What regulation requires the disclosure of credit costs to consumers?

Regulation Z is the correct answer because it is a federal regulation that implements the Truth in Lending Act (TILA). This regulation mandates that lenders disclose the terms and costs of credit to consumers in a clear and understandable manner. The primary goal of Regulation Z is to promote the informed use of consumer credit by requiring disclosure of important information regarding the cost of credit, including the annual percentage rate (APR), finance charges, total payments, and the terms of repayment. This allows consumers to make informed decisions when borrowing money or entering into credit agreements, ensuring transparency and helping protect them from unfair lending practices.

The other options pertain to different regulatory frameworks. Regulation C relates to the Home Mortgage Disclosure Act (HMDA), which requires reporting of certain information to help identify patterns in housing credit availability and discrimination. Regulation X deals with the Real Estate Settlement Procedures Act (RESPA), focusing on providing disclosures to homebuyers regarding settlement costs and practices. Regulation F refers to the Fair Debt Collection Practices Act, which aims to protect consumers from abusive debt collection practices. Each of these regulations serves a distinct purpose, but only Regulation Z specifically addresses the obligation to disclose credit costs to consumers.