What is considered a "trigger term" in advertising?

A "trigger term" in advertising refers to specific terms that, when used, require additional disclosures to be made to consumers. For example, phrases like "low monthly payments" or "no down payment" are considered trigger terms because they provide information that can significantly influence a borrower's decision, and thus, the law mandates that lenders must also disclose certain information, such as the terms of repayment and any requirements associated with the loan. This requirement is part of regulation to ensure transparency and protect consumers from misleading advertising practices.

Using terms that convey specifics about loan costs, payment structures, or down payments can lead consumers to seek further details, which is why appropriate disclosures must be provided alongside these terms to ensure borrowers fully understand the implications of their financial decisions. This is especially critical in a field as complex as mortgage financing, where the details can have significant impacts on the borrower's financial situation.