CFPBFinal Rule

Truth in Lending (Regulation Z)

Finance & Banking

Summary

This regulation updates rules that require lenders to clearly explain the true cost of borrowing money, including interest rates and fees. The changes make it easier for consumers to understand and compare loans, credit cards, and mortgages so they can make better financial decisions.

Key Points

  • 1Lenders must disclose all costs of borrowing in a clear, standardized format so consumers can easily understand what they're paying
  • 2The rule applies to credit cards, mortgages, auto loans, and other consumer loans offered by banks and financial institutions
  • 3Consumers can now more easily compare loan offers from different lenders to find the best deal
  • 4Lenders who fail to provide clear disclosures or hide fees may face penalties and lawsuits from consumers
  • 5This update modernizes rules that have been in place for decades to address new lending products and digital platforms

Key Dates

Published

December 15, 2025

This summary is for informational purposes only. It may not capture all nuances of the regulation. Always refer to the official text for authoritative information.

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