Loan advertising

Credit institutions broadcast advertising messages on loans in audio-visual, oral or written form, through different means, such as television, radio, the internet or emails sent to customers.

Loan advertising must comply with general principles applicable to the advertising of financial products and services and rules specific to those products.

 

General principles applicable to the advertising of financial products and services

Advertising of financial products and services should be:

  • Transparent – the omission of information necessary for the correct evaluation of the highlighted characteristics of financial products and services is not allowed. This information may include, in particular, the conditions of access to the products and services advertised (for example, loyalty for a minimum period), or restrictions and limitations (for example, limits on the amount that customers can apply in a deposit);

  • Balanced – information on conditionsof access, restrictions or other limitations, considered necessary in each case, so that bank customers can correctly evaluate the characteristics that credit institutions highlight in the advertising, should have a prominence similar to that of the characteristics;

  • Identifiable – the identity of the credit institution responsible for the financial products or services advertised must be unambiguous;

  • True – the information presented by credit institutions in advertising their financial products or services should respect the truth and not misrepresent the facts.

 

Specific rules for the advertising of home loans

In advertising home loans and other mortgage loans, credit institutions should:

  • Indicate the corresponding annual percentage rate of charge with similar prominence of the outstanding characteristics of those products;

  • Provide a representative example of the annual percentage rate of charge including, in particular:

    • The annual nominal interest rate, indicating whether it is fixed, variable or a combination of both, together with the indication of any applicable charges included in the total cost of the loan for the bank customer;

    • The identification of the reference rate used and the respective amount;

    • The interest rate spread, if applicable;

    • Where applicable, the grace period or the percentage of deferred capital;

    • The total amount charged to the consumer;

  • Calculate the reference rate, at least at the beginning of the advertising campaign and whenever it is resumed, after an interruption;

  • If the home loan advertisement announces an instalment, indicate, with similar prominence, the repayment term and the amount of the loan to which the instalment refers.

 

Specific rules for the advertising of consumer credit

When advertising consumer credit, credit institutions should:

  • Indicate the corresponding annual percentage rate of charge with similar prominence to the outstanding characteristics of those products;

  • Present a representative example that includes at least the loan amount, the repayment term, the annual nominal interest rate (in the case of a fixed rate), or the reference rate and the spread (in the case of a variable rate);

  • Calculate the reference rate, at least at the beginning of the advertising campaign and whenever it is resumed, after an interruption, indicating the month to which it refers;

  • In the event that the advertising announces a consumer credit with fixed instalments, indicate, with similar prominence, the following elements:

    • The repayment term of the loan;

    • The amount of funding.