Truth in Lending Act (TILA)/Regulation Z
- CRCM Study Guide 2026/2027
TILA is a regulation intended to protect _____ transactions
a) Consumer
b) Commercial
c) Business
d) All of the above - Correct answer✅✅ a - consumer: TILA cover only consumer transactions
Name the three things that define "Consumer Credit" in TILA - Correct answer✅✅ 1) Offered or
extended by a creditor to a natural person or a covered trust
2) Subject to a finance charge or payable in more than 4 installments
3) For personal, family, or household purposes
True or False:
Certain credit card arrangements can be covered under TILA even they do not meet the finance charge
or four installment test, or if they are not for consumer use - Correct answer✅✅ True - certain credit
card arrangements are covered.
A creditor regularly extends credit if it has made more than...
Name the four possible coverage standards - Correct answer✅✅ 1) 25 consumer loans in the
preceding calendar year
2) 5 loans secured by a dwelling in the previous calendar year
3) 1 closed-end loan secured by principal dwelling where borrower - paid a high interest rate or high fee
4) Any creditor who did not meet the previous calendar-year standards but is currently meeting the
standards
- CRCM Study Guide 2026/2027
TILA is a regulation intended to protect _____ transactions
a) Consumer
b) Commercial
c) Business
d) All of the above - Correct answer✅✅ a - consumer: TILA cover only consumer transactions
Name the three things that define "Consumer Credit" in TILA - Correct answer✅✅ 1) Offered or
extended by a creditor to a natural person or a covered trust
2) Subject to a finance charge or payable in more than 4 installments
3) For personal, family, or household purposes
True or False:
Certain credit card arrangements can be covered under TILA even they do not meet the finance charge
or four installment test, or if they are not for consumer use - Correct answer✅✅ True - certain credit
card arrangements are covered.
A creditor regularly extends credit if it has made more than...
Name the four possible coverage standards - Correct answer✅✅ 1) 25 consumer loans in the
preceding calendar year
2) 5 loans secured by a dwelling in the previous calendar year
3) 1 closed-end loan secured by principal dwelling where borrower - paid a high interest rate or high fee
4) Any creditor who did not meet the previous calendar-year standards but is currently meeting the
standards
