What are trigger words in TILA?

Asked by: Miss Gladyce Powlowski  |  Last update: November 3, 2025
Score: 4.2/5 (17 votes)

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.

What are the trigger terms under TILA?

The triggering terms include charges imposed under a non-home secured credit plan such as finance charges, late fees, over-the-limit fees, returned item fees, fees for obtaining a cash advance, fees to obtain additional or replacement cards, expedited card delivery fees, application and membership fees, annual and ...

What are examples of triggering terms?

Examples of Triggering Terms
  • The amount of a down payment expressed as a percentage or a dollar amount (example: "5% down" or "80% financing")
  • The amount of any payment expressed as a percentage or a dollar amount (example: "$15 per month" or "monthly payments of under $100")

What is a triggering term in real estate?

Share. Definition: used in advertising, include the following – the amount or percentage of down payment, number of payments, period (term) of repayment, amount of any payment, and the amount of any finance charges.

What is a triggering event example?

What Is a Triggering Event? A triggering event is a tangible or intangible barrier or occurrence which, once breached or met, causes another event to occur. Triggering events include job loss, retirement, or death, and are typical for many types of contracts.

TILA Trigger Terms in Advertising (Module 2) | NMLS SAFE MLO Exam Study Series and Test Prep

42 related questions found

Which of the following is a triggering term?

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.

What are the trigger words usually include?

Here's a list of trigger words that create a sense of urgency:
  • Hurry.
  • Rush.
  • Snap.
  • Instantly.
  • Direct.
  • Quick.
  • Accelerate.
  • Swift.

What does not trigger full disclosure under TILA?

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"

How to identify trigger words?

Trigger words (or power words) are words or phrases that compel the reader to take an action, or what's called a conversion in the marketing world. They're most often found in business writing to encourage behavior like clicking a link, buying a product, or signing up for an email list.

What is another word for trigger words?

Synonyms of triggering
  • provoking.
  • inflammatory.
  • explosive.
  • incendiary.
  • inciting.
  • inducing.
  • stimulating.
  • provocative.

What are trigger words also known as?

A trigger word (also known as a power word) is an emotionally colored word or expression used to provoke a psychological reaction in readers (in our case – email recipients) by involving their imagination. Power words appeal to all types and shades of human emotions.

What is the 3 7 3 rule for TILA?

Timing Requirements – The “3/7/3 Rule”

The initial Truth in Lending Statement must be delivered to the consumer within 3 business days of the receipt of the loan application by the lender. The TILA statement is presumed to be delivered to the consumer 3 business days after it is mailed.

What is the most common violation of TILA?

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.

What are examples of TILA?

Examples of the TILA's Provisions

For example, when would-be borrowers request an application for an adjustable-rate mortgage (ARM), they must be provided with information on how their loan payments could rise in the future under different interest-rate scenarios. The act also outlaws numerous practices.

What are trigger terms in TILA?

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.

What are the four main disclosures required under TILA?

Sample disclosures required under TILA include:
  • Annual percentage rate.
  • Finance charges.
  • Payment schedule.
  • Total amount to be financed.
  • Total amount made in payments over the life of the loan.

What is the 7 day closing rule?

The TRID rule provides that the borrower can waive the seven-business-day waiting period after receiving the LE and the three-day waiting period after receiving the CD if the borrower has a “bona fide personal financial emergency,” which requires closing the transaction before the end of these waiting periods.

What are some examples with the word trigger?

Examples of trigger in a Sentence

Verb Smoke triggered the fire alarm. The timer was set to trigger the bomb in exactly one hour. His remarks triggered a public outcry. Certain foods trigger his headaches.

Can anything be a trigger word?

A trigger word is any word or phrase that prompts someone to take action.

What are the trigger terms?

Triggering Terms and Additional Disclosures

The open-end credit advertising rules specify that when certain terms are used in advertisements (triggering terms), additional disclosures are required for both non-home secured loans and home-secured, open-end credit plans (i.e., HELOCs).

What is a trigger in financial terms?

Triggers in the context of investing are market or investment-related occurrences that may cause the system or the investor to take a certain action. An event (trigger condition) and an activity taken when the event occurs make up a basic trigger setup.

What does TILA require for advertising?

If a lender advertises directly to a consumer, TILA requires the advertisement to disclose the credit terms and rate in a certain manner. If an advertisement for credit states specific credit terms, it may state only those terms that actually are or will be arranged or offered by the lender.