Pennsylvania Code › Title 10 - BANKING AND SECURITIES › Part IV - Bureau of Consumer Credit Agencies › Chapter 41 - CONSUMER DISCOUNT COMPANIES › Section 41.2 - Advertising

Current through Register Vol. 54, No. 28, July 13, 2024
(a) In a printed or
				written advertisement, a licensee shall set forth its corporate or fictitious
				business name, or both, as designated in its license certificate; except that
				with respect to direct mail solicitation, it is only necessary for a licensee
				to set forth its corporate or fictitious business name, or both, once on any
				one of the pieces constituting a mail solicitation. A licensee shall set forth
				prominently its corporate or fictitious business name, or both, as designated
				in its license certificate on or at the entrance to its place of business. A
				licensee shall retain copies of advertising matter for at least 6 months
				following the final public dissemination of the advertising and shall make the
				advertising available upon request for inspection by the
				Administrator.
(b) The
				Administrator will prohibit the use of advertising matter by a licensee which,
				in his opinion, is false, misleading or deceptive or encourages the purchase of
				debt instruments from a licensee or its affiliates when the licensee knows or
				has reason to know that the debt instrument may not be paid at maturity. A
				licensee referring to payments on loans in an advertisement shall specify the
				amounts of the payments and the number of payments or period of time required
				to discharge the obligation.
(c) A
				licensee may not use the term "legal rates" in an advertisement, nor may
				similar phrases be used in an advertisement wherein the use might mislead the
				public into believing that the rate charged is the legal rate established by
				section 202 of the act of January 30, 1974 (P. L. 13, No. 6) (41 P. S. §
										202). A licensee may not use the phrases "low
				rates," "lower rates," "lowest rate in the city" or other similar phrases
				unless the licensee is able to substantiate the statements to the satisfaction
				of the Department, upon request.
(d) Advertisements of a licensee shall be
				limited to the business contemplated by the act, except that a licensee may
				combine an advertisement of that business with an advertisement of another
				leading business if the advertisement clearly distinguishes the amounts of
				loans or the types of transactions offered by the respective businesses. The
				charges applicable to each type of loan or transaction shall be shown when
				reference is made to rates charged in combined advertising.
(e) On direct loans referred to licensees by
				dealers or merchants in which a part of the loan is paid to dealers or
				merchants in payment for goods or services, as authorized by a consumer, the
				Administrator reserves the right to ascertain whether the selling price of the
				goods or services is reasonable in order to detect the concealment of illegal
				commissions, fees or other charges to a consumer. A licensee who knowingly
				participates in the granting or solicitation of loans embodying illegal fees or
				in the granting or solicitation of loans where consumers are induced by a
				person to purchase merchandise to obtain a loan shall refund the charges to the
				consumer and shall be subject to the penal provisions of the act and revocation
				of license.