Interpretation of Truth in Lending Regulation Z that applies to disclosure of finance charges which only contain one component

R E r ;.E R V E ,f>v 2 4 1975 November 21, 19 75 The Board of Governors of the Federal Reserve System today issued the attached interpretation of its Truth in Lending regulation that applies to disclosure of finance charges which contain only one component.

In such cases, the creditor need not identify the single component beyond the description of "finance charge." Where more than one component is involved, however, creditors must provide the amount of each component (such as interest, credit report fees or service charges).

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