What Is a Triggering Term?

A triggering term is a term that, when triggered, results in the termination of a contract or agreement. Triggering terms are typically found in credit and debt agreements, and can be triggered by a number of different events, such as the failure to make a payment, the breach of another term of the agreement, or the occurrence of an event of default.

What violates the Truth in Lending Act?

The Truth in Lending Act (TILA) is a federal law that was enacted in 1968 in an effort to protect consumers from unfair credit practices. The act requires lenders to disclose the terms of a loan to borrowers in a clear and concise manner, so that borrowers can make an informed decision about whether or not to enter into a loan agreement.

TILA violations can occur in a number of ways. For example, a lender may fail to provide the required disclosures, or may provide disclosures that are misleading or confusing. Additionally, a lender may charge certain fees without disclosing them upfront, or may fail to give the borrower a chance to cancel the loan within a certain period of time.

If you believe that a lender has violated TILA, you may file a complaint with the Consumer Financial Protection Bureau.

What is a trigger term in an advertisement for credit?

A trigger term in an advertisement for credit is a word or phrase that is designed to prompt an emotional reaction in the reader or viewer, in order to encourage them to take action on the offer. For example, a trigger term in an ad for a new credit card might be "No annual fee!" or "0% APR for 12 months!" Is no closing costs a trigger term? No, "no closing costs" is not a trigger term. However, it is important to be aware of the potential for hidden costs when considering a no closing cost mortgage. Be sure to ask your lender about all fees and charges associated with the loan, and get everything in writing before making a decision.

Which of the following are common Regulation Z Violations?

• Failing to provide required disclosures
• Charging unauthorized fees
• Imposing interest charges in excess of the legal limit
• Failing to credit payments properly
• Making inaccurate statements about credit terms
• Making misleading statements about credit availability
• Making false or misleading statements about debt relief services

Which of the following in an ad for residential mortgage financing would trigger additional disclosures?

The ad states that the lender offers "no money down" financing.

The Truth in Lending Act (TILA) requires lenders to disclose the terms and conditions of credit products before consummation of the transaction. TILA also requires lenders to provide borrowers with a Loan Estimate and a Closing Disclosure that itemizes all costs associated with the loan.

In this case, the ad states that the lender offers "no money down" financing, which would trigger additional disclosures. The lender would be required to disclose the terms and conditions of the financing, as well as the costs associated with the loan.