Advertising Disclosures for Compliance Purposes
Review Requirement
TSG’s Compliance Department will review all customer communication for compliance with the standards described below before such items are approved for use. All customer communication should be provided to the TSG Compliance Department at least three days prior to distribution to the public or advertisement.
General Requirements
If an advertisement for credit states specific credit terms, it shall state only those terms that are or will be arranged or offered by the creditor. Rates cannot be detailed as guaranteed as the loans are subject to the lender’s review.
Advertising must be truthful, not misleading, and fair. All loan terms, products or lenders requirements must be factual. TSG will refrain from making misleading or other representations that could be easily misunderstood by the average listener, general populace, or reasonable consumer, in the general audience receiving the representation. TSG will refrain from making exaggerated claims that reasonable consumers could take seriously.
TSG will not omit material information that would be necessary to prevent its claims or practices from being misleading. Prevent visual and written imagery that creates false impressions. Promotions must be clear and understandable by the average consumer.
To the extent TSG uses phrases such as “as low as,” TSG is will provide consumers with clear insights into actual available rate ranges and provide clear disclosures that such advertisements are directed towards “well qualified borrowers” which will encompass at least 20% of its applicants.
If an advertisement states a rate of finance charge, it shall state the rate as an “annual percentage rate,” using that term. The advertisement shall not state any other rate, except that a simple annual rate or periodic rate that is applied to an unpaid balance may be stated in conjunction with, but not more conspicuously than, the annual percentage rate.
Triggering Terms
(i) The amount or percentage of any down payment.
(ii) The number of payments or period of repayment.
(iii) The amount of any payment.
(iv) The amount of any finance charge.
Triggered Disclosures: An advertisement, which includes a triggering term must also include the following as applicable:
▪ The amount or percentage of any down-payment.
▪ The terms of repayment, which reflect the repayment obligations over the full term of the loan, including any balloon payment (if any); and
▪ The “APR,” using that term, and, if the rate may be increased after consummation, that fact.
Disclosures shall be made clearly and conspicuously. Disclosures must be placed near or as close as possible to the claim to which it relates. The Click-Through Page (page the hyperlink leads to) must completely and prominently display the disclosure. The disclosure or hyperlink to the disclosure must be placed on the same screen as the claim triggering the disclosure. If scrolling through the page is necessary to view the disclosure, use text prompts or visual cues to entice the consumer to scroll down to view the disclosure.
The use of “Free,” “0%,” and “No Interest” claims require prominent disclosures. It is deceptive to claim that a product is “free” without clearly and prominently disclosing the material terms, conditions, or limitations on the offer.
TSG will not discriminate against any applicant with respect to any aspect of a credit transaction based on race, color, religion, national origin, sex (which extends to sexual orientation and gender identity), marital status, age, receiving public assistance, or exercising a right under the Consumer Credit Protection Act.
It is TSG’s policy to Allow all consumers to have an equal chance to obtain credit. TSG will not make any oral or written statement, in advertising or otherwise, that would discourage a reasonable person from making or pursuing an application for any of the prohibited reasons listed above. TSG will not advertise its services and practices in ways that would encourage some types of borrowers and discourage others for any of the prohibited reasons listed above. Advertisements should welcome and encourage business from all customers by creating and/or using advertising/marketing with diverse characteristics.
Stating a total “savings” amount by multiplying monthly payment savings over the term of their new loan. “Savings” should be stated as a monthly savings, as loan extensions could result in a borrower paying more over the course of their loan than they would by staying with their current loan.
Credit Checks
TSG obtains information about consumers received from third parties (primarily credit bureaus). Accordingly, advertising should never use the phrase “no credit checks,” “no credit needed” or any similar suggestion. TSG will obtain consent from customers regarding a hard-pull as part of the application.
Products
All ancillary information must be disclosed as optional and disclosure the cost of products. All products must be fully described and not misrepresent the coverage of VSC or MBI. Customers should always be allowed to opt out of an ancillary product prior to loan closing. Products will not be stated as “needed.” TSG will not add VSC to a loan if it overlaps with other coverage such as customer’s vehicle warranty and provides no additional benefit and should not be suggested in marketing materials. TSG will not suggest that GAP refunds from previous loans are guaranteed.
Multi-Media Disclosures
Audio disclosures must be used for audio claims. The disclosure should be made in a volume and cadence sufficient for a reasonable consumer to hear and understand it. Written disclosures must be used for written claims. A disclosure triggered by a claim or other information in an advertisement’s written text should be made in writing and not be placed solely in an audio or video clip. Visual disclosures must be displayed for a sufficient duration for the consumer to notice, read, and understand.
Pre-screening and pre-qualifications
TSG represents pre-qualification in certain solicitations. Such pre-qualification must be based on verified information provided by a credit reporting agency in response to a set of criteria from TSG for which approval will be based and must be considered as firm offers of credit (or a “prescreened offer”).
All prescreened advertising must be truthful and non-deceptive. Representations will be supported by evidence to support any claims. The claims must be from the perspective of a “reasonable consumer” and will not contain any “dark patterns” leading to consumer harm.
Testimonials
All consumer testimonials to be substantiated. A consumer offering a testimonial must be a real person, and the testimonial must reflect the honest opinions or experiences of that individual. Testimonials can use an actor relating to a real individual’s experience, but only if it discloses that the person delivering the testimonial is an actor.
Any testimonial must be either supported by adequate substantiation that most consumers will achieve results comparable to what the consumer who provided the testimonial experienced or be accompanied by a clear and prominent disclosure of what the average result is. If the consumer received compensation for providing his or her testimonial, or has some other material connection with the advertiser, that fact must be clearly and prominently disclosed in the communication.
