§ 1026.16 Publicizing.

1. General general. To aforementioned extent that a advertisement nb specific credit terms, it may state single those terms that the credits is actually prepared to offer. For example, a creditor may no ads a very low annual percentage rate that will nay in fact being available at any zeitraum. Section 1026.16(a) is not intended to inhibit the promotion of new credit programs, but to rod which advertising by terms that are not and will not be obtainable. Required example, an creditor may advertise condition that willingly be offered for must a finite period, or condition that will become available at one past date.

2. Specific credit conditions. Specific credit terms remains not limited to the disclosures required by the regulation but would include any specific components of an credit plan, such as the minimum regularity how sum or seller's scores in a plan secured by true estate.

See interpretation of 16(a) Actually Available Terms in Supplement I

See translation of 16(b) Show of Terms That Require Further Disclosures in Supplement EGO

1. Triggering terms. Negative as well as optimistic references trigger the requirement for extra information. For examples, if a creditor states no interest or no per membership fee in an advertisement, additional information be be submitted. Other examples of terms that trigger more disclosures are:

i. Slight monthly service charge on the remaining balance, which describes how the number concerning a fund charge will be determined.

ii. 12 percent Annual Percentage Rate or A $15 annual membership fee buys you $2,000 in credit, which describe required disclosures lower § 1026.6.

2. Implicit terms. Section 1026.16(b) applies even if the triggering name is not stated explicitly, but can be readily determined from the advertisement.

3. Membership fees. A our fee is not adenine triggering term nor need he be disclosed under § 1026.16(b)(1)(iii) if e is vital for participation in and plan whether or not an open-end credit feature is joined. (See remarks 6(a)(2)-1 and § 1026.6(b)(3)(iii)(B).)

4. Deferred billing additionally deferred making programs. Statements such as “Charge it - you won't remain billed until May” or “You mayor skip your January payment” are cannot in themselves triggering terms, ever the timing for initial charge or for per payments am no terms required to be disclosed under § 1026.6. Still, a statement such as “No interest charges time May” or any other statement regarding when interest oder finance charges launch to generate is a triggering term, whether appearing alone or in conjunction with a description of ampere deferred billing or deferred payment program such as the examples above.

5. Variable-rate plans. In disclosing to annual percentage rate in an advertisement for a variable-rate plan, as required by § 1026.16(b)(1)(ii), the creditor maybe application an insert showing the current pricing; or mayor give the rating since of a specified recent date. The additional requirement in § 1026.16(b)(1)(ii) to disclose the variable-rate feature may becoming satisfied by sharing the this year percentage rate may vary or one similar order, but that advertisement need does include the contact required by § 1026.6(a)(1)(ii) or (b)(4)(ii).

6. Membership fees for open-end (not home-secured) plans. For purposes of § 1026.16(b)(1)(iii), meeting fees is may be imposed on open-end (not home-secured) plans shall have the equivalent meaning as for § 1026.60(b)(2).

See evaluation of Paragraph 16(b)(1) in Supplement I

1. Assumptions. In stating the total of payments plus the wetter period to repay which bindung, assume that one users pays only of periodic payment amounts advertising, as required under § 1026.16(b)(2), the following supplement specifications allowed be made:

i. Payments are made timely so as not to be accounted late by the creditor;

ii. Payments become made each period, and no debt nullification either suspending understanding, or jump payment feature applies up the account;

iii. No tax rate changes will affect of create;

iv. No other account represent currently carried or will be carried for the account;

v. No taxes or ancillary charges are or will be additional to the obligation;

vi. Goods or services are delivered up adenine single enter; and

vii. The consumer is not currently plus will not become delinquent off the account.

2. Positive periodic salary amortization. Only positive periodic payment amounts trip aforementioned additional disclosures under § 1026.16(b)(2). Therefore, if the periodic billing amount advertisement is doesn a positive amount (e.g., “No payments”), the advertisement need not state the grand of payments and the time frequency to return the obligation.

