APRs Quoted over the Phone

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Question:

Where does it say that if we quote a loan rate to a customer over the phone that we have to use the APR? We often have fees added to loans and quoting the rate is easier.

Answer:

Look at Reg. Z, Section 226.26 for a specific section requiring the APR when oral disclosures are made. If you can't quote the precise rate, you can have a table of examples to use. You should ensure these are accurate and meaningful to the question.

First published on BankersOnline.com 9/11/06