12 CFR §1026.24 — Advertising (closed-end credit)
Regulation Z §1026.24 governs advertising of closed-end consumer credit. Core operative duties on [LENDER]: (a) state only credit terms that are actually arranged or offered; (b) make required disclosures clearly and conspicuously; (c) state any advertised finance-charge rate as an "annual percentage rate" using that term (and disclose any post-consummation rate-increase fact); (d) where any "triggering term" (downpayment amount/percent, number of payments/period of repayment, payment amount, or finance-charge amount) appears, also disclose the (d)(2) "additional terms" (downpayment, terms of repayment over full term including balloon, APR, and rate-increase fact). For credit secured by a dwelling, (f) layers a richer rate-and-payment disclosure regime (each simple- annual-rate period, full payment schedule, balloon disclosure, PITI-not-included warning on first liens). Subsection (g) supplies a TV/radio alternative. Subsection (h) governs tax-implication statements when credit may exceed the dwelling's FMV. Subsection (i) sets seven prohibited acts/practices in dwelling-secured-credit advertising: (1) misleading "fixed" rate/payment claims, (2) misleading rate or payment comparisons, (3) misrepresentations about government endorsement, (4) misleading use of consumer's current lender's name, (5) misleading debt-elimination claims, (6) misleading use of "counselor", and (7) misleading foreign- language advertisements that mix English and non-English trigger terms / disclosures. This is the MAP-rule companion at the regulatory layer — the CFPB Advertising rule is a load-bearing UDAAP exposure for any lender doing direct-to-consumer marketing.
Verbatim regulatory text
Verbatim provisions from 12 CFR §1026.24 — Advertising (closed-end credit) — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
12 CFR §1026.24(a) — State only terms that are actually arranged or offered
Actually available terms. If an advertisement for credit states specific credit terms, it shall state only those terms that actually are or will be arranged or offered by the creditor.
12 CFR §1026.24(c) — Rate of finance charge in advertisement must be stated as "annual percentage rate"
Advertisement of rate of finance charge. If an advertisement states a rate of finance charge, it shall state the rate as an “annual percentage rate,” using that term. If the annual percentage rate may be increased after consummation, the advertisement shall state that fact.
12 CFR §1026.24(d) — Triggering terms require additional disclosures
Triggering terms. If any of the following terms is set forth in an advertisement, the advertisement shall meet the requirements of paragraph (d)(2) of this section:
12 CFR §1026.24(i)(1) — Prohibition on misleading "fixed" rate/payment claims in dwelling-secured-credit advertising
Misleading advertising of “fixed” rates and payments. Using the word “fixed” to refer to rates, payments, or the credit transaction in an advertisement for variable-rate transactions or other transactions where the payment will increase, unless:
12 CFR §1026.24(i)(3) — Prohibition on misrepresentations about government endorsement
Misrepresentations about government endorsement. Making any statement in an advertisement that the product offered is a “government loan program”, “government-supported loan”, or is otherwise endorsed or sponsored by any Federal, state, or local government entity, unless the advertisement is for an FHA loan, VA loan, or similar loan program that is, in fact, endorsed or sponsored by a Federal, state, or local government entity.
12 CFR §1026.24(i)(4) — Prohibition on misleading use of consumer's current lender's name
Misleading use of the current lender's name. Using the name of the consumer 's current lender in an advertisement that is not sent by or on behalf of the consumer 's current lender, unless the advertisement:
12 CFR §1026.24(i)(5) — Prohibition on misleading debt-elimination claims
Misleading claims of debt elimination. Making any misleading claim in an advertisement that the mortgage product offered will eliminate debt or result in a waiver or forgiveness of a consumer 's existing loan terms with, or obligations to, another creditor.
12 CFR §1026.24(i)(7) — Prohibition on misleading foreign-language advertisements
Misleading foreign-language advertisements. Providing information about some trigger terms or required disclosures, such as an initial rate or payment, only in a foreign language in an advertisement, but providing information about other trigger terms or required disclosures, such as information about the fully-indexed rate or fully amortizing payment, only in English in the same advertisement.
12 CFR §1026.24(d) — Triggering terms require additional disclosures — enumerated items (chapeau recall fix)
(i) The amount or percentage of any downpayment . (ii) The number of payments or period of repayment. (iii) The amount of any payment. (iv) The amount of any finance charge.
12 CFR §1026.24(i)(1) — Prohibition on misleading "fixed" rate/payment claims in dwelling-secured-credit advertising — enumerated items (chapeau recall fix)
(i) In the case of an advertisement solely for one or more variable-rate transactions, (A) The phrase “Adjustable-Rate Mortgage ,” “Variable-Rate Mortgage ,” or “ARM” appears in the advertisement before the first use of the word “fixed” and is at least as conspicuous as any use of the word “fixed” in the advertisement; and (B) Each use of the word “fixed” to refer to a rate or payment is accompanied by an equally prominent and closely proximate statement of the time period for which the rate or payment is fixed, and the fact that the rate may vary or the payment may increase after that period; (ii) In the case of an advertisement solely for non-variable-rate transactions where the payment will increase (e.g., a stepped-rate mortgage transaction with an initial lower payment), each use of the word “fixed” to refer to the payment is accompanied by an equally prominent and closely proximate statement of the time period for which the payment is fixed, and the fact that the payment will increase after that period; or (iii) In the case of an advertisement for both variable-rate transactions and non-variable-rate transactions, (A) The phrase “Adjustable-Rate Mortgage ,” “Variable-Rate Mortgage ,” or “ARM” appears in the advertisement with equal prominence as any use of the term “fixed,” “Fixed-Rate Mortgage ,” or similar terms; and (B) Each use of the word “fixed” to refer to a rate, payment, or the credit transaction either refers solely to the transactions for which rates are fixed and complies with paragraph (i)(1)(ii) of this section, if applicable, or, if it refers to the variable-rate transactions, is accompanied by an equally prominent and closely proximate statement of the time period for which the rate or payment is fixed, and the fact that the rate may vary or the payment may increase after that period.
12 CFR §1026.24(i)(4) — Prohibition on misleading use of consumer's current lender's name — enumerated items (chapeau recall fix)
(i) Discloses with equal prominence the name of the person or creditor making the advertisement; and (ii) Includes a clear and conspicuous statement that the person making the advertisement is not associated with, or acting on behalf of, the consumer 's current lender.