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.
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).
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.
Explanation: The statement that would NOT trigger Regulation Z, requiring full disclosure of all aspects of the financing involved, is 'Monthly payments of only $600'.
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")
Regulation Z generally prohibits a card issuer from opening a credit card account for a consumer, or increasing the credit limit applicable to a credit card account, unless the card issuer considers the consumer's ability to make the required payments under the terms of such account.
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.
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.
Examples of Regulation Z requirements include mortgage lenders using standardized loan estimate forms, providing a cooling-off period, and only recommending loans that fit borrowers' best interests.
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 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).
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 ...
Performance is not a valid trigger type in Automation Anywhere.
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.
Trauma triggers: Strong feelings that arise based on past trauma. Example: The sound of firecrackers can be trauma triggers for veterans of war. Symptom triggers: A physical change can trigger larger mental health issues. Example: A lack of sleep could trigger symptoms of bipolar disorder.
Regulation Z does not apply, except for the rules of issuance of and unauthorized use liability for credit cards. (Exempt credit includes loans with a business or agricultural purpose, and certain student loans.
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.
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 ...
Regulation Z prohibits practices in which mortgage brokers and loan originators may receive compensation for referrals or "steering." Buyers typically connect with a real estate agent, who refers them to a specific mortgage lender. The agent receives no compensation for this referral.
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).
Under Regulation Z, a finance charge does not include a charge imposed by a financial institution for paying items that overdraw an account unless, as is typically the case for overdraft lines of credit, the payment of such items and the imposition of the charge are previously agreed upon in writing.