What must a credit union do within 60 days after discovering a Reg Z compliance error?

Within 60 days of discovering a Regulation Z compliance error, a credit union is required to both notify the member of the error and make the appropriate adjustments to rectify the situation. This dual obligation aims to ensure transparency and fairness in lending practices as mandated by the Truth in Lending Act, which Regulation Z enforces.

Notifying the member is critical because it keeps them informed about any discrepancies related to their account, fostering trust and ensuring they understand how the error impacts them financially. Making the necessary adjustments is equally vital to correct the financial records and any potential harm caused by the error, ensuring compliance with consumer protection laws.

The comprehensive nature of this requirement reflects a commitment to accountability and consumer rights, as it addresses not just the correction of the error, but also the importance of communication with the affected member. Other choices fall short by either omitting one of these essential components or failing to emphasize the full responsibility a credit union holds in maintaining regulatory compliance and consumer trust.