Florida Broker Practice Exam

Which of the following is NOT a requirement when a triggering term is used in an advertisement?

1. Disclosure of the terms of repayment

2. Disclosure of the annual percentage rate

3. Disclosure of interest rates only

4. Disclosure of the amount or percentage of down payment

The correct answer is: Disclosure of interest rates only

When engaging in advertising that includes triggering terms, it is essential to follow specific guidelines set forth to ensure transparency and inform potential consumers adequately. The correct answer indicates that disclosure of interest rates only is not a requirement under these regulations. When a triggering term is present in an advertisement—such as specific loan amounts, payment amounts, or other financial specifics—certain disclosures must accompany those terms. Disclosure of the terms of repayment, the annual percentage rate (APR), and the amount or percentage of down payment are all mandated to provide a complete picture of the financial obligation involved. These requirements are designed to help consumers understand the total cost of a loan and its implications. In contrast, simply disclosing interest rates is not sufficient on its own to meet regulatory standards. Interest rates must be presented in context with other key financial information to avoid misleading consumers about the true cost of financing. This ensures that all prospective borrowers are fully informed before making financial commitments. Therefore, the necessity for additional disclosures beyond just interest rates clarifies why this aspect is not a requirement.