Which regulation governs the disclosure of the cost of credit?

The Truth in Lending Act (TILA) is designed to promote informed use of consumer credit by requiring clear disclosure of terms and costs associated with borrowing. It mandates that lenders provide borrowers with essential information, such as the Annual Percentage Rate (APR), the total cost of credit, and any additional fees or charges. This regulation aims to ensure that consumers can make informed decisions by understanding the true costs of credit before entering into loan agreements.

In contrast, the other regulations mentioned serve different purposes. The Equal Credit Opportunity Act focuses on preventing discrimination in lending. The Real Estate Settlement Procedures Act aims to provide disclosures related to the closing process of real estate transactions and to ensure fair settlement practices. The Home Mortgage Disclosure Act requires certain lenders to provide information about their mortgage lending practices to promote transparency and address potential discrimination in lending. Thus, TILA specifically addresses how lenders must inform consumers about the costs associated with credit, making it the appropriate regulation for this question.