What triggers the requirement for additional credit terms in advertisements?

What triggers the requirement for additional credit terms in advertisements?

• A. Amount or % of monthly payment
• B. Number of years for the loan
• C. Amount or % of any down payment
• D. Credit score of the borrower

Answer: (C)

The requirement for additional credit terms in advertisements is triggered by mentioning the amount or percentage of any down payment. When an advertisement specifies a down payment, it is considered a significant financial detail that affects a consumer's understanding of the total cost of the financing arrangement. This requirement aims to provide transparency and ensure that consumers have all the necessary information to make informed decisions about loans. In the realm of advertising for credit products, when any down payment details are disclosed, the law mandates that the advertisement must also include clear terms related to the credit being offered. This is to avoid misleading potential borrowers by omitting critical information about their financial obligation. Usually, the inclusion of down payment details will likely lead to other requirements, such as the annual percentage rate (APR), total payments, and the terms of repayment, being included in the advertisement as well. While the other answer choices pertain to important aspects of lending and financing, they do not trigger the requirement for additional credit terms in advertisements in the same way that mentioning a down payment does. For instance, specifying the monthly payment amount or the duration of the loan would also require certain disclosures, but it is the down payment mention that has a more direct regulatory impact on the necessity for further credit terms in marketing materials

The requirement for additional credit terms in advertisements is triggered by mentioning the amount or percentage of any down payment. When an advertisement specifies a down payment, it is considered a significant financial detail that affects a consumer's understanding of the total cost of the financing arrangement. This requirement aims to provide transparency and ensure that consumers have all the necessary information to make informed decisions about loans.

In the realm of advertising for credit products, when any down payment details are disclosed, the law mandates that the advertisement must also include clear terms related to the credit being offered. This is to avoid misleading potential borrowers by omitting critical information about their financial obligation. Usually, the inclusion of down payment details will likely lead to other requirements, such as the annual percentage rate (APR), total payments, and the terms of repayment, being included in the advertisement as well.

While the other answer choices pertain to important aspects of lending and financing, they do not trigger the requirement for additional credit terms in advertisements in the same way that mentioning a down payment does. For instance, specifying the monthly payment amount or the duration of the loan would also require certain disclosures, but it is the down payment mention that has a more direct regulatory impact on the necessity for further credit terms in marketing materials