Questions and Answers
Are there rules that govern how we respond orally to a consumer inquiry about loan costs?
Yes. Truth-in-Lending and Regulation Z require that you disclose costs as the annual percentage rate any time you are orally responding to a consumer’s inquiry. As long as you mention the annual percentage rate, you are also allowed to mention the periodic rate (in open-and credit) or the simple interest rate (in closed-and credit) that is applied to the balance.
(Posted: 06/24/2008)
