Required Verbiage When Advertising Rates

Can you please tell me what the required verbage is when reflecting a rate on a sign or advertising?

1 Answer

ANY time a rate is quoted, ALL of the information that is disclosed on a Truth In Lending Disclosure must be present.  This is violated by advertisers frequently.  Especially, radio adverstisers.  There must be an example used which will express the loan in terms of an Annual Percentage Rate [APR].  This example must give what the monthly payment will be and how many payments will be needed to pay the loan in full.  The Amount Financed and Total of Payments and the Total Finance Charge must also be disclosed.

If you have freeze frame capabilities, you may be able to see that information on some of the TV commercials which quote rates.  If you say 'low rates' or 'competitive rates' you will not need to have all of the other items in your advertising piece.  Some states, New York, for example, will require you to guarantee the rate advertised on the day it is published.  Even if it only appears in a 'rate survey' published by a local paper.

If you are going to advertise a certain rate, just be sure you comply with the Truth In Lending Act and any state laws governing the subject.