Sample Mortgage Advertisements are Shown Below – Can You Spot the Issues in these Ads?
These Ads are Being Shown Not Because They are “Right” or Proper …..
Rather These Ads are “Wrong” – Can You Find the Mistakes in these Ads?
SAMPLE DEBT CONSOLIDATION ADVERTISEMENT
123 South Street
Springfield, IL 08222
A loan of up to One Hundred Thousand Dollars and 00/100 $100,000.00
John H. Jones
When your Home Loan with Bank of America funded, you became eligible to receive a $100,000 CASH ADVANCE (or more) with no Equity Limitation. Our unique 1-2-3 EXPRESS Loan requires merely one 5 minute phone call from you, then we can do the rest!! Receiving our loan is EZ as 1-2-3, it’s just that easy! Follow these three simple steps to receive your funds:
1) CALL US TO INITIATE THE LOAN,
2) TAKE 5 MINUTES VERIFYING THE FACTS WITH US,
3) HAVE LOAN DOCUMENTS DELIVERED TO YOU!!HERE ARE JUST SOME OF THE ADVANTAGES OF OUR 1-2-3 EXPRESS LOANS:
|*NO EQUITY LIMITATION||*PAY OFF AN EXISTING SECOND|
|* NO APPRAISAL||*NO INCOME DOCUMENTATION|
|*LOWEST CREDIT SCORES QUALIFY||*FUNDS IN 7 TO 10 DAYS|
YOU MAY USE OUR CASH PROCEEDS FOR ANY PURPOSE AT ALL. NO STRINGS ATTACHED
YOUR ELIGIBILITY EXPIRES JANUARY 20, 2005, WE HAVE LIMITED FUNDS AVAILABLE FOR
THIS PROGRAM. YOU WILL NOT BE CONTACTED AGAIN.
FOR MORE INFORMATION CALL TODAY!!!
OR VISIT OUR SECURE WEBSITE AT www.montymortgage.com and SAVE!!*
Discussion regarding Sample Debt Consolidation Advertisement
Weaknesses of this ad:
Ad has a simulated check which is not permitted in a few states.
Exclusions on the “no equity limitations” are not explained – ad should state the maximum loan to value (such as 100% or 125% maximum LTV (loan to value)) allowed and any other restrictions on such loan program.
Ad does not really have any trigger terms so additional disclosures under the Truth in Lending Act are not required. Nonetheless, it would be better if the ad provided more detail about the terms of the $100,000 loan being offered. Is it a fixed rate program or it is a variable rate program, etc.
Ad mentions a current loan held by Bank of America but does not have the required disclosures to explain that Monty Mortgage is not associated with Bank of America.
Ad mentions “Consult your tax advisor” but makes no reference to a statement regarding tax deductibility of the interest on the loan. As such, such reference to “consult your tax advisor” is unnecessary.
Strengths of this ad:
The Strengths of this ad are discussed more fully in our training materials.