Which terms are considered triggering terms under regulation DD requiring additional disclosures?

Asked by: Oren Ullrich DDS  |  Last update: December 21, 2025
Score: 4.3/5 (66 votes)

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 are the trigger terms for closed end loans and additional disclosures that need to be made if they are used in an advertisement

Closed-end credit

When you have a triggering term on an advertisement, you must also disclose, in close proximity, the terms of repayment, APR and if the APR may increase after consummation. The terms of repayment include an example loan amount, loan term and loan payment.

What disclosures are required by Regulation DD?

Financial institutions are required under Regulation DD to disclose information to consumers regarding annual percentage yield, interest rates, minimum balance requirements, account opening disclosures, and fee schedules.

Which trigger words may require further disclosure under Regulation Z?

Triggering Terms and Additional Disclosures
  • Minimum, fixed, transaction, activity, or similar charge that is a finance charge under §1026.4 that could be imposed;
  • Periodic rate that may be applied expressed as an annual percentage rate (APR). ...
  • Membership or participation fees that could be imposed.

What does Regulation DD also require that we disclose in addition to rate information?

Obtain the annual percentage yield disclosed. In addition, the institution must disclose how the balance is determined to avoid the imposition of a fee or to obtain the annual percentage yield.

Advertising: Closed-End Credit Triggering Terms

38 related questions found

Which of the following additional disclosures must be included in any advertisement where the annual percentage yield is stated?

Second, if the annual percentage yield is stated in an advertisement, §230.8(c) requires that the following additional disclosures be made clearly and conspicuously: Variable rates. For variable-rate accounts, a statement that the rate may change after the account is opened. Time annual percentage yield is offered.

What disclosures are required at account opening?

The bank must disclose information such as the following:
  • Interest rates.
  • Crediting and compounding policies.
  • Service fees.
  • Balance computation method.
  • Minimum balance requirements.
  • Transaction limitations.
  • Time requirements (if applicable)

What are examples of trigger terms?

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.

What would be considered a trigger item under Regulation Z?

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.

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.

What are mandatory disclosure requirements?

Mandatory disclosure regimes differ from these other disclosure and compliance initiatives in that they are specifically designed to require taxpayers and promoters to provide tax administrations with early disclosure of potentially aggressive or abusive tax planning arrangements if they fall within the definition of a ...

Which of the following terms should be used when discussing the interest rate on a deposit account with a customer?

Annual Percentage Yield (APY)

A percentage rate reflecting the total amount of interest paid on a deposit account based on the interest rate and the frequency of compounding for a 365-day year.

What are the disclosure requirements?

'Disclosure Requirement' refers to the mandatory rules and regulations that dictate the full reporting of financial transactions, including contributions and expenditures, related to political campaigns or organizations.

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 triggers a revised closing disclosure?

Pre-consummation Changes

If you've provided closing disclosures, discovered an inaccuracy, and haven't closed yet, you're in luck. Section 1026.19(f)(2)(i) requires/permits creditors to provide corrected closing disclosures if the originals become inaccurate before consummation.

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 are reg z trigger terms?

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.

What would be considered a trigger?

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.

What would trigger a change of terms notice under reg. Z?

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 ...

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.

Which of the following is a trigger term for both open and closed-end loans?

Which of the following is a trigger term for advertisements for both open-end and closed-end mortgage loans? The answer is finance charge. The finance charge is a trigger term in advertising for both open- and closed-end loans.

What are the different trigger events?

The events which fire a trigger can be DML statements that modify data in a table (INSERT, UPDATE, or DELETE), DDL statements, system events such as startup, shutdown, and error messages, or user events such as logon and logoff.

What are legally required disclosures?

The receiving party or its representatives may be required by oral questions (i.e., testimony), interrogatories, or other requests for documents in legal proceedings, subpoenas, civil investigative demands, or similar processes, to disclose confidential information.

What disclosures are required by regulation Z?

The Truth in Lending Act, or TILA, also known as regulation Z, requires lenders to disclose information about all charges and fees associated with a loan. This 1968 federal law was created to promote honesty and clarity by requiring lenders to disclose terms and costs of consumer credit.

What do you disclose in initial disclosures?

The names, addresses, telephone numbers and email addresses of all persons likely to have discoverable information, along with the subjects of that information, that the disclosing party may use to support its claims or defenses or that is relevant to the subject matter of the action or the order on any motion made in ...