Closed End Credit Trigger Terms

Provide the credit bureau with any credit reports received from other bureaus within the last sixty (60) days 30 yr mtg loans or 60 low monthly payments *special disclosures.

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(2) the number of payments or period of repayment;

Closed end credit trigger terms. • only $300 origination fee; Amount or percentage of any down payment (i) the amount or percentage of any downpayment.

Triggering terms that require *s. 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: If the annual percentage rate may be increased after consummation of.

These provisions apply even if the triggering term is not stated explicitly but. ♦“up to 48 months to pay” ♦“90 percent financing” ♦“as low as $50 a month” ♦“36 equal payments” ♦$500 total cost of credit” of course, there are triggering terms that do not trigger additional disclosure. A trigger term is an advertised term that requires additional disclosures.

Reg z has two marketing sections that address trigger term. If any of the following terms is set forth in an advertisement, the advertisement must include the additional disclosures described in d.2. Number of payments or repayment period.

(1) the finance charge is not understated by more than $100 on loans made on or after september 30, 1995, or $200 for. (d) advertisement of terms that require additional disclosures—(1) triggering terms. The terms “annual percentage rate” (apr, though the full use of the term must be used once) and “finance charge” when disclosed with a corresponding amount or rate will be more conspicuous than any other disclosure except the credit union’s name.

Even if the understated apr exceeds the applicable tolerance for regular and irregular loans, the apr will be considered accurate if: Or (4) the amount of any finance charge. The annual percentage rate,using that term spelled out in full.

1)the creditor reasonably contemplates repeated transactions; The amount or percentage of the down payment; The periodic rate used to compute the finance charge or the annual percentage rate;

Closed end in the event a financial institution furnishes negative information to a credit bureau for use on a consumer's report, which of the following must it also do? Stating “no downpayment” does not trigger. For instance, a few terms for closed end credit that trigger the need for additional disclosure are:

• 36 to 72 month auto loans; 2)the creditor may impose a finance charge from time to time on an outstanding unpaid balance; Øminimum, fixed, transaction, activity or similar charge øapr øif plan is variable rate, this fact must be disclosed ødiscounted variable rate ømembership or participation fee

• “no fees” • “no transaction charges” • not: (1) the amount or percentage of any downpayment; • 10, 20, or 30 year mortgages;

And 3)the amount of credit extended during the term. These are under section section 226.16 and 226.24. 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.

• rv loans up to 108 months; Here’s a quick review of the triggering terms that come straight from reg z 1026.24: (3) the amount of any payment;

Under § 1026.24(d)(1), whenever certain triggering terms appear in credit advertisements, the additional credit terms enumerated in § 1026.24(d)(2) must also appear.

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