(a) Open-end credit. In an oral response to a consumer’s inquiry
about the cost of open-end credit, only the annual percentage rate
or rates shall be stated, except that the periodic rate or rates also
may be stated. If the annual percentage rate cannot be determined
in advance because there are finance charges other than a periodic
rate, the corresponding annual percentage rate shall be stated, and
other cost information may be given.
(b) Closed-end credit. In an oral response
to a consumer’s inquiry about the cost of closed-end credit, only
the annual percentage rate shall be stated, except that a simple annual
rate or periodic rate also may be stated if it is applied to an unpaid
balance. If the annual percentage rate cannot be determined in advance,
the annual percentage rate for a sample transaction shall be stated,
and other cost information for the consumer’s specific transaction
may be given.
