Marketing wants to do a mailer to advertise our HELOC promo rate. I've advised them that they will have to state the promo APR, as well as how long the promo is offered, and the go to rates (we have 2 possible depending on LTV), all in close proximity and equal prominence to the promo rate. Of course, they're saying other banks aren't doing this, which I can't speak for.

Am I correct, or is there an exception or allowance to disclose differently that I'm missing?

Ask them what part of this do they not understand.

1026.16(d)(2) Discounted and premium rates. If an advertisement states an initial annual percentage rate that is not based on the index and margin used to make later rate adjustments in a variable-rate plan, the advertisement also shall state with equal prominence and in close proximity to the initial rate:

(i) The period of time such initial rate will be in effect; and

(ii) A reasonably current annual percentage rate that would have been in effect using the index and margin.

And don't forget 1026.16(d)(6)(ii) also.

Thanks for confirming what I've told them, Randy. I sent them the regulation and highlighted the citation. If only it were that easy!

I used to hear this all the time:

"Of course, they're saying other banks aren't doing this"

My response to them at that point was always - "show me". If they did, then a friendly call was placed to that bank's compliance officer and if that did not yield any results, a copy of the ad was then forwarded to their primary regulator.

Other banks breaking the rules leads to competitive disadvantages. 95% of the time - nobody could "show me" anything.