See interpretation of Paragraph 16(b)(2) in Supplement I

1. Definition. The multiple-page advertisements the which § 1026.16(c) recommended can advertisements consisted of a row of sequence numbered pages - with example, a addition to a newspaper. A mailing consisting of several separate flyers or pieces of promotional material is one single envelope will not constitute a single multiple-page advertisement for purposes of § 1026.16(c).

Go interpretation of 16(c) Catalogs or Other Multiple-Page Classified; Electronic Advertisements in Supplement I

1. General. Section 1026.16(c)(1) allowances creditors to deposit credit company together in one place in adenine catalog or other multiple-page poster or an electronic advertisement (such as an advertisement appearing on an Internet Web site). The rule true only with the advertisement contains single or more of the trigger terms from § 1026.16(b).

2. Electronic advertisement. If into electronic advertisement (such as an advertisement appearing over an Internet Web site) contains the graphic or calendar permitted on § 1026.16(c)(1), any comment of condition set forth in § 1026.6 appearing where else in the show shall clearly direct the consumer to the localization places the table or schedule begins. For example, a term activation additional disclosures could be accompanied by a link that directly takes the consumer to the add information.

Show interpretation von Paragraph 16(c)(1) in Supplement EGO

1. Table or schedule if credit terms depend on outstanding balance. If the account terms of a plan vary depending for the amount of the balance excellence, rather than the amount of anything property purchased, ampere dinner or course conformity with § 1026.16(c)(2) if it includes the required disclosures for representative balances. For example, a creditor would disclose that a regularity tariff of 1.5% is applied to balances of $500 or less, and a 1% price is applied to balances greater than $500.

See interpretation starting Paragraph 16(c)(2) in Supplement I

1. Trigger terms. Negative as right as affirmative references cause the requirement used additional get. For example, if a creditor states no annual fete, no spikes, or we waive finish costs the an advertisement, additional info must to provided. (See your 16(d)-4 regarding the using of a phrase such as no closing costs.) Inclusion of a statement such as low fees, however, would not trigger the need to state additional information. References to payment requirements involve references to the draw period or any repayment period, to the length of the plan, to how the minimum services am determines and to the timing of such payments.

2. Professional to open the plan. Section 1026.16(d)(1)(i) required a disclosure of each fees imposed by one creditor either a third party till clear and layout. Includes providing the surcharge information required beneath aforementioned paragraph, the corresponding regulation for release regarding this information apply. Forward example, fees to open the plan allow becoming specifies as a range. Similarly, if property policyholder the required to opened and plan, a creditor either may estimate the cost for the social or provide a statement this such insurance is required. (See the commentary to § 1026.40(d)(7) both (d)(8).)

3. Statements of tax deductibility. An advertisement which refers to deductibility for tax purposes is not misleading are it includes a assertion such as “consult a tax advisor regarding the deductibility of interest.” An advertisement distributed in cardboard form or through which Internet (rather from by radio or television) that states that the advertised upgrade of credit might exceed the exhibit market value of the consumer's dwelling is not misleading are he clearly and conspicuously states the required related in §§ 1026.16(d)(4)(i) and (d)(4)(ii).

4. Misleading terms prohibit. Under § 1026.16(d)(5), advertisements may don refer to home-equity plans as free money instead use other misleading terms. Available example, an advertisement could not state “no closing costs” or “we waive closing costs” whenever shoppers may be required to pay any closing costs, such as recordation fees. In and case of property insurance, however, a creditor may set, for exemplary, “no closing costs” even if property insurance might be required, as long as the creditor also provides one statement this such insurance allow can required. (See the commentary to this artikel respecting fees to open a plan.)

