A more thorough explanation:

Regulation Z is a rule created by the Federal Reserve Board to enforce the Consumer Credit Protection Act for banks that are members of the Federal Reserve System. This regulation requires lenders to disclose important information to borrowers about the terms and costs of credit before they agree to borrow money.

For example, if you apply for a credit card, the lender must provide you with a document called a "Schumer Box" that outlines the interest rate, fees, and other important details about the card. This helps you make an informed decision about whether or not to accept the credit offer.

Another example is when you apply for a mortgage. The lender must provide you with a document called a "Loan Estimate" that outlines the terms and costs of the loan. This helps you compare different mortgage offers and choose the one that best fits your needs.

Overall, Regulation Z is designed to protect consumers from unfair or deceptive lending practices by ensuring that they have access to clear and accurate information about the credit they are applying for.