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

The correct answer is interest rates, as they can be advertised alone under the Truth-in-Lending Act without the need to provide additional details. The Act requires that when certain terms are advertised—such as the interest rate, the apparent cost of credit—additional information must also be disclosed to ensure consumers are not misled.

For example, if only the interest rate is mentioned, lenders do not have to include all the other associated costs or terms of the loan. This allows lenders the flexibility to advertise attractive interest rates to draw in potential customers.

On the other hand, if terms such as loan amounts, payment plans, or down payment details are included in advertising, the Truth-in-Lending Act mandates that additional disclosures must be provided, such as the annual percentage rate (APR) and other relevant loan terms. This requirement is intended to protect consumers by ensuring they receive a full picture of costs associated with financing, promoting transparency and informed decision-making.