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Keith Whann

--Keith Whann--
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--Keith Whann--
Keith Whann
On 10/30/16, 12:51 PM

To start, any advertisement that deals with the extension of credit must comply with the Federal “Consumer Credit Protection Act” and “Consumer Leasing Act” and their implementing Regulations Z and M, more commonly known as the Truth in Lending and Leasing Acts. The Acts are similar in that they list triggering terms that create an obligation to make additional mandated disclosures in the advertisement. The triggering terms most often used by our industry include payment information and the amount of the down payment or capitalized cost reduction. These disclosures must be clear and conspicuous and in close proximity to the offer of credit. Most states have Unfair and Deceptive Acts and Practices (UDAP) Statutes and Advertising Rules that also require dealers to disclose material terms and limitations that apply with respect to an offer to sell/lease a vehicle and the consumer’s ability to obtain credit. These disclosures likewise have to be stated in close proximity to the words stating the offer. You should also be able to substantiate any claims made in your advertisements. Remember, any representations that are made in an advertisement will be judged and interpreted using a reasonable consumer standard. The use of any type, style, layout or illustration that may obscure any fact or cause an erroneous impression about the quality, usability, or prior use of the vehicle should be avoided. Finally, remember that most State UDAP Statutes and Advertising Rules require that any material statements made to a consumer concerning an advertisement be integrated into the Retail Buyers Order/Retail Lease Order for the transaction.

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Asked: 10/30/16, 12:51 PM
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Last updated: 10/30/16, 12:51 PM