§1664 Advertising of Credit Other Than Open End Plans

Summary

Most ads for consumer credit, loans, or sales must show clear cost information. Open-end credit plans are not covered. Ads for residential real estate are not covered unless the Bureau creates rules that say they are. If an ad gives a finance charge rate, it must show that rate as an annual percentage rate. If an ad shows a down payment, an installment amount, a dollar finance charge, the number of payments, or the repayment period, it must also state the down payment (if any), the repayment terms, and the annual percentage rate. If an ad is about credit secured by a consumer’s principal dwelling and the loan might exceed the home’s fair market value, and the ad is printed or online (not radio or TV), the ad must clearly say that interest on the part above fair market value is not tax deductible for Federal income tax purposes and that the consumer should consult a tax adviser.