Which of the following are considered TILA trigger terms?

To determine which items are considered TILA trigger terms, it's important to understand what the Truth in Lending Act (TILA) defines as such. Trigger terms are specific terms that, when used in advertisements for credit, require the disclosure of additional information to consumers.

The correct choice includes terms that are directly linked to the costs or terms of the borrowing arrangement that consumers would find essential to understanding the offer. These terms are balance, term, Annual Percentage Rate (APR), and payment. When any of these terms are used in advertisements, they prompt the lender to provide more detailed disclosures, ensuring that consumers are adequately informed about the financial implications of the offer.

Balance refers to the total amount owed on the loan, which is critical for a borrower to know; the term indicates the duration over which the loan will be repaid; APR is essential for understanding the true cost of borrowing as it includes interest and any associated fees; and payment signifies the amount that the borrower must pay regularly, which is vital for budgeting purposes.

In contrast, other options may include terms that are relevant to loans but do not meet the specific criteria defined by TILA for triggering additional disclosure requirements. Understanding which terms are considered trigger terms helps ensure compliance with TILA and protects consumers by providing