15 USC 1665b - Advertising of open end consumer credit plans secured by consumer’s principal dwelling

U.S Code last checked for updates: Nov 22, 2024

§ 1665b.

Advertising of open end consumer credit plans secured by consumer’s principal dwelling

(a)

In general

(1)

Loan fees and opening cost estimates

(2)

Periodic rates

(3)

Highest annual percentage rate

(4)

Other information

(b)

Tax deductibility

(1)

In general

(2)

Credit in excess of fair market value

Each advertisement described in subsection (a) that relates to an extension of credit that may exceed the fair market value of the dwelling, and which advertisement is disseminated in paper form to the public or through the Internet, as opposed to by radio or television, shall include a clear and conspicuous statement that—

(A)

the interest on the portion of the credit extension that is greater than the fair market value of the dwelling is not tax deductible for Federal income tax purposes; and

(B)

the consumer should consult a tax adviser for further information regarding the deductibility of interest and charges.

(c)

Certain terms prohibited

(d)

Discounted initial rate

(1)

In general

(2)

Quoted rate must be reasonably current

(3)

Period during which initial rate is in effect

(e)

Balloon payment

(f)

“Balloon payment” defined

For purposes of this section and section 1637a of this title, the term “balloon payment” means, with respect to any open end consumer credit plan under which extensions of credit are secured by the consumer’s principal dwelling, any repayment option under which—

(1)

the account holder is required to repay the entire amount of any outstanding balance as of a specified date or at the end of a specified period of time, as determined in accordance with the terms of the agreement pursuant to which such credit is extended; and

(2)

the aggregate amount of the minimum periodic payments required would not fully amortize such outstanding balance by such date or at the end of such period.

(Pub. L. 90–321, title I, § 147, as added Pub. L. 100–709, § 2(c), Nov. 23, 1988, 102 Stat. 4730; amended Pub. L. 109–8, title XIII, § 1302(a)(2), Apr. 20, 2005, 119 Stat. 208; Pub. L. 111–203, title X, § 1100A(2), July 21, 2010, 124 Stat. 2107.)

cite as: 15 USC 1665b