2020Directory_FNL_FlippingBook

If any of these terms are used, the advertisement must include the following terms: - The down payment; - Terms of repayment which reflect the repayment obligations over the full loan term, including any balloon payment; and - The “annual percentage rate”or “APR”and whether the rate is subject to increase. Similarly, for consumer leasing, if a lessor includes the following terms in an advertisement, they are considered “triggering terms”: - Any lease payment; or - The capitalized cost reduction or other payment due prior to or at lease signing (or that no payment is required), or by delivery if delivery occurs after consummation. If the advertisement includes any of these triggering terms, then the advertisement must also include the following disclosures: - A specific reference that the advertised transaction is a lease; - The total amount due at lease signing or by delivery if delivery occurs after consummation; - The number, amounts, and due dates or periods of scheduled payments; - Whether a security deposit is required; and - A statement that an extra charge may be imposed at the end of the lease term where the lessee’s liability (if any) is based on the difference between the residual value and its realized value at the end of the lease term. Additionally, if an advertisement for a lease provides a percentage rate in an advertisement, the rate may not be more prominent than any of the required consummation disclosures (with the exception of the notice stating that “this percentage may not measure the overall cost of financing this lease” required to accompany the rate), and the lessor may not use the term“annual percentage rate,”“annual lease rate,”or equivalent term. There are different rules for open-end credit. Both Regulation Z and Regulation M contain special rules for catalog and electronic advertisements, as well as television and radio advertisements. You should consult with your local attorney to ensure that your advertisements comply with applicable law. State Laws and Regulations State laws on unfair and deceptive acts and practices are often even stricter than Section 5 of the FTC Act and many State Attorneys General have guidelines for vehicle advertising in their state in both traditional and online media. You should check with your attorney to make certain you comply with applicable state laws and rules.

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165 2020 MEMBERSHIP DIRECTORY & SERVICES GUIDE