closed end credit trigger terms

Tuesday, August 9, 2022 Edit

The following is from our training manual on Advertising. The periodic rate used to compute the finance charge or the annual percentage.

Understanding Finance Charges For Closed End Credit

Triggering terms are words or phrases that must be accompanied by a disclosure when theyre used in advertising.

. The annual percentage rateusing that term spelled out in full. These are under Section Section 22616 and 22624. The amount or percentage of the down payment.

These provisions apply even if the triggering term is not stated. Tap card to see definition. If credit terms are specific are terms stated that the credit union actually offers or will arrange or offer.

These disclosures are mandated by the TILA which is designed to protect consumers from inaccurate and unfair credit billing and credit card practices. If any triggering term is used in a closed-end credit advertisement then the following three disclosures must also be included in that advertisement. If the annual percentage rate may be.

Here are are the triggering terms and specific requirements for various advertisement types including deposits closed-end loans open-end loans and non. Subpart C - Closed-End Credit 102617 102624 Show Hide 102617 General disclosure requirements. Under 102624d1 whenever certain triggering terms appear in credit advertisements the additional credit terms enumerated in 102624d2 must also appear.

For example when advertising closed-end credit products such as mortgages or. A trigger term is used when advertising what type of credit plan. 22624 - Closed end credit.

Those regulations list triggering terms which are words that when used in an ad require you to include specific information on the credit costs and terms you are offering. These Rules apply to any closed-end consumer credit transaction that is secured by a dwelling 12 CFR. The trigger terms for closed-end loans are.

Click card to see definition. Every day except Sundays and Federal holidays. The terms of repayment.

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. If any of the following terms is set forth in an advertisement the advertisement must include the additional disclosures described in D2. The correct answer is.

More specifically the TILA Servicing Rules require. Triggering Terms 102616 b. If the institution used triggering terms on any open-end plan advertisement 10266b opens new window did the advertisement also clearly and conspicuously include.

Reg Z has two marketing sections that address trigger term. Amount or percentage of any down payment Number of payments or the period of repayment Payment amounts. 102616a opens new window 12.

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