I can't seem to find anything in the regs that prohibits a printed ad (or web site) from stating "prime + 1/2" but you can't quote this to consumers. Here's what the Reg says:
§226.26 Use of annual percentage rate in oral disclosures.
(a) Open-end credit. In an oral response to a consumer’s inquiry about the cost of open-end credit, only the annual percentage rate or rates shall be stated, except that the periodic rate or rates also may be stated. If the annual percentage rate cannot be determined in advance because there are finance charges other than a periodic rate, the corresponding annual percentage rate shall be stated, and other cost information may be given.My gut tells me you should state the APR for the Home Equity line or not give any rate information. Does everyone know what the prime rate is? Now, if you do quote the APR, you then trigger several things as outlined in 226.16(d).
[This message has been edited by David Dickinson (edited 07-13-2001).]