Advertising-12 CFR 213.7 - Prominence of Percentage Rate in Advertisements
Question
In Advertising-12 CFR 213.7, if a percentage rate is used in an advertisement, it cannot be more prominent than any other disclosure, EXCEPT:
Answers
Explanations
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A. B. C. D.A
The correct answer is C. For required disclosures in advertisements.
In advertising under 12 CFR 213.7, if a percentage rate is used in an advertisement, it cannot be more prominent than any other disclosure, except for required disclosures in advertisements. This means that if there are any mandatory disclosures that must be included in an advertisement, they may be given more prominence than the percentage rate.
For example, if a loan advertisement is required to include disclosures such as the amount of any fees, the length of the loan, or the APR, these disclosures can be given more prominence than the percentage rate.
Option A, regarding the warning regarding the limitation of the rate as a measurement of cost, is not correct. This warning must be included in advertisements where a rate is disclosed, but it does not take precedence over other required disclosures.
Option B, regarding beginning at least 3 days before and ending at least 10 days after the broadcast, is not correct either. This time period is relevant to certain types of loan advertisements, but it does not affect the prominence of the disclosures in the advertisement.
Option D, regarding an advertisement accessed in electronic form, is also not correct. The fact that an advertisement is accessed electronically does not affect the prominence of the disclosures in the advertisement.
