What must be included in advertisements containing "trigger terms" for closed-end credit?

In the context of closed-end credit, advertisements that include "trigger terms" must provide specific additional information to ensure transparency and avoid misleading potential borrowers. Trigger terms are phrases that describe specific features of a loan, such as the amount of the loan, the term of the loan, or the interest rate. When such terms are used in an advertisement, the law requires that the advertisement also includes certain essential details, including the down payment amount, the terms of repayment, and the annual percentage rate (APR).

Including the down payment amount helps consumers understand the upfront costs associated with the loan. Specifying the terms of repayment allows potential borrowers to see how long they will be paying off the loan and what their monthly payment will look like. Finally, providing the APR gives a clearer picture of the true cost of borrowing, as it encompasses both the interest rate and any additional fees or costs, allowing borrowers to make more informed comparisons between different loan offers.

This requirement serves the purpose of consumer protection, ensuring that advertisements do not lead individuals to make decisions based on incomplete or misleading information.