Anthem
Compliance Question of the Week
July 17, 2012
July 17, 2012
Is there a quick reference I can use for advertising compliance?
Lending Ad cheat sheet
- Is it open end?
- Are all the terms you advertise actually available?
- Are rates stated as APR?
- Does it have a trigger term?$@
- Did you include the trigger disclosures?
- Is a minimum periodic payment mentioned?
- Did you include the minimum payment disclosures?
- Do you refer to an APR as fixed?
- Did you state a term?
- Did you mean it?
- Did you consider fair lending?
- Is it a HELOC?
- Does it have a HELOC trigger term?$@
- Did you include the trigger disclosures?
- Did you refer to the money as free or similar?
- Did you state that the interest may be tax deductable?
- Does the ad state that amount advanced can exceed FMV?
- Did you include tax disclosures?
- Is there a promotional payment or rate?*
- Do you have the time period stated close by?
- Do you have the amounts and time periods of the payments under the plan? (payment promotion only)
- Do you have information about APRs that will apply under the plan? (rate promotion only)
- Did you consider fair housing act?
- Is it non-home secured open end credit?
- Is there a promotional rate or fee?*
- Is it an introductory rate/fee?
- Do you state intro or introductory at each mention?
- Do you have when the promotion will end?
- Do you have what the APR will be when the promotion will end? (rate promotion only)
- Do you have the fee that will apply when the promotion will end? (fee promotion only)
- Is there a deferred interest mentioned?*
- Did you state the period of the deferred interest?
- Is ‘no interest’ or similar mentioned?
- Did you include ‘if paid in full’ in immediate proximity to each mention?
- Did you include a statement about the interest being charged from the date of transaction if it is not paid in full within the period?
- Did you include a statement about the interest being charged from the date of transaction if the member goes into default (if applicable)?
- Is it closed end?
- Does it state only those terms that will be offered?
- Are rates stated as APR?
- Simple rate may be used, but member has to be able to see both simple and APR
- Can the APR increase after consummation?
- Must say so
- Does it include trigger terms?$@
- Do you have trigger disclosures?
- Did you think about fair lending?
- Is the loan secured by a dwelling?
- Is any payment amount stated?#*
- Do you include the amount of each payment, including balloon payments?
- Do you include the period of time for each payment?
- Is the loan secured by a first lien?
- Do you include the fact that payments do not include taxes and insurance?
- Does the ad state a simple rate, and more than one rate will apply?#*
- Do you include each rate that will apply?
- Do you include the period of time for each rate?
- Do you include the APR?
- Does the ad state that the loan may exceed the FMV of the dwelling?
- Did you include the tax disclosures?
- Did you use the term ‘fixed’ referring to rates?
- Is the rate variable?
- Did you include the variable language?
- Did you include the period where the rate is fixed?
- Will the rate increase (such as via a stepped interest mortgage?)
- Did you include the period the rate is fixed for?
- Did you include a statement that the payment will increase?
- Do you compare payments on your loan with those of another loan?
- You didn’t compare to payments that are not available for the full term of the loan did you?
- Do you state the loan is part of a government program?
- Is it really?
- Do you use the member’s current lender’s name?
- Is your name equally prominent?
- Do you state that you are not acting with or on behalf of the other lender?
- Do you say the mortgage will eliminate debt?
- Bad marketer
- Is your entire ad in the same language?
- If not, why not?
- Did you think about fair housing act?
Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.
Posted in Compliance News, Events.