www.GADA.com | 95 3. The amount of any payment; OR 4. The amount of any finance charge. If any one of the above terms is stated in the advertisement, then all of the following terms must also be stated in immediate proximity to the “trigger term”: 1. The amount or percentage of the down payment; 2. The terms of repayment; AND 3. The annual percentage rate, using that term, and, if the rate may be increased after consummation, that fact.10 When disclosing these terms in accordance with TILA, it will be necessary to include a statement regarding fees imposed by the government. Since tax, tag, title, and WRA fees are not included in the calculation of the financing, they should be stated separate from the finance terms (see examples below), clearly and conspicuously, and in immediate proximity to the financing disclosures. In those instances in which multiple vehicles are advertised and where all the financing terms are identical, this office will consider acceptable an example of a representative vehicle transaction containing all required disclosures, rather than a full disclosure on each and every vehicle in the advertisement. When advertising special payment plans that involve “balloon,” “graduated,” or “deferred” payment terms or programs of a similar import, the terms must be properly and clearly disclosed. It is acceptable to qualify offers of credit with the statement “with approved credit.” “No Money Down” Advertising While use of terms such as “no money down” and “no down payment” are permissible under the federal Truth in Lending Act, they should only be used in those instances in which consumers may take delivery of vehicles with no out of pocket expenses. If the consumer is required to pay any money whatsoever to the dealer or lien holder, including, but not limited to, first month’s payment or any other dealer fees, then such claims may not be used. A consumer may be required to pay government fees, such as tax, tag, title, or Georgia Lemon Law fees, and still be considered to have purchased the vehicle for “no money down,” so long as those amounts are actually collected by or on behalf of the government. Disclosing non-government fees/payments elsewhere in the advertisement will not cure a violation. Consumer Leasing Act/Truth in Leasing The purpose of the disclosures required by the Consumer Leasing Act is to “ensure that lessees of personal property receive meaningful disclosures that enable them to compare lease terms with other leases and, where appropriate, with credit transactions; to limit the amount of balloon payments in consumer lease transactions; and to provide for the accurate disclosure of lease terms in advertising.”11 Whenever an advertisement for the lease of a vehicle states certain terms, then other disclosures must be made in the immediate proximity of the initial term. The following are terms used in conjunction with leases for which other terms must be disclosed: 1. The amount of any payment; or 2. A statement of any capitalized cost reduction or other payment prior to or at consummation or by delivery, if delivery occurs after consummation. If any one of the above terms is stated in the advertisement, then all of the following terms must also be stated in immediate proximity to the initial term: 1. That the transaction advertised is a lease; 2. The total amount due prior to or at consummation or by delivery, if delivery occurs after consummation; 3. The number, amounts, and due dates or periods of scheduled payments under the lease; 4. A statement of whether or not a security deposit is required; and 10 12 C.F.R. § 226.24(c) (2007). 11 12 C.F.R. § 213.1(b) (2007).
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