§1664 Advertising of Credit Other Than Open End Plans

Summary

Requires that ads for consumer loans or other credit follow simple disclosure rules. The rules do not cover open-end credit plans. If an ad shows a finance charge rate, it must give that rate as an annual percentage rate. If an ad gives any payment detail — such as a downpayment, an installment amount, a dollar finance charge, the number of payments, or the repayment period — the ad must also state the downpayment (if any), the repayment terms, and the annual percentage rate. Ads for residential real estate are excluded unless the Bureau creates rules otherwise. If the ad is for credit secured by a consumer’s main home and the loan might exceed the home’s fair market value, and the ad is printed or on the Internet (not radio or TV), the ad must clearly say the interest on the part over fair market value is not tax deductible for Federal income tax purposes and that the consumer should consult a tax adviser about deductibility of interest and charges.