Which regulation implements the Truth in Lending Act?

Regulation Z is the regulation that implements the Truth in Lending Act (TILA), which is designed to promote the informed use of consumer credit by requiring disclosures about its terms and cost. This is crucial as it helps consumers understand the true cost of borrowing, enabling them to compare financing offers and make informed decisions.

Regulation Z mandates that lenders provide specific disclosures to borrowers, such as the annual percentage rate (APR), finance charges, and the total payments required. Additionally, it addresses the rights of consumers in credit transactions, like the right to rescind certain types of loans.

Other regulations, while essential in their own rights, focus on different aspects of financial and credit transactions. For example, Regulation B pertains to the Equal Credit Opportunity Act, which aims to prevent discrimination in credit lending. Regulation X covers the Real Estate Settlement Procedures Act (RESPA), which deals with disclosures regarding settlement costs and procedures. Regulation Y governs the Bank Holding Company Act and is not related to consumer credit. Therefore, the specificity of Regulation Z in implementing TILA makes it the correct answer.