Which statement is true regarding an ad that claims a credit card offers a 7.25% annual rate with no balance transfer fee?

The accurate choice is based on the specific regulatory requirements established under the Truth in Lending Act (TILA) and the associated regulation, Regulation Z. In particular, it focuses on how financial advertisements must disclose important terms and conditions to avoid misleading consumers.

The first statement about the ad containing a finance charge trigger can be seen as incorrect because the presence of a stated interest rate, like 7.25%, typically does not alone constitute a triggering term requiring additional disclosures under TILA unless additional criteria are met.

In the second statement, missing balance transfer fee disclosure would imply that fees associated with transferring balances must be disclosed when advertising interest rates if they play a role in overall costs. However, if the ad is designed to highlight the absence of such fees, it does not fail to disclose an important aspect, as there is no fee to disclose.

The third statement concerning the triggering term "call now" doesn't apply here, since the advertisement's focus is on the financial terms and not using language that encourages immediate action without necessary disclosures.

Therefore, stating "None of the above" is valid because the advertisement in question does not mislead or violate disclosure requirements, as it provides a straightforward representation of the credit card's annual rate and clarifies there is no balance