Which Federal law primarily regulates the advertisement of a lender's credit terms?

The correct answer is that Regulation Z primarily regulates the advertisement of a lender's credit terms. Regulation Z is a part of the Truth-in-Lending Act and was implemented to ensure that consumers receive clear and understandable information regarding the costs associated with credit. It mandates that lenders disclose certain terms and conditions regarding credit, including the Annual Percentage Rate (APR), any finance charges, and other key details in a straightforward manner.

Regulation Z aims to protect consumers by promoting transparency and helping them make informed decisions when comparing various credit options. By requiring lenders to present this information in a consistent format, borrowers can assess and compare credit options more effectively.

While the Truth-in-Lending Act provides the legal framework, Regulation Z specifically outlines the implementation of those laws in terms of advertising and the disclosure of credit terms, emphasizing the clarity and accuracy needed in lending advertisements. Other acts like the Real Estate Settlement Procedures Act and the Equal Credit Opportunity Act focus on different aspects of real estate transactions and lending practices, such as the disclosures required during real estate closings and preventing discrimination in lending, respectively.