Under Truth-in-Lending, which type of statement can be advertised alone?

In the context of the Truth-in-Lending Act (TILA), when it comes to advertising loan information, it is important to understand the distinction between specific terms and more general information. The APR, or Annual Percentage Rate, is a comprehensive measure that reflects the total cost of borrowing over the year, including the interest rate and any fees that may be required to obtain the loan.

When advertising the APR alone, it provides potential borrowers with crucial information about the overall cost of the loan without needing to include detailed terms of the loan. This allows consumers to better compare different loan offers based on the cost of borrowing rather than just the interest rate. It also adheres to the requirements set forth by TILA, which allows for the APR to be disclosed separately as long as it does not mislead or omit pertinent information regarding other loan terms.

In contrast, specific loan terms would require additional disclosures to ensure clarity and prevent deception since they often suggest particular conditions or arrangements that borrowers must understand fully. General rates of interest and welcome bonuses would also be insufficient in isolation because they often do not represent the total cost or implications of the loan fully. Thus, the APR stands out as the only type of statement that can be accurately and effectively advertised alone, providing consumers with