What are Trigger items in Regulation Z?

Trigger items in Regulation Z refer specifically to certain numbers or numerical characters that, when used in advertising for credit products, require lenders to provide additional disclosures to consumers. This is rooted in the Truth in Lending Act (TILA), which aims to protect consumers by ensuring they receive clear and understandable information about the terms of credit.

When trigger items such as the amount of the payment, the finance charge, or the annual percentage rate (APR) are mentioned in advertisements, it prompts the necessity for the lender to disclose key terms of the loan agreement. Such disclosures are crucial because they inform consumers of the total cost associated with borrowing and make comparisons between different credit offers easier.

This regulation helps prevent misleading claims and provides a legal framework that enhances transparency in credit transactions, thereby enabling consumers to make more informed decisions.