What is required to be disclosed to cardholders under Regulation Z?

Under Regulation Z, financial institutions are required to provide consumers with clear and conspicuous disclosures regarding the terms of credit agreements. This includes important information about finance charges, the annual percentage rate (APR), and other key details that affect the cost of credit to the cardholder.

This requirement is in place to ensure that consumers can make informed decisions about using credit. By disclosing the complete terms of the credit agreement, including finance charges, consumers gain insight into what they need to know about their borrowing costs. Such transparency helps in fostering responsible borrowing and avoids unexpected fees or charges that can arise from credit use.

The other choices do not encompass the comprehensive regulatory requirements outlined under Regulation Z. For example, estimated transaction fees or projections and feedback statistics do not provide the essential terms that influence a consumer's use of credit. Hence, the requirement to disclose the terms of the credit agreement, particularly regarding finance charges, is central to Regulation Z's objectives of consumer protection and informed decision-making.