What type of loans does Regulation Z primarily cover?

Regulation Z, which is part of the Truth in Lending Act, primarily covers all personal, family, and household loans. This regulation was implemented to ensure that consumers are provided with clear and accurate information regarding the costs associated with borrowing. It requires lenders to disclose essential information such as the annual percentage rate (APR), finance charges, and other terms of credit agreements, enabling borrowers to make informed decisions.

The focus of Regulation Z on personal, family, and household loans means that it does not apply to commercial loans, which are often covered by different regulations. Additionally, the regulation includes loans regardless of their amount, so it is not limited to those above a specific threshold like $50,000. Lastly, it applies to both secured and unsecured loans, making the restriction to only secured loans incorrect. Thus, the broad scope of Regulation Z in covering various types of loans used for personal and household purposes is what makes this answer the most comprehensive and accurate.