source:
  type: regulation
  id: reg-z-1026.1
  authority: 12 CFR §1026.1 — Authority, purpose, coverage, organization, enforcement,
    and liability (Regulation Z)
  description: 12 CFR §1026.1 — Authority, purpose, coverage, organization, enforcement,
    and liability.
  coverage_tier: context
obligations:
- id: reg-z-1026.1-full
  canonical_id: reg-z-1026.1-full
  section: 12 CFR §1026.1 — Authority, purpose, coverage, organization, enforcement,
    and liability
  type: reference
  tags:
  - regulator-direct
  - tila
  - corpus-expansion
  - tier-context
  primary_source:
    tier: 1
    authority: 12 CFR §1026.1 — Authority, purpose, coverage, organization, enforcement,
      and liability
    source_class: cfpb-regulation
    source_url: https://www.law.cornell.edu/cfr/text/12/1026.1
    snapshot_id: dc61a7cf9d66d6e7
    fetched_at: '2026-06-17T18:31:36Z'
    content_hash: sha256:76561b5b64e771e09c0b34d1d8d212c84bb7db15e962b1d99705f4fc1961eb57
    paragraph_quote: '§ 1026.1 Authority, purpose, coverage, organization , enforcement,
      and liability. (a) Authority. This part, known as Regulation Z, is issued by
      the Bureau of Consumer Financial Protection to implement the Federal Truth in
      Lending Act , which is contained in title I of the Consumer Credit Protection
      Act , as amended ( 15 U.S.C. 1601 et seq. ). This part also implements title
      XII, section 1204 of the Competitive Equality Banking Act of 1987 ( Pub. L.
      100-86 , 101 Stat. 552 ). Furthermore, this part implements certain provisions
      of the Real Estate Settlement Procedures Act of 1974 , as amended ( 12 U.S.C.
      2601 et seq. ). In addition, this part implements certain provisions of the
      Financial Institutions Reform, Recovery, and Enforcement Act, as amended ( 12
      U.S.C. 3331 et seq. ). The Bureau''s information-collection requirements contained
      in this part have been approved by the Office of Management and Budget (OMB)
      under the provisions of 44 U.S.C. 3501 et seq. and have been assigned OMB No.
      3170-0015 (Truth in Lending). (b) Purpose. The purpose of this part is to promote
      the informed use of consumer credit by requiring disclosures about its terms
      and cost, to ensure that consumers are provided with greater and more timely
      information on the nature and costs of the residential real estate settlement
      process, and to effect certain changes in the settlement process for residential
      real estate that will result in more effective advance disclosure to home buyers
      and sellers of settlement costs. The regulation also includes substantive protections.
      It gives consumers the right to cancel certain credit transactions that involve
      a lien on a consumer ''s principal dwelling , regulates certain credit card
      practices, and provides a means for fair and timely resolution of credit billing
      disputes. The regulation does not generally govern charges for consumer credit,
      except that several provisions in subpart G set forth special rules addressing
      certain charges applicable to credit card accounts under an open-end (not home-secured)
      consumer credit plan. The regulation requires a maximum interest rate to be
      stated in variable-rate contracts secured by the consumer ''s dwelling . It
      also imposes limitations on home-equity plans that are subject to the requirements
      of § 1026.40 and mortgages that are subject to the requirements of § 1026.32
      . The regulation prohibits certain acts or practices in connection with credit
      secured by a dwelling in § 1026.36 , and credit secured by a consumer ''s principal
      dwelling in § 1026.35 . The regulation also regulates certain practices of creditors
      who extend private education loans as defined in § 1026.46(b)(5) . In addition,
      it imposes certain limitations on increases in costs for mortgage transactions
      subject to § 1026.19(e) and (f) . (c) Coverage. (1) In general, this part applies
      to each individual or business that offers or extends credit, other than a person
      excluded from coverage of this part by section 1029 of the Consumer Financial
      Protection Act of 2010 , title X of the Dodd-Frank Wall Street Reform and Consumer
      Protection Act , Public Law 111-203 , 124 Stat. 1376 , when four conditions
      are met: (i) The credit is offered or extended to consumers; (ii) The offering
      or extension of credit is done regularly; (iii) The credit is subject to a finance
      charge or is payable by a written agreement in more than four installments;
      and (iv) The credit is primarily for personal, family , or household purposes.
