Which of the following must be disclosed if credit trigger terms are included in an advertisement?

Which of the following must be disclosed if credit trigger terms are included in an advertisement?

• A. Current interest rates
• B. Terms of repayment
• C. Late payment penalties
• D. Loan types available

Answer: (B)

When an advertisement includes credit trigger terms, it is required to disclose the terms of repayment. This requirement ensures that consumers are fully informed about the obligations they are entering into if they respond to the advertisement. The terms of repayment provide crucial information regarding how the loan will be paid back, including the duration, installment amounts, and any other relevant payment conditions. Disclosing the terms of repayment helps prevent deceptive practices by ensuring that borrowers understand what is required of them financially. It fosters transparency in lending and allows potential borrowers to make informed financial decisions based on all relevant factors related to borrowing. While other aspects of the advertisement, such as current interest rates, late payment penalties, and types of loans available, may also be important considerations for a consumer, the explicit requirement focuses on providing clarity about how the loan will be repaid, which directly impacts the financial agreement between the lender and the borrower.

When an advertisement includes credit trigger terms, it is required to disclose the terms of repayment. This requirement ensures that consumers are fully informed about the obligations they are entering into if they respond to the advertisement. The terms of repayment provide crucial information regarding how the loan will be paid back, including the duration, installment amounts, and any other relevant payment conditions.

Disclosing the terms of repayment helps prevent deceptive practices by ensuring that borrowers understand what is required of them financially. It fosters transparency in lending and allows potential borrowers to make informed financial decisions based on all relevant factors related to borrowing.

While other aspects of the advertisement, such as current interest rates, late payment penalties, and types of loans available, may also be important considerations for a consumer, the explicit requirement focuses on providing clarity about how the loan will be repaid, which directly impacts the financial agreement between the lender and the borrower.