If an installment sale advertisement includes any triggering terms, what must also be included in the ad?

When an advertisement for an installment sale uses triggering terms, it must also disclose specific information to ensure compliance with the federal Truth in Lending Act (TILA). Triggering terms refer to phrases that suggest financing options to the consumer, such as the monthly payment amount, the number of payments, or the dollar amount of any payment.

The inclusion of the amount or percentage of the down payment, the terms of repayment, and the Annual Percentage Rate (APR) is required because these details provide critical information to the consumer about the true cost of financing.

The amount or percentage of the down payment gives potential customers insight into what they will need to pay upfront. The terms of repayment outline how long they will be making payments and the schedule of those payments. The APR includes the cost of borrowing expressed as a yearly rate, giving consumers a clear understanding of the interest charges over the life of the loan.

As for the statement regarding the "name of the funding source," it is not required to be included in the advertisement. Therefore, stating that all the mentioned elements must be included except for the funding source is correct. This ensures that potential buyers have all the required details to make an informed decision without overwhelming them with unnecessary information that is not mandated by regulations.