Truth in Lending: 5.12.2.2 When Must Variable Rate Disclosures Be Made
These disclosures must be made in every transaction in which the terms of the legal obligation allow the creditor to increase the annual percentage rate originally disclosed to the consumer that are not covered by the ARM requirements.1216 It includes not only increases in the interest rate but also increases in any of the components of the annual percentage rate, such as the rate of required credit life insurance.