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Advertising of Cost of Credit

Section 61 of the CPA sets out the disclosure required in advertising credit agreements.

When the advertisement offers financing to purchase a vehicle and discloses the interest rate or the amount of the payment by the borrower, the following must also be disclosed:

  1. Annual percentage rate (must be displayed as prominently as the most prominent of the interest rate or monthly payments).
  2. Length of the term.
  3. Cash price of the vehicle (if applicable) and the “cost of borrowing,” unless:
    1. The only element of cost of borrowing is interest.
    2. The advertisement is broadcast on radio or television, displayed on a billboard or bus board, or made through any other medium with similar time or space limitations.