Under truth-in-lending disclosure laws, if the disclosed rate increases by 0.125% or greater, the borrower must wait how many business days before signing?

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Multiple Choice

Under truth-in-lending disclosure laws, if the disclosed rate increases by 0.125% or greater, the borrower must wait how many business days before signing?

When the disclosed APR changes by 0.125% or more, lenders must issue a corrected Truth in Lending disclosure and give the borrower a waiting period before signing. That waiting period is seven business days. “Business days” means weekdays, excluding weekends and holidays, so the counting reflects real shopping time rather than wall-clock days. This longer interval gives the borrower a meaningful chance to review the revised terms and costs and avoid rushing into the loan. Shorter periods or counting calendar days wouldn’t provide the same protection.

When the disclosed APR changes by 0.125% or more, lenders must issue a corrected Truth in Lending disclosure and give the borrower a waiting period before signing. That waiting period is seven business days. “Business days” means weekdays, excluding weekends and holidays, so the counting reflects real shopping time rather than wall-clock days. This longer interval gives the borrower a meaningful chance to review the revised terms and costs and avoid rushing into the loan. Shorter periods or counting calendar days wouldn’t provide the same protection.

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