FRSFinal Rule
Truth in Lending (Regulation Z)
Finance & BankingHousing
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Summary
Truth in Lending (Regulation Z) requires banks and lenders to clearly disclose all costs and terms of loans and credit products so borrowers can understand what they're paying and compare offers fairly. This rule protects consumers from hidden fees and confusing lending practices that could cost them thousands of dollars.
Key Points
- 1Lenders must show you the actual interest rate, total fees, and monthly payment amount before you sign any loan or credit agreement
- 2All credit products are covered, including mortgages, car loans, credit cards, and personal loans from banks and other lenders
- 3Consumers can compare loan offers side-by-side because all lenders must use the same clear format and terminology
- 4Violations can result in fines for lenders and legal action by borrowers who were harmed by non-disclosure
- 5The Federal Reserve enforces this rule and updates it periodically to address new lending products and consumer concerns
Key Dates
Published
December 15, 2025
This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.
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