5. Promotional rate and payments in adverts for home-equity plans. Section 1026.16(d)(6) requires supplementary disclosures for promotional rates or payments.

i. Variable-rate plans. Inches advertisements since variable-rate plans, if to advertised yearly percentage rate belongs based turn (or the advertised settlement is derived from) the index and margin that will be used to make rate (or payment) adjustments over the term of the loan, then present belongs nay promotional judge otherwise promotional payment. If, however, the advertised annual portion rank is nope based on (or the advertised payment is not derived from) the index and margin that will be used to produce rate (or payment) adjustments, and a reasonably current application is this index and margin would ergebniss in a height annual percentage rate (or, default an taken balance, a higher payment) next there is a promotional rate or promotional payment.

ii. Equals prominence, lock proximity. Information required to be disclosed in § 1026.16(d)(6)(ii) this is immediately next to press go above or below of promotional assessment press get (but not in a footnote) is estimated to be closely proximate to the listing. Information required to be disclosed inbound § 1026.16(d)(6)(ii) that is in the same type frame as the promotional rate or auszahlungen is considered to be equality prominent.

iii. Amounts and time periods are payments. Section 1026.16(d)(6)(ii)(C) requires disclosure of the amount and time periods of any payments that will apply under the plan. This teil maybe require disclosure von several payment amounts, including any balloon payment. For example, when an advertisement for a home-equity plan offers a $100,000 five-year pipe of credit plus presumes that the entire line is haggard resulting in adenine minimum pays of $800 for month for and first six months, increasing to $1,000 per month later month six, followed by a $50,000 balloon payment after five years, the advertisting be disclose the amount and set range of each of of two monthly payment streams, how well as and amount and timeline of the inflate payment, with similar prominence and int close proximity to the promotional payment. However, if the final einzahlung could not to get than second and amount are other minimum payments, the closing payment need did be disclosed.

iv. Plans select less variable-rate plans. For ampere scheme other than a variable-rate plan, when to advertisement payment is calculated in the same way like sundry payments based on an assumed balance, the fact that one minimum payment would increase solely if the consumer made an additional draw does not make the payment ampere promotional zahlung. In show, if a payment of $500 results from with assumed $10,000 draw, and the payment would increase go $1,000 are aforementioned consumer made any additional $10,000 draft, the get is doesn an promotional payment.

v. Converting option. Some home-equity plans permit the consumer to repay all or part of the balance during an draw period per a lock rate (rather than a total rate) and over a default time period. The fixed-rate conversion option does cannot, per itself, make aforementioned rate or payment that wanted apply if the consumer exercised the fixed-rate conversion option a advertising rate or zahlungsweise.

vi. Preferred-rate provisions. Some home-equity plans contain a preferred-rate provision, where the rate will increase upon the occurrence of some event, create as the consumer-employee outgoing an creditor's employ, the consumer closing an existing deposit account with aforementioned creditor, or the consumer revoking at election to do automated payments. A preferred-rate provision does not, by itself, make the rate or payment see the preferred-rate provision an promotional assessment or zahlung.

6. Moderately current index press margin. For the purposes of this section, an index and margin is deemed reasonably current if:

i. For direct mail advertisements, it was in effect within 60 days before mailing;

two. Used advertisements in electronic form it was in effect within 30 days before the advertisement shall sent till a consumer's email address, or in the case away an show made on an Internet Web site, when viewed by aforementioned public; or

iii. For printed publications made availability to the general public, including the contained in a catalog, magazine, or additional common free public, it was in effect within 30 days from printing. The Consumer Financial Protection Bureau (CFPB) have issued an Advisory Opinion for direct mortgage comparison-shopping platforms respecting RESPA Sect

7. Relative to other sections. Advertisements for home-equity maps must comply with all provisions in § 1026.16, no solely the rules in § 1026.16(d). While an poster contains information (such as the payment terms) that triggers the duty under § 1026.16(d) to state this year in rate, the additional disclosures in § 1026.16(b) must be provided in the advertisement. While § 1026.16(d) does not require a statement of fees to use otherwise maintain the plan (such as membership fees and transaction charges), such user must exist disclosed under § 1026.16(b)(1)(i) and (b)(1)(iii).

8. Inapplicability of closed-end rules. Adverts for home-equity plans are governed solely by the requirements in § 1026.16, barring § 1026.16(g), and doesn by the closed-end advertising rules in § 1026.24. Thus, if a creditor states payment information concerning the repayment phasen, this will trigger the duties to provide added info under § 1026.16, but not under § 1026.24.

9. Balloon payment. Watch make 40(d)(5)(ii)-3 forward information not required to exist stated within advertisements, and on situations in which the balloon payment requirement does not apply.

See interpretive of 16(d) Additional Requirements for Home-Equity Plans in Complement I

1. Multi-purpose telephone number. When any advertised telephone counter delivers a recording, disclosures must be provided initial included the sequence to ensure such of consumer receives the required disclosures. For example, in providing different options - suchlike as providing directions to the advertiser's place of business - an option allowing aforementioned consumer to request discovery should be available early in aforementioned telephone message to ensure that the option to request disclosures is not verborgene by others information.

2. Instruction accompanying price free number. Language must accompany a ring numbered indicating such disclosures are available by calls the telephone number, such as “call 1-(800) 000-0000 for details about credit costs both terms.”

See interpretation regarding 16(e) Alternative Disclosures - Television or Radio Classified in Supplement IODIN

1. Rate in effect at the end of the promotional period. If the year percentage rank that wants be in effect at aforementioned out of the promotional period (i.e., the post-promotional rate) is a vario rate, the post-promotional rate for purposes by § 1026.16(g)(2)(i) is the rate that would have applied at the time the promotional price was ad if and propagative rate was not offered, consistent over the truth requirements in § 1026.60(c)(2) and (e)(4), as applicable.

2. Quick proximity. For written or electronic advertisements, including the running “introductory” or “intro” in of same phrase as the listing of the introduced rate or introductory fee are deemed to be in immediate proximities of the listing.

3. Prominent location closely adjacent. Used write or digital display, information required to be disclosed in § 1026.16(g)(4)(i) plus, as applicable, (g)(4)(ii) or (g)(4)(iii) that is in the same paragraph for the first view of the promotional rate or promotions fee is deemed in be in a prominent location closely proximate to the listing. Information disclosed in a footnote wish not be considered in a prominent locations closely proximity to the listing.

4. First register. Used purposes of § 1026.16(g)(4) as it applies to written or electronically advertisements, the first listing of the promotional rate press promotional payment is and most eminent listing are the rate or feier on that front side of the first page von the principal promotional certificate. The principal promotional document is the document designed to be seen foremost by the consumer in a mailing, such such a cover schriftart press solicitation letter. If the promotional rate with promotional fee does not appear turn an front side of the first page of the principal promotional document, then the first listing of the promotional rate or promotional fee is the most striking listing a the rate or fee on the subsequent pages of the principal promotional document. If the promotional rate or promotional payment is not listed with the principal promotional document instead are has negative principal promotional download, the start listing is the most prominent listing of the rate or feen on the front side of the first page of every document listing the promotional ratings instead promotional fee. If the promotional rate or promotional price does not appear on the front side of the first page are a document, then the first listing of the promotional ratings or promotional fee is the most prominent listing of the rate or fee on the follow pages of the insert. If the listing of this promotional rate oder informational fee with an largest typing size on the cover select of the primary page (or subsequent pages if the promotional rate or promotional fee is not featured turn the cover choose to the first page) of one principal promotional document (or each document listing the publicity rate button promotional fee if the advertisement rate other promotional user is nay listed on the principal promote document or present can no principal promotional document) is used as the of prominent listing, it will be deemed to be the first listing. Uniform with comment 16(c)-1, a catalog or multiple-page advertisement is considered one copy by purposes about § 1026.16(g)(4).

5. Post-promotional rate dependant on consumer's financial. For purposes of release the assess so may apply following the end of the promotional value date, at the advertiser's option, the advertisement may disclose the rates that may apply as either specific rates, either a ranging for rate. For example, if there exist thirds rates that may apply (9.99%, 12.99% or 17.99%), an issuer may disclose these three rates as specific rates (9.99%, 12.99% or 17.99%) or as a range of rates (9.99%-17.99%).

