Department of Commerce and Consumer Affairs

[OCP]

When borrowing money or applying for credit, it’s important to comparison shop first by getting full information on the credit and lease terms of different lenders.

The Truth In Lending Act prohibits “bait and switch” tactics in advertising consumer credit and leases. No advertisement may state that a specific amount of credit or a specific installment payment or a specified down payment term can be arranged, unless the creditor will actually make those arrangements. A creditor may not advertise credit or lease terms that are in fact, not available.

Whenever a “triggering” term is used in advertising credit, such as a low annual percentage loan rate, the Truth In Lending Act requires that other important facts also be disclosed, including the amount of the down payment, the number of months in which the loan must be paid, and the total amount of the loan, made up of the interest and principal. The type of transaction that’s advertised will determine what the “triggering” terms are and what disclosures must be made. In all cases, the required information in the disclosures must be made clearly and conspicuously.