Skip to content

50% Consumer, 50% Business - Does Reg Z Apply?

Answered by: 

Does Reg Z apply on a consumer loan for $1,000 with less than 50% for business purposes?

Section 226.1(c) of Reg Z states:
In general, this regulation applies to each individual or business that offers or extends credit when four conditions are met:
(i) The credit is offered or extended to consumers;
(ii) The offering or extension of credit is done regularly;
(iii) The credit is subject to a finance charge or is payable by a written agreement in more than 4 installments; and
(iv) The credit is primarily for personal, family, or household purposes.

Also, section 226.2(a)(12) states:
Consumer credit means credit offered or extended to a consumer [b]primarily for personal, family, or household purposes[b]."

Since the loan is not primarily one or the other (personal or business) I would provide TIL disclosures (as well as any other consumer disclosures). You can't exempt it from Reg Z, so it's best to be conservative and provide them.

First published on 7/02/07

First published on 07/02/2007

Filed under: 
Filed under compliance as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics