15 U.S.C. § 1664 — Advertising of credit other than open end plans
submitted 58 years ago by Pub. L. 90-321 to r/title-15-COMMERCE-AND-TRADE · 324 words · no verdicts yet
This section sets advertising rules for consumer credit other than open-end plans, with a limited Bureau-regulated exception for residential real-estate advertisements. It requires annual-percentage-rate and repayment disclosures and a tax warning for certain dwelling-secured credit.
(a) Except as subsection (b) provides, this section applies to advertisements that directly or indirectly promote a consumer credit* sale, loan, or other credit extension covered by this subchapter, other than an open-end plan.
(b) It does not apply to residential-real-estate advertisements except as the Bureau* requires by regulation.
(c) If a covered advertisement states a finance-charge rate, it must state that rate as an annual percentage rate.
(d) If it states a downpayment, installment amount, finance-charge dollar amount, number of installments, or repayment period, it must also state: (1) the downpayment, if any; (2) the repayment terms; and (3) the finance-charge rate as an annual percentage rate.
(e) A covered paper or Internet advertisement for a consumer credit transaction secured by the consumer’s principal dwelling, where the credit may exceed the dwelling’s fair market value, must clearly and prominently say: (1) interest on the part exceeding that value is not deductible for federal income-tax purposes; and (2) the consumer should ask a tax adviser about deducting interest and charges.
Except as provided in subsection (b), this section applies to any advertisement to aid, promote, or assist directly or indirectly any consumer credit sale, loan, or other extension of credit subject to the provisions of this subchapter, other than an open end credit plan*.
The provisions of this section do not apply to advertisements of residential real estate except to the extent that the Bureau* may by regulation require.
If any advertisement to which this section applies states the rate of a finance charge, the advertisement shall state the rate of that charge expressed as an annual percentage rate.
If any advertisement to which this section applies states the amount of the downpayment, if any, the amount of any installment payment, the dollar amount of any finance charge, or the number of installments or the period of repayment, then the advertisement shall state all of the following items:
The downpayment, if any.
The terms of repayment.
The rate of the finance charge expressed as an annual percentage rate.
Each advertisement to which this section applies that relates to a consumer credit transaction that is secured by the principal dwelling of a consumer in which the extension of credit may exceed the fair market value of the dwelling, and which advertisement is disseminated in paper form to the public or through the Internet, as opposed to by radio or television, shall clearly and conspicuously state that—
the interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes; and
the consumer should consult a tax adviser for further information regarding the deductibility of interest and charges.
Source credit: (Pub. L. 90–321, title I, § 144, May 29, 1968, 82 Stat. 158; Pub. L. 96–221, title VI, § 619(b), Mar. 31, 1980, 94 Stat. 183; Pub. L. 109–8, title XIII, § 1302(b)(2), Apr. 20, 2005, 119 Stat. 209; Pub. L. 111–203, title X, § 1100A(2), July 21, 2010, 124 Stat. 2107.)
- 1968Enacted · Pub. L. 90-321 · 82 Stat. 158
- 1980Amended · Pub. L. 96-221 · 94 Stat. 183
- 2005Amended · Pub. L. 109-8 · 119 Stat. 209
- 2010Amended · Pub. L. 111-203 · 124 Stat. 2107
A history note hasn’t been published yet. The record shows enactment by Pub. L. 90-321 on 1968-05-29.
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