Final answer:
The Federal Truth-in-Lending laws are known as Regulation Z, which requires lenders to disclose credit terms clearly to consumers. It is distinct from the Equal Credit Opportunity Act, which prohibits discrimination in credit transactions.
Step-by-step explanation:
Federal Truth-in-Lending laws are more accurately known as Regulation Z. This federal regulation is a part of the Truth in Lending Act (TILA) and is aimed at protecting consumers when they use credit. It requires lenders to provide clear and standardized information about the costs and terms of credit to consumers. The regulations under this law make it mandatory for the disclosure of important credit terms, such as the annual percentage rate (APR), terms of the loan, and total costs to the borrower.
The Equal Credit Opportunity Act is another important federal law, but rather than governing the disclosure of credit information, it prohibits credit discrimination on the basis of race, color, religion, national origin, sex, marital status, age, or because someone receives public assistance. This act is instrumental in ensuring that all consumers have a fair opportunity to obtain credit and it prohibits lender behavior that could restrict access to credit based on discriminatory factors. While both laws are part of the suite of consumer protection laws related to credit, they serve different purposes within consumer finance.