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Spelling Out APR: It's Required

Answered by: 
Richard Insley

Question: 
We have a vehicle dealer from whom we are considering buying contracts. In the fed box of their note/contract, the APR is disclosed as "ANNUAL % RATE". Is it required that % be spelled out or is this sufficient? It's spelled out in Reg Z but I'm not sure if that means it absolutely must be
Answer: 

Section 226.18(e) looks crystal clear to me:
'(e) Annual percentage rate. The "annual percentage rate," using that term, and a brief description such as "the cost of your credit as a yearly rate." ' When advertising the APR, the abbreviation "APR" is allowedbut that's as far as it goes.

First published on BankersOnline.com 7/15/02

First published on 07/15/2002

Filed under: 
Compliance
Filed under compliance as: 
Advertising
IT

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