to the addition of the security interest and not the existing obligation. Delivery of the required notice begins the rescission period.

b. When to Exercise Right to Rescind

The consumer may exercise their right to rescind until midnight of the third business day following consummation, delivery of the notice, or delivery of all material disclosures, whichever occurs last. When more than one consumer in a transaction has the right to rescind, the exercise of the right by one consumer shall be effective as to all consumers.

c. Notice of the Rescission

The consumer can rescind until midnight of the third business day after consummation, delivery of notice, or material disclosures (whichever is latest). If notice or disclosures are not delivered, this right expires 3 years after consummation, upon property transfer, or property sale (whichever is first). However, administrative proceedings may extend the rescission period. The exercise of the right to rescind by one consumer in a transaction is effective for all consumers involved.

For every transaction or occurrence subject to a rescission, a creditor must deliver two copies of the notice of rescission to each consumer entitled to this right. The notice must disclose the following:

• Retention or acquisition of security interest on the consumer's principal dwelling.
• Information related to the consumer's right to rescind.
• How consumers can exercise this right.
• The effects of rescission.
• The date the rescission period begins and expires.

Unless a customer expressly waives their right of rescission, no money shall be disbursed other than in escrow, no services shall be performed, and no materials delivered until the rescission period has expired and the creditor is reasonably satisfied that the consumer has not rescinded.

d. Effects of Rescission

Once the customer exercises their right of rescission, the following effects come into play:

• the security interest giving rise to the right of rescission becomes void, and the consumer shall not be liable for any amount.
• Within 20 calendar days after receipt of a notice of rescission, the creditor shall return any money or property that has been given to anyone in connection with the transaction.
• If the creditor has delivered any money or property, the consumer may retain possession until the creditor has met its obligation per the Closed-End Credit transaction requirements.

e. Waiver of Right to Rescind

The consumer may modify or waive the right to rescind if the consumer determines that the extension of credit is needed to meet a bona fide personal financial emergency. The consumer must provide the creditor with a dated written document describing the emergency and modifying the right to rescind. The date-written document should contain the signature of all consumers with the right to rescind.

f. Exemptions

The following open-end transactions are exempt from the customer’s right to rescission:

• A residential mortgage transaction.
• A credit plan in which a state agency is a creditor.

The following Closed-End Credit transactions are exempt from the customer's right to rescission:

• A residential mortgage transaction.
• A refinancing: A refinancing or consolidation by the same creditor of an extension of credit already secured by the consumer's principal dwelling.
• A transaction in which a state agency is a creditor.
• An advance, other than an initial advance, in a series of advances or in a series of single-payment obligations that are treated as a single transaction.
• A renewal of optional insurance premiums that is not considered a refinancing.

7. Regulatory Authority

Regulation Z is regulated by the Consumer Financial Protection Bureau (CFPB). Established in 2010 after the Dodd-Frank Wall Street Reform and Consumer Protection Act was passed, it regulates and enforces several federal consumer protection laws, including Regulation Z of the Truth in Lending Act.

8. How Securiti Can Help

Regulation Z makes transparency a legal requirement for organizations offering credit services to consumers. Naturally, it is inevitable that an organization may find itself having to comply with other data-related obligations in its Regulation Z compliance journey.

In such instances, Securiti can help organizations meet their regulatory compliance requirements with the help of data privacy, security, and governance solutions that can be tailored to meet the unique needs of an organization.

Request a demo today and learn more about how Securiti can help your organization comply with other data-related regulations in the US and across the world.