For example, if an advertisement contains any of a number of terms specified in the Act, then that advertisement must also include certain prescribed disclosures. This may help ensure that the credit terms you advertise are accurate. Thus, advertisers, not just creditors and lessors, must comply, including associations, manufacturers, real estate brokers, builders, and government agencies. There is no liability under the Act for the media in which advertisements appear. The media can, however, protect their customers by screening advertisements to make sure that they comply with the law.
Oral Rate Disclosures Certain rules apply only to creditors.
If a consumer orally asks you, a creditor, about the cost of credit, you must state the annual percentage rate. For closed-end credit, you also may give a periodic or simple interest rate that is applied to an unpaid balance. For open-end credit, once you state the APR, you also may give the periodic rate. If you cannot determine the annual percentage rate for the specific closed-end credit that the consumer asks you about, you may disclose instead the annual percentage rate in a sample transaction. You also may give other information that applies to the consumer's specific transaction, such as the contract interest rates and points.