What document must be included in advertising closed-end loans if triggering terms are mentioned?

When advertising closed-end loans, if any triggering terms are mentioned—such as specific loan amounts, payment amounts, or the number of payments required—the advertisement must include the annual percentage rate (APR). This requirement is in place to ensure that consumers have clear and comprehensive information about the cost of borrowing, allowing them to make informed decisions.

The inclusion of the APR is crucial because it represents the total yearly cost of borrowing, expressed as a percentage of the loan amount, and incorporates not just the interest rate but also any other fees or costs associated with the loan. This transparency helps consumers compare different loan offers more effectively.

While other financial details like loan servicing fees or the original loan amount are important, they themselves do not have the same regulatory requirement linked to the mention of triggering terms in advertisements. Furthermore, the borrower's credit score, although informative, is not mandated for disclosure in these advertisements under Regulation Z. Therefore, the stipulation for including the APR when triggering terms are used aligns with the broader goal of protecting consumers through clear and understandable loan information.