A branch manager asks about a loan file because an ad shows an interest rate but omits the APR presentation. What should happen?
Correct Answer
C) State the rate as an annual percentage rate
Lines 261-265 and 273-277; 12 CFR 1026.24(c). Closed-end credit advertising rules require the finance charge rate to be stated as an annual percentage rate. Therefore, the correct response is "State the rate as an annual percentage rate".
Why This Is the Correct Answer
Lines 261-265 and 273-277; 12 CFR 1026.24(c). Closed-end credit advertising rules require the finance charge rate to be stated as an annual percentage rate. Therefore, the correct response is "State the rate as an annual percentage rate".
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