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#2261334 - 10/20/21 09:18 PM Cash Discounts vs Disclosing the Cost of Credit
CU3840 Offline
Junior Member
Joined: Jun 2019
Posts: 38
Need guidance on Reg Z 1026.4(9)(b), or other regulatory requirement, on how to properly advertise a cash discount price vs financing price on an open end credit card loan.

Example, customer goes to a store and looks at a tractor advertisement tag that (for example) advertises "Model ABC $4108.97 at 0% APR for 48 months with a $125 Promo Fee OR Cash Discount Price of $3,999". Besides the full finance disclosure, is there any other regulatory requirement to disclose anything additional? Does the difference in cash price vs financing price have to be explained? Or can the merchant simply offer their own discount amount (via a percentage of regular price or set dollar amount)?

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#2261339 - 10/20/21 10:17 PM Re: Cash Discounts vs Disclosing the Cost of Credit CU3840
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,923
Galveston, TX
I am sorry but what does an open-end line of credit have to do with a tag on a tractor? Why do you care what a merchant might be doing? I guess I am unsure where you are going with this from a third party lender perspective.
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