[Code of Federal Regulations]

[Title 12, Volume 3]

[Revised as of January 1, 2006]

From the U.S. Government Printing Office via GPO Access

[CITE: 12CFR226.24]



[Page 307-308]

 

                       TITLE 12--BANKS AND BANKING

 

                   CHAPTER II--FEDERAL RESERVE SYSTEM

 

PART 226_TRUTH IN LENDING (REGULATION Z)--Table of Contents

 

                       Subpart C_Closed-End Credit

 

Sec. 226.24  Advertising.



    (a) Actually available terms. If an advertisement for credit states 

specific credit terms, it shall state only those terms that actually are 

or will be arranged or offered by the creditor.

    (b) Advertisement of rate of finance charge. If an advertisement 

states a rate of finance charge, it shall state the rate as an ``annual 

percentage rate,'' using that term. If the annual percentage rate may be 

increased after consummation, the advertisement shall state that fact. 

The advertisement shall not state any other rate, except that a simple 

annual rate or periodic rate that is applied to an unpaid balance may be 

stated in conjunction with, but not more conspicuously than, the annual 

percentage rate.

    (c) Advertisement of terms that require additional disclosures. (1) 

If any of the following terms is set forth in an advertisement, the 

advertisement shall meet the requirements of paragraph (c)(2) of this 

section:

    (i) The amount or percentage of any downpayment.

    (ii) The number of payments or period of repayment.

    (iii) The amount of any payment.



[[Page 308]]



    (iv) The amount of any finance charge.

    (2) An advertisement stating any of the terms in paragraph (c)(1) of 

this section shall state the following terms,\49\ as applicable:

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    \49\ An example of one or more typical extensions of credit with a 

statement of all the terms applicable to each may be used.

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    (i) The amount or percentage of the downpayment.

    (ii) The terms of repayment.

    (iii) The annual percentage rate, using that term, and, if the rate 

may be increased after consummation, that fact.

    (d) Catalogs or other multiple-page advertisements; electronic 

advertisements. (1) If a catalog or other multiple-page advertisement, 

or an advertisement using electronic communication, gives information in 

a table or schedule in sufficient detail to permit determination of the 

disclosures required by paragraph (c)(2) of this section, it shall be 

considered a single advertisement if:

    (i) The table or schedule is clearly and conspicuously set forth; 

and

    (ii) Any statement of terms of the credit terms in paragraph (c)(1) 

of this section appearing anywhere else in the catalog or advertisement 

clearly refers to the page or location where the table or schedule 

begins.

    (2) A catalog or other multiple-page advertisement or an 

advertisement using electronic communication complies with paragraph 

(c)(2) of this section if the table or schedule of terms includes all 

appropriate disclosures for a representative scale of amounts up to the 

level of the more commonly sold higher-priced property or services 

offered.



[Reg. Z, 46 FR 20892, Apr. 7, 1981, as amended at 66 FR 17338, Mar. 30, 

2001]