closed end credit trigger terms

Under 102624d1 whenever certain triggering terms appear in credit advertisements the additional credit terms enumerated in 102624d2 must also appear. The annual percentage rateusing that term spelled out in full.

Federal Register Duties Of Creditors Regarding Risk Based Pricing Rule

For example when advertising closed-end credit products such as mortgages or.

. Here are are the triggering terms and specific requirements for various advertisement types including deposits closed-end loans open-end loans and non. The amount of any payment expressed either as a percentage or as a dollar amount. 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. For instance a few terms for closed end credit that trigger the need for additional disclosure are. The correct answer is.

22624 - Closed end credit. The number of payments. Subpart C - Closed-End Credit 102617 102624 Show Hide 102617 General disclosure requirements.

For example if an advertisement for credit secured by a dwelling offers 300000 of credit with a 30-year loan term for a payment of 600 per month for the first six months increasing to 1500 per month after month six followed by a balloon payment of 30000 at the end of the loan term the. With closed end credit when you originally apply for a loan with the lender the terms never change. If any of the following terms is set forth in an advertisement the advertisement must include the additional disclosures described in D2.

The terms of repayment. Closed-end credit allows you to borrow a specific amount of money for a finite term. 102660 Credit and charge card applications and solicitations.

Friday March 11 2022. If any of the following terms is set forth in an advertisement the advertisement shall meet the requirements of paragraph d 2 of this section. These Rules apply to any closed-end consumer credit transaction that is secured by a dwelling 12 CFR.

The amount of any. Section 102616b applies even if the triggering term is not stated explicitly but may be readily determined from the advertisement. The trigger terms for closed-end loans are.

Triggering terms are words or phrases that must be accompanied by a disclosure when theyre used in advertising. By contrast open-end credit is revolving credit like a credit card that enables you to borrow repeatedly with no specified repayment date. 2 The number of payments or period of repayment.

A membership fee is not a triggering term nor need it be disclosed under 102616b1iii if it is required for participation in the plan whether or not an open-end credit feature is. Amount or percentage of any down payment Number of payments or the period of repayment Payment amounts. What are trigger terms for Closed End credit.

Reg Z has two marketing sections that address trigger term. The periodic rate used to compute the finance charge or the annual percentage. The amount or percentage of the down payment.

The period of repayment the total time required to repay. These disclosures are mandated by the TILA which is designed to protect consumers from inaccurate and unfair credit billing and credit card practices. Click card to see definition.

If any triggering term is used in a closed-end credit advertisement then the following three disclosures must also be included in that advertisement. Triggering Terms 102616 b. Every day except Sundays and Federal holidays.

The amount of the down payment expressed either as a percentage or as a dollar amount. If the annual percentage rate may be. Before we focus on ARMs lets examine the general trigger term and additional disclosure requirements that apply to all advertisements for closed-end credit under Regulation Z.

A trigger term is used when advertising what type of credit plan. These are under Section Section 22616 and 22624. Closed end loan trigger terms.

I The amount or percentage of any. These provisions apply even if the triggering term is not stated. Closed-end credit and open-end credit.

The following is from our training manual on Advertising. More specifically the TILA Servicing Rules require. Specifically consumer credit typically comes in two categories.

The triggering terms are.

What Is A Triggering Term