Written By: Karen Deis
Listening to the radio the other day, I heard an ad from a mortgage lender advertising an interest rate! The rate was mentioned at least 5 times in the 30-second commercial. The rate was comparable with other rates out there. The troubling part? It was one of the biggest lenders in the country--your competitor--who I'm sure has a huge team of attorneys!
WHAT WAS MISSING WAS THE REG Z disclosure--and yes, it applies to written ad, TV and radio, too. One of my competitors was a large bank and they did not comply with REG Z. Their written ad had a great rate, but no disclosure that it was an ARM. I sent them a letter (return receipt) giving them the rule and the copy of the ad and asked them to change it. They did not. I reported it to the State's consumer division, and the FTC! They changed it.
Why did I do that? Because I wanted to level the playing field...if I had to disclose the terms and conditions, then the big boys had to play by the same rules. Are your competitors violating Reg Z?
Here's the challenge to you -
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