Under TILA, if any finance charge or other charges are set forth in an advertisement, what must also be clearly stated?

Under TILA (Truth in Lending Act), when any finance charge or other charges are disclosed in an advertisement, it is required that certain additional information must also be clearly stated to ensure that consumers have all necessary information to make informed decisions. The correct answer pertains to the need for the advertisement to include any periodic rate that may be applied, expressed as an APR (Annual Percentage Rate).

This requirement ensures that consumers can compare different financing options accurately since the APR reflects the true cost of borrowing over the term of a loan, including any associated fees. Clarity regarding the periodic rate is essential for transparency and helps in protecting consumers from misleading advertisements where only partial or unclear information about the cost of credit is presented.

While other options refer to charges or fees that may apply, they do not fulfill the specific regulatory requirement set forth by TILA regarding the mandatory disclosure of the APR alongside any advertised finance charges.