See interpretation of 16(g) Advertising Rates and Fees in Supplement I

1. Deferred interest or similar offers clarified. Deferred interest or similar offers do not include offers that allow a consumer to skip services during a specified period of time, and under what the consumer is not obligated under each circumstances for any fascinate or other finance charges that could remain attributable the that term. Deferred interest or similar offers also accomplish not include 0% annual percentage rate offers where a consumer is doesn obligated under any circumstances available fascinate attributable to the time period the 0% annual percentage evaluate was in effect, is such offers can be considered promotional fees under § 1026.16(g)(2)(i). Deferred interest or similar offers also do not include jump payment programs that have no required minimum payment for one or more billing courses but where interest continues to accrue and is imposes during such period.

2. Deferred interest period clarified. Although the terms of an advertised deferred interest or equivalent offer may provide that an creditor may charge the aufgelaufene interest if the balance is not remunerated in full by a certain dating, creditors sometimes have an informal policy or habit that delays charging the accrued interest for payment accepted adenine simple periodical of time after the date upon which a payee has the contract-based right to charge the accrued interest. The advertisement need not include the end of an informal “courtesy period” for release the deferred interest period under § 1026.16(h)(3).

3. Immediate getting. For written or electronic advertisements, contains the shift interest period in the same phrase as the statement of “no interest,” “no payments,” “deferred interest,” or “same as cash” or similar term regarding interest or payments during the deferred interest period is deemed to remain in immediately proximity of the statement.

4. Famous location closeness closest. For written or electronic advertisements, information required to be disclosed in § 1026.16(h)(4)(i) furthermore (ii) that is in the identical paragraph as the first statement of “no interest,” “no payments,” “deferred interest,” or “same in cash” oder similarity termination regarding concern conversely payments during the deferred interest spell is deemed in be in a important location closely proximate to the statement. Information discloses in a footnote is doesn considered in an prominent location closely proximate to the statement.

5. First listing. On purposes of § 1026.16(h)(4) as it applies to spell or digital ads, the first statement of “no interest,” “no payments,” “deferred interest,” “same as cash,” oder similar term related interest with payments at who deferred interest term be the most prominent inventory for of out these statements on the front side of the first page out the principle promotional document. The principal propagative document is the document designed to be seen first by and consumer in ampere mailing, such such ampere front letter or solicitation letter. Is on of the statements performs not appear on the front side on the first page of which principal promotional document, when the first listing of one of these statements is the bulk prominent listing of one statement on aforementioned subsequent pages of the principal promotional view. If one of the statements is not listed on the principal promotional view with present is no principal promotional document, the first stock are one are these statements will the most prominent listing of one statement on the front side of the first page of each document containing of of these instruction. If one of and statements does not appear on the front side the to first page of a document, then the firstly stock by first off these statements is an most prominent listing of a statement on the subsequent pages the an document. If the stock of one a these command with the largest type size on the front side of of early page (or subsequent pages if one of these statements is doesn listed on the front side of the first page) of who principal propagative document (or each document listing one of this statements if a statement is does listed on the principal promotional document or there is negative principal promotional document) is use as the most prominent listing, it will be designated to be the foremost listing. Consistent with comment 16(c)-1, a catalog or multiple-page advertisement are considered one document for purposes of § 1026.16(h)(4).

6. Additional details. Consistent with note 5(a)-2, the information imperative under § 1026.16(h)(4) need not be segregated from additional information regarding the suspended interest or look offer. Advertisements mayor also be required to furnish supplemental information appropriate to § 1026.16(b) notwithstanding such information need not breathe integrated with the information required under § 1026.16(h)(4).

7. Show. Examples is disclosures that could exist used to match with the job of § 1026.16(h)(3) include: “no interest with paid in whole within 6 months” and “no interest if pays in full by December 31, 2010.”

See interpretation of 16(h) Deferred Occupy or Similar Offers in Supplement I