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Keith Whann

--Keith Whann--
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--Keith Whann--
Keith Whann
On 10/30/16, 12:51 PM

Naturally, any advertisement that deals with the extension of credit must comply with the Federal “Consumer Credit Protection Act” and “Consumer Leasing Act” and their implementing Regulations Z and M, more commonly known as the Truth in Lending and Leasing Acts. The Acts are similar in nature to the extent that they list certain “triggering terms” which, when used in an advertisement, create an obligation on the advertiser to make additional mandated disclosures in the advertisement. In addition to these federal laws, State Unfair and Deceptive Acts and Practices (UDAP) Statutes and the Administrative Rules promulgated thereunder also regulate the content of advertisements. Most UDAP Statutes provide that any material reservation, limitation or exclusion relating to the offer of a product or credit be stated in clear and conspicuous language and in close proximity to the words stating the offer. For example, when statements such as “financing for all,” “we finance everyone,” “bad credit, no credit, no problem,” or words that imply that credit is available to all applicants are used, any material terms and conditions relating to a consumer’s ability to obtain credit must also be disclosed. Remember, placing an asterisk next to an offer to refer to a footnote generally does not satisfy the close proximity requirement. Additionally, all disclosures should be set forth in such a fashion that they are easily legible, sufficiently specific, and leave no reasonable probability of being misunderstood. Advertisements that fail to disclose all material limitations or exclusions are inherently flawed and can result in a transaction being rescindable at the consumer's option.

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Asked: 10/30/16, 12:51 PM
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Last updated: 10/30/16, 12:51 PM