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Loan APR Discount

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Question: 
When advertising an APR discount on a loan product, do you have to specify which loans qualify for the discount? For example: Save .50% APR on Green auto loan rate. Do you need a footnote to define "Green"? Thanks
Answer: 

You would think that in today's environment one would know what you mean by "Green," but what do you do if I want that .50 discount on that green Dodge Charger with a 360 in it that only gets about 12 miles per gallon? After all, it's a "green" auto and you said a .50 discount for loans on green autos. Believe me, you'll get some character that will try that. I'm not saying you have to define it, just pointing out what may happen if you don't.

First published on BankersOnline.com 11/03/08

First published on 11/03/2008

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