What is the primary purpose of Regulation Z?

The primary purpose of Regulation Z is to inform the public of credit costs. Regulation Z is part of the Truth in Lending Act (TILA), and it mandates clear disclosure of terms and costs associated with credit transactions. By providing consumers with all pertinent information regarding the terms of credit and the total costs involved, including the annual percentage rate (APR) and other fees, Regulation Z helps consumers make informed decisions about borrowing. This regulation aims to foster transparency and protect consumers from deceptive lending practices by ensuring they fully understand the financial implications of their credit agreements.