Solved

Nearly Insolvent Savings & Loan (NISL)recently Ran a Newspaper Advertisement

Question 60

Multiple Choice

Nearly Insolvent Savings & Loan (NISL) recently ran a newspaper advertisement that read as follows: "Unsecured open-end credit lines (maximum $15,000) now available to consumers.Borrow against your line as you need money.Your minimum monthly payment to NISL? Only $25." Which of the following is a legally accurate statement about this advertisement?


A) The advertisement complies with the Truth in Lending Act in word and in spirit.
B) The Truth in Lending Act does not apply,because NISL would be extending consumer credit in an amount that exceeds the ceiling set forth in the statute.
C) The Truth in Lending Act does not apply,because NISL would be extending credit for consumer uses rather than for commercial uses.
D) The advertisement's failure to state the annual percentage rate (APR) is a reason why the advertisement violates the Truth in Lending Act.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents