Which of the following is considered a triggering term?

Asked by: Angelica Ernser I  |  Last update: March 11, 2025
Score: 4.3/5 (37 votes)

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 quizlet?

Triggering terms. 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.

What is a triggering term 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.

Is APR a triggering term?

Statements of the annual percentage rate or statements that there is no particular charge for credit (such as “no closing costs”) are not triggering terms under this paragraph.

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

16 related questions found

Is down payment a trigger term?

Down payment: A reference to a down payment in an advertisement acts as a triggering term only if a down payment is actually required for the credit product. For example, stating that no down payment is required does not trigger additional disclosures.

What is APR also known as?

The term annual percentage rate of charge (APR), corresponding sometimes to a nominal APR and sometimes to an effective APR (EAPR), is the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a loan, mortgage loan, credit card, etc.

What is a triggering term in banking?

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 ...

Which of the following is not a triggering term?

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.

Which of the following are trigger terms for home equity loans?

The triggering terms are:
  • The amount of the down payment, expressed either as a percentage or as a dollar amount. ...
  • The amount of any payment expressed either as a percentage or as a dollar amount. ...
  • The number of payments. ...
  • The period of repayment (the total time required to repay). ...
  • The amount of any finance charge.

Is no annual fee a trigger term?

The trigger terms are those required to be disclosed under section 1026.6(b)(3) and include the APR, transaction fees, annual fee and certain other charges. This applies to trigger terms stated in the positive ($50 annual fee) and in the negative (no annual fee).

What is considered 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.

Which of the following best describes a trigger quizlet?

Which of the following best describes a trigger? Something that easily sets you off and causes an immediate, often emotional, reaction.

Which of the following is considered a triggering term except?

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.

What is considered triggering?

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.

What is term triggering?

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.

Which of the following is an example of a triggering event?

Examples of trigger events include globalization, shifts in labor market, deregulation, and mergers and acquisitions. Each of these events can cause adjustments in market equilibria, changes in competitive landscapes, or shifts in strategic business decisions.

What is the trigger term?

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. Pronunciation: \ˈtri-g(ə-)riŋ\

What are triggers in banking?

Triggers tracks a consumer's credit behaviour across multiple products and send an alert whenever there's a change in a customer profile. You receive valuable knowledge about your customers swiftly, enabling you to identify your low-risk, high-value customers and take action.

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 is APR payment terms?

Annual percentage rate (APR) refers to the yearly interest rate you'll pay if you carry a balance on your credit card. Some credit cards have variable APRs, meaning your rate can go up or down over time.

What is an example of APR?

Here is an example:

If your current balance is $500 for the entire month and your APR rate is 17.99%, you can find your daily periodic rate by dividing your current APR by 365. In this case, your daily APR would be approximately 0.0492%. By multiplying $500 by 0.00049, you'll find your daily periodic rate is $0.25.

What is APR in banking terms?

APR – or Annual Percentage Rate – refers to the total cost of your borrowing for a year.