How is it that credit cards are allowed to quote an APR of 0.0% for a teaser 12 months or another length of time when they are charging a 3% fee to advance any funds against the account?
The Truth in Lending Act and Regulation Z allow open-end credit plans (credit cards, home equity lines of credit and other revolving credit accounts) to disclose an annual percentage rate (APR) that is a simple multiple of their periodic interest rate, as long as they disclose separately their fees.
BankingQuestions.com is a free service made possible by the generous support of our advertisers. Advertisers are not responsible for site content. Please help us keep BankingQuestions.com FREE by supporting our advertisers. When you see an ad for a product or service you may have an interest in, click through to learn more.
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
The Truth in Lending Act and Regulation Z allow open-end credit plans (credit cards, home equity lines of credit and other revolving credit accounts) to disclose an annual percentage rate (APR) that is a simple multiple of their periodic interest rate, as long as they disclose separately their fees.