Section 15. (a) Except as provided in subsection (b), this section applies to any advertisement to aid, promote, or assist directly or indirectly any consumer credit sale, loan, or other extension of credit subject to the provisions of this chapter, other than an open-end-credit plan.

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Terms Used In Massachusetts General Laws ch. 140D sec. 15

  • Annual percentage rate: The cost of credit at a yearly rate. It is calculated in a standard way, taking the average compound interest rate over the term of the loan so borrowers can compare loans. Lenders are required by law to disclose a card account's APR. Source: FDIC
  • Finance charge: The total cost of credit a customer must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge. Source: OCC

(b) The provisions of this section shall not apply to advertisements of residential real estate except to the extent that the commissioner may by regulation require.

(c) If any advertisement to which this section applies states the rate of finance charge, the advertisement shall state the rate of that charge expressed as an annual percentage rate.

(d) If any advertisement to which this section applies states the amount of the down payment, if any, the amount of any installment payment, the dollar amount of any finance charge, or the number of installments or the period of repayment, then the advertisement shall state all of the following items:

(1) The down payment, if any;

(2) The terms of repayment; and

(3) The rate of the finance charge expressed as an annual percentage rate.

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