Which regulation governs private loans?

Regulation Z is the correct answer because it implements the Truth in Lending Act (TILA), which focuses on consumer protection in lending practices, including private loans. It requires lenders to disclose clear and accurate information about loan terms and costs, allowing consumers to make informed decisions. This regulation is particularly crucial for private loans, as these often carry different terms compared to conventional loans from banks or credit unions.

Regulation Z mandates that lenders provide a clear disclosure of the annual percentage rate (APR), finance charges, and the total amount financed. This helps to ensure borrowers understand the total cost of credit and the terms of repayment, which is essential when dealing with private loan agreements that might not have the same transparency as institutional loans.

In contrast, Regulation X primarily addresses the Real Estate Settlement Procedures Act (RESPA) and focuses on real estate settlement practices, while Regulation A and Regulation Y pertain to securities and bank holding companies, respectively. These regulations do not directly impact the requirements or practices surrounding private loans, making Regulation Z the most relevant in this context.