      (2) If a credit card is involved, however, certain provisions apply even if
      the credit is not subject to a finance charge, or is not payable by a written
      agreement in more than four installments, or if the credit card is to be used
      for business purposes. (3) In addition, certain requirements of § 1026.40 apply
      to persons who are not creditors but who provide applications for home-equity
      plans to consumers. (4) Furthermore, certain requirements of § 1026.57 apply
      to institutions of higher education. (5) Except in transactions subject to §
      1026.19(e) and (f) , no person is required to provide the disclosures required
      by sections 128(a)(16) through (19), 128(b)(4), 129C(f)(1), 129C(g)(2) and (3),
      129D(h), or 129D(j)(1)(A) of the Truth in Lending Act , section 4(c) of the
      Real Estate Settlement Procedures Act, or the disclosure required prior to settlement
      by section 129C(h) of the Truth in Lending Act . Except in transactions subject
      to § 1026.20(e) , no person is required to provide the disclosure required by
      section 129D(j)(1)(B) of the Truth in Lending Act . Except in transactions subject
      to § 1026.39(d)(5) , no person becoming a creditor with respect to an existing
      residential mortgage loan is required to provide the disclosure required by
      section 129C(h) of the Truth in Lending Act . (6) The requirements of § 1026.42(i)
      apply to certain persons regardless of whether they are creditors and even if
      the mortgage, as defined in § 1026.42(i)(2)(v) , is primarily for business,
      commercial, agricultural, or organizational purposes. (d) Organization. The
      regulation is divided into subparts and appendices as follows: (1) Subpart A
      contains general information. It sets forth: (i) The authority, purpose, coverage,
      and organization of the regulation; (ii) The definitions of basic terms; (iii)
      The transactions that are exempt from coverage; and (iv) The method of determining
      the finance charge. (2) Subpart B contains the rules for open-end credit . It
      requires that account -opening disclosures and periodic statements be provided,
      as well as additional disclosures for credit and charge card applications and
      solicitations and for home-equity plans subject to the requirements of § 1026.60
      and § 1026.40 , respectively. It also describes special rules that apply to
      credit card transactions, treatment of payments and credit balances , procedures
      for resolving credit billing errors, annual percentage rate calculations, rescission
      requirements, and advertising. (3) Subpart C relates to closed-end credit .
      It contains rules on disclosures, treatment of credit balances , annual percentage
      rate calculations, rescission requirements, and advertising. (4) Subpart D contains
      rules on oral disclosures, disclosures in languages other than English, record
      retention, effect on state laws, state exemptions, and rate limitations. (5)
      Subpart E contains special rules for mortgage transactions. Section 1026.32
      requires certain disclosures and provides limitations for closed-end credit
      transactions and open-end credit plans that have rates or fees above specified
      amounts or certain prepayment penalties. Section 1026.33 requires special disclosures,
      including the total annual loan cost rate, for reverse mortgage transactions.
      Section 1026.34 prohibits specific acts and practices in connection with high-cost
      mortgages, as defined in § 1026.32(a) . Section 1026.35 prohibits specific acts
      and practices in connection with closed-end higher-priced mortgage loans , as
      defined in § 1026.35(a) . Section 1026.36 prohibits specific acts and practices
      in connection with an extension of credit secured by a dwelling . Sections 1026.37
      and 1026.38 set forth special disclosure requirements for certain closed-end
      transactions secured by real property or a cooperative unit, as required by
      § 1026.19(e) and (f) . (6) Subpart F relates to private education loans. It
      contains rules on disclosures, limitations on changes in terms after approval,
      the right to cancel the loan, and limitations on co-branding in the marketing
      of private education loans. (7) Subpart G relates to credit card accounts under
      an open-end (not home-secured) consumer credit plan (except for § 1026.57(c)
      , which applies to all open-end credit plans). Section 1026.51 contains rules
      on evaluation of a consumer ''s ability to make the required payments under
      the terms of an account . Section 1026.52 limits the fees that a consumer can
      be required to pay with respect to an open-end (not home-secured) consumer credit
      plan during the first year after account opening. Section 1026.53 contains rules
      on allocation of payments in excess of the minimum payment. Section 1026.54
      sets forth certain limitations on the imposition of finance charges as the result
      of a loss of a grace period. Section 1026.55 contains limitations on increases
      in annual percentage rates, fees, and charges for credit card accounts. Section
      1026.56 prohibits the assessment of fees or charges for over-the-limit transactions
      unless the consumer affirmatively consents to the creditor''s payment of over-the-limit
      transactions. Section 1026.57 sets forth rules for reporting and marketing of
      college student open-end credit . Section 1026.58 sets forth requirements for
      the Internet posting of credit card accounts under an open-end (not home-secured)
      consumer credit plan. (8) Several appendices contain information such as the
      procedures for determinations about state laws, state exemptions and issuance
      of official interpretations, special rules for certain kinds of credit plans,
      and the rules for computing annual percentage rates in closed-end credit transactions
      and total-annual-loan-cost rates for reverse mortgage transactions. (e) Enforcement
      and liability. Section 108 of the Truth in Lending Act contains the administrative
      enforcement provisions for that Act. Sections 112, 113, 130, 131, and 134 contain
      provisions relating to liability for failure to comply with the requirements
      of the Truth in Lending Act and the regulation. Section 1204(c) of title XII
      of the Competitive Equality Banking Act of 1987 , Public Law 100-86 , 101 Stat.
      552 , incorporates by reference administrative enforcement and civil liability
      provisions of sections 108 and 130 of the Truth in Lending Act . Section 19
      of the Real Estate Settlement Procedures Act contains the administrative enforcement
      provisions for that Act. [ 76 FR 79772 , Dec. 22, 2011, as amended at 77 FR
      70114 , Nov. 23, 2012; 78 FR 6962 , Jan. 31, 2013; 78 FR 80106 , Dec. 31, 2013;
      80 FR 32687 , June 9, 2015; 82 FR 37768 , Aug. 11, 2017; 89 FR 64577 , Aug.
      7, 2024]'
  judgment: false
