Quote Originally Posted by Taliriah View Post
You will still see it but It'll be a bunch of asterisks instead. Not really useful
No it hides the whole message. Very useful for blocking rmt which makes new characters to spam the same message.

Display of Filtered Terms
The Term Filter can be applied to hide the display of registered words in one of two ways:

Display the applicable term filter's number.
A system message will be displayed, indicating the term filter applied to the chat log. (e.g. "Message could not be displayed due to Term Filter 1.")

Hide the affected message in its entirety.
Messages containing a registered word will be completely hidden.