What must occur for a consumer to be considered contractually obligated according to Regulation Z?

For a consumer to be considered contractually obligated according to Regulation Z, the consumer must sign a contract. This is essential because signing a contract signifies the consumer's agreement to the terms laid out in the document, establishing a binding legal obligation. Regulation Z, which implements the Truth in Lending Act, is designed to ensure that consumers receive clear and standardized information about credit and loan terms. Signing indicates that the consumer has not only received but also accepted the terms, making them contractually bound to fulfill their obligations as outlined in the contract.

While other elements like clear disclosures of terms are necessary for compliance with the regulation, they do not alone create contractual obligations, as a formal agreement must be executed for that commitment to take effect.