If you advertise closed-end credit, there are several “triggering” terms you need to be aware of. Specifically, if you mention any of the following in an advertisement:
- The amount or percentage of down payment;
- The number of payments or period of repayment;
- The amount of any payment; and,
- The amount of any finance charge.
You are required to provide the following additional information within the advertisement:
- The amount or percentage of the down payment;
- The terms of repayment, which reflect the repayment obligations over the full term of the loan, including any balloon payment;
- The “annual percentage rate”, or “APR”, using one of these terms; and,
- If the rate may be increased after consummation of the loan, that fact.
While this may seem pretty straightforward, there are some additional things to consider.
David explains more in the video.
Published
2024/12/16