A triggering term is a word or phrase that legally requires one or more disclosures when used in advertising. Triggering terms are defined by the Truth in Lending Act (TILA) and are designed to protect consumers from predatory lending practices.
The following are trigger terms: the amount or percentage of any down payment, the payment period, the monthly payment, and the amount of the finance charge.
Final answer: Under Regulation Z, 'B) Low monthly payments' and 'D) Only $10,000 down' are considered trigger items because they detail specific terms of the loan, which requires additional disclosures such as APR and terms of repayment.
Regulation Z
Reg Z trigger terms: The amount or percentage of any down payment (e.g., $1,000 down), The number of payments or period of repayment (e.g., 60 months financing), The amount of any payment (e.g., $400 per month), or. The amount of any finance charge.
Whenever the creditor changes the consumer's billing cycle, it must give a change-in-terms notice if the change either affects any of the terms required to be disclosed under § 1026.6(a) or increases the minimum payment, unless an exception under § 1026.9(c)(1)(ii) applies; for example, the creditor must give advance ...
Final answer: The only term that is not a 'trigger term' according to Regulation Z is the APR. Trigger terms in Regulation Z are those that could potentially cause misunderstanding about the cost of credit, including downpayment amount, number of payments or repayment period, and finance charge amount.
A trigger is a stimulus that elicits a reaction. In the context of mental illness, "trigger" is often used to mean something that brings on or worsens symptoms. This often happens to people with a history of trauma or who are recovering from mental illness, self-harm, addiction, and/or eating disorders.
The following are examples which do not trigger the required disclosures: "No down payment" "18% Annual Percentage Rate" "Rate loans available here" "Easy monthly payments"
Final answer: A 'triggering term' in advertising refers to specific financial terms which necessitate additional disclosures under specific laws. All examples provided, except 'mortgage is assumable', qualify as 'triggering terms' as they provide specific financial figures requiring further information.
For closed-end credit advertisements, the triggering terms include the number of payments or period of repayment (30 years or 360 payments), payment amount or the amount of any finance charge.
The more significant TILA violation for borrowers, especially those facing foreclosure, is the right of rescission. "Rescinding" the loan means the borrower can void the loan as if it was never made. The right of rescission can be a powerful weapon against foreclosure.
Triggers come in different flavors, like DML triggers (After Triggers, Instead Triggers), DDL triggers, LOGON triggers, LOGOFF triggers, and SERVERERROR triggers.
A trigger is a stored procedure in a database that automatically invokes whenever a special event in the database occurs. For example, a trigger can be invoked when a row is inserted into a specified table or when specific table columns are updated.
Finance charge amount: Mentioning the finance charge amount includes stating the dollar amount of the finance charge or any portion of it. However, disclosing the APR or stating there is no particular charge for credit (such as no closing costs) is not a triggering term.
Creditors with assets of less than $2.336 billion (including assets of certain affiliates) on December 31, 2021, are exempt from the requirement to establish escrow accounts for higher-priced mortgage loans in 2022 if other provisions of Regulation Z are also met.
Performance is not a valid trigger type in Automation Anywhere.
Certain provisions of Regulation Z are applicable in instances where a credit card is involved, especially when the credit card is intended for business purposes, even if the credit does not have a finance charge or is not payable in more than four installments.
TILA promotes the informed use of consumer credit by requiring timely disclosure about its costs. It also includes substantive provisions such as the consumer's right of rescission on certain mortgage loans and timely resolution of billing disputes.