Lending regulation
Truth in Lending Act (Regulation Z)
Federal law requiring the cost of consumer credit to be disclosed
It makes credit comparable rather than capping what it may cost, and the annual percentage rate exists precisely so two offers can be compared on one number. Regulation Z is the rule implementing it.
How the exam asks about it
The advertising trigger terms are what catch licensees: state a specific figure such as the down payment, the number of payments or the monthly amount, and the full disclosures must accompany it. "Low monthly payments" alone is general enough not to trigger them.
Related terms
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