Credit: Advertising to Personal Consumers 

CLARIFICATION OF SCOPE

Consumer Credit, Payment Services and Electronic Money

  1. Where regulated entities are providing credit under credit agreements which fall within the scope of the European Communities (Consumer Credit Agreements) Regulations 2010 (S.I. No. 281 of 2010), the Provisions in this Chapter do not apply.
  2. Where regulated entities are providing payment services and/or issuing electronic money, only Provisions 9.1 to 9.18, 9.30 and 9.31 apply.

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CREDIT: ADVERTISING TO PERSONAL CUSTOMERS (9.19 -9.29) 

9.19         
A regulated entity must ensure that an advertisement for a residential mortgage contains the following warning statement: 
 

Warning:
If you do not keep up your repayments you may lose your home.


9.20
A regulated entity must ensure that where an advertisement includes an annual percentage rate, the advertisement must clearly state if the interest rate is fixed or variable.  In the case of a fixed interest rate, the term of the fixed interest rate must be displayed and an indication must be given of the rate that will apply thereafter.

9.21
         
A regulated entity must ensure that an advertisement for a term loan, if displaying the annual percentage rate and the term, also displays the total cost of credit by means of an example.  This provision does not apply to the provision of loans for mortgage credit.  

9.22         
A regulated entity must ensure that an advertisement for a fixed-rate loan contains the following warning statement: 

Warning:
You may have to pay charges if you pay off a fixed-rate loan early.


9.23
         
A regulated entity must ensure that an advertisement for personal lending contains the following warning statement:

Warning:
If you do not meet the repayments on your loan, your account will go into arrears.  This may affect your credit rating, which may limit your ability to access credit in the future.


9.24
         
A regulated entity must ensure that advertisements for the consolidation of two or more debts, where sample figures are offered in the advertisement, indicate the difference between the total cost of credit of the consolidated credit facilities and the total cost of credit of the individual credit facilities that are the subject of the consolidation.

9.25         
A regulated entity must ensure that an advertisement for a debt consolidation mortgage contains the following warning statement:

Warning:
This new loan may take longer to pay off than your previous loans. This means you may pay more than if you paid over a shorter term.


9.26
       
A regulated entity must ensure that an advertisement for a variable-rate mortgage contains the following warning statement:

Warning:
The cost of your monthly repayments may increase.


9.27
         
A regulated entity must ensure that an advertisement for an interest-only mortgage contains the following warning statement: 

Warning:
The entire amount that you have borrowed will still be outstanding at the end of the interest-only period.


9.28
         
A regulated entity must ensure that an advertisement for a lifetime mortgage contains the following warning statements:  

Warning:
While no interest is payable during the period of the mortgage, the interest is compounded on an annual basis and is payable in full in circumstances such as death, permanent vacation of or sale of the property.

 and;  

Warning:
Purchasing this product may negatively impact on your ability to fund future needs.

9.29
A regulated entity must ensure that an advertisement for a home reversion agreement contains the following warning statements:

Warning:
The money you receive may be much less than the actual market value of the share in your home.

 and;    

Warning:
Purchasing this product may negatively impact on your ability to fund future needs.