Which regulation requires a bank to provide a clear disclosure of credit terms?

The Truth in Lending Act (TILA) is designed to promote informed use of consumer credit by requiring clear and conspicuous disclosure of credit terms. Under TILA, lenders must provide consumers with key information regarding the cost of credit, such as the Annual Percentage Rate (APR), terms of the loan, and any fees associated with it. This regulation aims to ensure that borrowers understand the financial commitments they are entering into, thereby protecting them from misleading practices and enabling them to compare different credit offers effectively.

Other regulations mentioned focus on different areas of banking compliance. The Fair Housing Act addresses housing discrimination, aiming to ensure equal access to housing regardless of race, color, religion, sex, or other protected characteristics. The Community Reinvestment Act encourages banks to help meet the credit needs of the communities in which they operate, particularly low- and moderate-income neighborhoods. Lastly, the Bank Secrecy Act requires financial institutions to assist in detecting and reporting suspicious activities related to money laundering and other financial crimes. Each of these regulations serves distinct purposes, making the Truth in Lending Act the specific regulation focused on the disclosure of credit terms.