Triggering terms need not be stated explicitly; additional disclosures are still required if the term may be readily determined from the advertisement. For example, if the advertisement says “80 percent financing available,” the statement is indicating a 20 percent down payment is required (a triggering term).
No specific form or wording is required for a change-in-terms notice. The notice may appear on a periodic statement, or may be given by sending a copy of a revised disclosure statement, provided attention is directed to the change (for example, in a cover letter referencing the changed term).
Phrases or figures used in advertising that will "trigger" other Regulation Z disclosures. 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.
Common Violations
A common Regulation Z violation is understating finance charges for closed-end residential mortgage loans by more than the $100 tolerance permitted under Section 18(d).
Error Notice Requirements
Oral or written notice must be provided within 60 days after transmitting a periodic statement listing the disputed transactions (can be extended for extenuating circumstances). Notice identifies consumer's name and account number.
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.
This could include emotions, physical symptoms, or flashbacks. Triggers are things that remind a person of a traumatic event, such as certain places, people, smells, or times of the year.
No notice required (§ 230.5(a)(2)) An institution is not required to provide a notice for the following changes: • For variable-rate accounts, any change in the interest rate and corresponding changes in the annual percentage yield, • Any changes in fees assessed for check printing, • For short-term time accounts, any ...
Notice Requirements legal definition: The purpose of “notice requirements” is to ensure all parties to a court action are made aware of said court action. Notice ensures that individuals who are being sued or criminally charged have due process.
A change notice is a formal, written communication that details modifications or updates to a product, process, or system.
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 quick definition of triggering condition:
A triggering condition is an event that must happen before something else can happen. For example, if someone promises to pay for a car repair, the triggering condition is that the car must actually be repaired.
The regulation requires that the terms "finance charge" and "annual percentage rate" be disclosed more conspicuously than any other required disclosure. The finance charge and APR, more than any other disclosures, enable consumers to understand the cost of the credit and to comparison shop for credit.
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.
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.
Certain types of loans are not subject to Regulation Z, including federal student loans, loans for business, commercial, agricultural, or organizational use, loans above a certain amount, loans for public utility services, and securities or commodities offered by the Securities and Exchange Commission.
The psychotherapists in this study also mentioned family issues, poverty, environmental changes, stressful life events, death of a loved one, trauma, abuse, feelings of helplessness and personality differences as triggering factors.
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.
Meaning of triggering in English
causing a strong emotional reaction of fear or worry because someone is made to remember something bad that has happened in the past: For people with PTSD, loud noises can be triggering. a triggering experience.
The three main factors that influence the design of error messages are technical limitations, the amount of information to be presented, and what kind of user input is required.
A servicer shall comply with the requirements of this section for any written notice from the borrower that asserts an error and that includes the name of the borrower, information that enables the servicer to identify the borrower's mortgage loan account, and the error the borrower believes has occurred.
Small servicers are exempt from certain rules that larger servicers must follow, such as about how they provide billing statements and contact you about your loan. Also, the rule about whether or not a servicer can charge you for home insurance you didn't choose applies differently to small servicers.