Types of Transactions Covered by Reg Z

Man holding his credit card while typing on a laptop


Known as the Truth in Lending Act,  Regulation Z or “Reg Z” covers cases regarding all credit or lending transactions. The purpose of this legislation is to promote the informed use of consumer credit. This law is why all financial institutions use the same language and terminology around credit terms so that consumers can better understand and compare loans. 

Reg Z vs Reg E

Unlike Reg E, this regulation does not require financial institutions to provide a provisional credit after ten days of being asked to investigate fraud. However, when Reg Z is in question, issuers must stop charging interest on the disputed amounts of their account holders. 

Reg Z Dispute Timeframe

This regulation is stringent. If you miss the 60 days from the statement date deadline, FI’s can deny the claim outright. 

Merchant Protection

Reg Z also covers merchant protection, meaning that consumers are protected if they do not receive the merchandise they paid for from an online order (provided that they paid via credit card). 


» Reg Z outlines rules for merchant disputes and credit card issuers 
» Consumers enjoy merchandise protection under this regulation, which is not the case for Reg E 
» Protects borrowers (consumers) from unfair or unjust banking practices 


Devon Anderson Client Development Associate
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