N.M. Admin. Code § 12.2.4.18

Current through Register Vol. 35, No. 21, November 5, 2024

Section 12.2.4.18 - CREDIT ADVERTISING

A. The Truth in Lending Act and accompanying regulations govern credit advertising. The following are triggering terms that require certain disclosures to be made in the advertisement:

(1) the amount or percentage of any down payment (expressed as either a percentage or dollar amount);

(2) the number of payments;

(3) the amount of any payment (expressed either as a percentage or dollar amount);

(4) the amount of any finance charge; and

(5) the period of repayment (the total time required to repay).

B. If any one of the triggering terms appear, it is an unfair or deceptive trade practice to fail to clearly and conspicuously disclose in the advertisement:

(1) the amount or percentage of the down payment;

(2) the terms of repayment; and

(3) the annual percentage rate. If the annual percentage rate may be increased after consummation of the credit transaction, such as an adjustable rate loan, that fact must be disclosed.

C. If an advertisement mentions the amount of any payment, expressed as a dollar amount, that payment must be based on a sales price no less than the price required to be used under Section 21 [now 12.2.4.21 NMAC].

N.M. Admin. Code § 12.2.4.18

5-1-98; Recompiled 10/15/01