Which law regulates credit, Annual Percentage Rate (APR), and the advertisement of consumer loans?

The law that regulates credit, the Annual Percentage Rate (APR), and the advertisement of consumer loans is the Truth in Lending Act (TILA), specifically under Regulation Z (REG-Z). TILA is designed to promote informed use of consumer credit by requiring disclosures about its terms and cost.

One key aspect of TILA is that it mandates lenders to provide borrowers with clear and standardized information regarding the costs of credit, including the APR. This helps consumers make educated comparisons between various loan offers. Additionally, TILA governs how advertising for consumer loans is conducted, ensuring that claims made in advertisements are not misleading and provide essential information regarding the terms of the loans.

The other laws listed do not cover regulation of credit and APR in the same way. For example, RESPA focuses on disclosure and settlement processes in the home buying process, the FHA deals with housing and urban development, and HMDA governs the collection and reporting of data regarding mortgage lending patterns. Each serves important functions within the realm of real estate and financing, but they do not directly regulate APR or the advertising of consumer loans like TILA does.