If the only prepaid FC is $16. and we didn't factor it in in our ad disclosure, would we be out of the tolerance. Ad says 6.00 APR, 360 pmts at $6.00 per $1000. To check I used OCC calculator.
If I use $984 amount financed I get 6.152%. If I use 99,984. financed, I get 6.0085. Why is it different?
Can someone explain this.
Thank you

The difference comes in because the $16 1.6% of the loan amount on a $1000 loan, but only .016% of the $100,000 loan. Remember that APR represents the cost of the credit expressed as a percentage, which means that it represents a ratio of the loan amount.

I understand the why now, but how do I advertise the correct APR if without knowing the loan amount. If I say 6.00% APR - 360 pmts. @ $600.00 (100,000. loan)it's correct.
If I say 6.00% - 360 pmts. @ $6.00 (1,000. loan) it's wrong. The APR s/b 6.158 and it's over the tolerance. I'd rather have the ad APR at 6.00%. Should I use a payment example based on a larger loan amount instead or $1,000?

You're required to use a typical extension of credit to calculate the APR for advertising purposes. So, if 100,000 is typical, use it. If not, you need to reflect the APR for a truly typical loan amount.