How do I Disclose Interest Rates in Georgia When Advertising?

Learn the laws and regulations to abide by when advertising interest rates in Georgia.

When advertising interest rates, companies in Georgia must disclose the rate available to customers, as well as any conditions the customer would have to meet in order to be eligible for the rate. In accordance with federal regulations, each lender is also required to include the annual percentage rate, or APR, which is the annual cost of the loan expressed as a percentage.

Instructions

1. State the interest rate. When you are advertising a specific interest rate, you must express the interest rate as a percentage in the ad.

2. Place an asterisk or superscript by the interest rate. This directs the reader of the ad to the disclosures and disclaimers at the bottom of the ad that provide the details under which the interest rate applies.

3. Add in the annual percentage rate. After stating the interest rate, include the annual percentage rate, which is expressed as a percentage, followed by the acronym APR.

4. Write the disclaimer and disclosures into the footnotes of the ad. At the bottom of the ad, include the details that apply to obtaining the interest rate you are advertising. Be sure to include whether the rate is promotional, and how long it is good for. If obtaining the interest rate is subject to a credit check, employment verification or any other contingencies, then the disclaimer or disclosure at the bottom of the ad must state this.

5. Failure to disclose interest rates in advertisements may lead to an investigation by the Consumer Protection Division of the Georgia Governor's Office. Consumers can also file complaints and start investigations with the office of the Georgia Attorney General and a number of other consumer protection agencies.

   Federal agencies can also intervene at a state level, so agencies such as the Federal Trade Commission, or FTC, can also investigate allegations consumers make about deceptive advertising practices when it comes to advertised interest rates.

   Deceptive advertising or failure to meet state and federal regulations can lead to fines, penalties, a prison sentence or the closing of your business---depending on the severity and extent of the claims.

References

• Consumer Protection Division of the Georgia Governor's Office: Enforcement
• FDIC: Regulation Z