Check a consumer credit contract against Regulation Z disclosures
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- Build a checklist of the disclosure items in Regulation Z § 1026.18 and flag which items the draft contract does not show. Do not rewrite the disclosure box.
- What the lawyer must review
- Section 1026.18 applies to each transaction other than a mortgage transaction subject to § 1026.19(e) and (f). Where it applies, the creditor discloses, as applicable, the creditor’s identity, the amount financed, the finance charge and the annual percentage rate, using those terms. Mortgage loans that use the TRID disclosures are outside § 1026.18. Open the section that applies to this contract, and read the tolerances in § 1026.18(d) before you treat a finance-charge figure as accurate.
- Written for / version
- United States versionUS
Who does what
| Role | What they do |
|---|---|
| Assistance | Potential support includes preparing preliminary structure or wording and identifying points for review. Confirm the tool’s capability and permitted scope. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- Trace every relied-on figure to its source, confirm dates and assumptions, and independently recalculate totals or derived amounts.
- Review operative clauses in the complete document, including definitions, cross-references, schedules and inconsistencies with the instructions.
- Verify the applicable jurisdiction and the version of each relevant law, rule or instrument in force at the material time.
- Confirm the output against the client’s instructions and the complete relevant source material, including omissions or contradictions.
- Resolve exceptions and record the responsible lawyer’s approval of the exact output and intended use.