What does Regulation Z of the Truth in Lending Act primarily focus on?

Regulation Z, which is part of the Truth in Lending Act (TILA), specifically focuses on lending practices and the requirements for disclosures that lenders must provide to borrowers. It mandates that lenders disclose certain information about the terms and costs of credit clearly and prominently, ensuring that consumers can understand the actual cost of borrowing money. This includes information such as the Annual Percentage Rate (APR), finance charges, and the total amount financed.

By emphasizing full disclosure, Regulation Z helps protect consumers from predatory lending practices and ensures they can make informed decisions when taking out loans. This regulation is critical in promoting transparency in lending, thereby allowing borrowers to compare different loan offers easily and understand the implications of their borrowing.