What is a trigger term under TILA and Regulation Z?
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 examples of trigger 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 considered a triggering term?
Trigger terms are words or phrases, whether positively or negatively mentioned (e.g., “no annual fee”), that prompt additional regulatory disclosures in the headline, subhead, and/or disclosure of the advertisement to clarify the credit costs and terms that are being promoted.
Is zero down payment a trigger term?
Answer: Unless you are involved in advertising a credit sale (i.e., you are financing property you are selling), any mention of a downpayment amount or percentage is not a trigger term.
Which of the following would be considered a trigger term under Regulation Z?
What would be considered a trigger item under regulation Z? “a steal at only 175,000! “ Any specific down payment listed in an ad would be a trigger item that would require that additional information be included.
How do you let go of trigger words?
Here are the steps on how you can recognize your own triggers:
- You Should Pay Attention to Your Mind and Body.
- You Should Step Back and Think.
- Determine the Cause of the Intense Emotions.
- Be Curious.
- Acknowledge Your Feelings.
- You Deserve Some Space.
- Be Open-Minded.
- If You Feel Negative Emotions, Practice Positive Actions.
Is no closing costs a trigger 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.
Which of the following would be considered a trigger term item under Regulation Z?
What are some trigger words or phrases I should avoid?
Trigger phrases: “I’m sorry if…” “I’m sorry but…” “If” and “but” negate an apology. They place the blame on the offended person and indicate that the speaker is not sorry. “If” and “but” will make the person you’re supposedly apologizing to feel even more hurt and angry.
Are there any changes/additions to the trigger terms in Reg Z?
With the recent changes to Reg Z, have there been any changes/additions to the “trigger terms”? While there has been an avalanche of regulatory changes and some rules, such as credit cards targeted to college students and some open-end products have changed, the basic trigger terms have not.
What are the Regulation Z “triggering terms” for mortgage advertising?
Sometimes mortgage advertisers are not fully aware of the Regulation Z “Triggering Terms” rules that require additional disclosures to be made in your mortgage ad. Here’s a quick review of the Triggering Terms that come straight from Reg Z 1026.24: (d) Advertisement of terms that require additional disclosures— (1) Triggering terms.
What is Reg Z and why does it matter?
Regulation Z is the Federal Reserve Board regulation that implemented the Truth in Lending Act of 1968, which was part of the Consumer Credit Protection Act of that same year.
What is a triggering term?
A triggering term is a word or phrase that when used in advertising literature requires the presentation of the terms of a credit agreement. Triggering terms are intended to help consumers compare credit and lease offers on a fair and equal basis. Triggering terms are set and monitored by the U.S. Federal Trade Commission (FTC).