Business ProfileforGladden Auto Sales Inc

On March 28, 2024, BBB contacted the business regarding its use of “Credit (Guaranteed Financing)” on their website (www.@@).  The statement used is:  "We have financing options for all credit needs".

As outlined in the BBB Code of Advertising, Rule 16 “Credit (Guaranteed Financing)”:   

Offering credit to consumers comes with numerous requirements which must be met. In addition, if promising "easy credit," or "guaranteed financing" or like terms, the consumer should receive what is promised. 

16.1 Whenever a specific credit term is advertised, it must actually be available to all consumers. The federal Truth in Lending Act, as well as applicable state and provincial laws set requirements for clearly and conspicuously disclosing credit terms in the advertisement.

16.2 In the United States, advertisers should carefully review the Truth in Lending Act and Regulation Z, which implements the Act, as well as Regulation M, which covers consumer leasing. They contain important provisions that affect any advertising to aid or promote the extension of consumer credit.

16.3 Open-end credit in the U.S.
16.3.1 The requirements for advertising open-end credit under Regulation Z are complex. Therefore, advertisers are advised to consult Section 226.16 of the Regulation (12 CFR 1026.16) for details, including prescribed terminology and information that must be disclosed. Examples of open-end credit include credit cards and other forms of “revolving credit.”

16.4 Closed-end credit in the U.S.

16.4.1 Advertisers are advised to consult Section 226.24 (12 CFR 1026.24) of Regulation Z for details of closed-end credit advertising. Examples of closed-end credit include installment loans and many automobile loans.

16.4.2 If an advertisement of closed-end credit contains any of the following triggering terms, three specific disclosures must also be stated, clearly and conspicuously.

16.4.3 The triggering terms are:
The amount or percentage of any down payment;
The number of payments or period of repayment;
The amount of any payment, expressed either as a percentage or as a dollar amount; or
The amount of any finance charge.

16.4.4 The three disclosures are:
The amount or percentage of the down payment;
The terms of repayment; and
The “annual percentage rate,” using that term spelled out in full or the abbreviation “APR.” If the rate may be increased after consummation of the credit transaction, that fact must be disclosed.

16.5 Fixed credit, lines of credit and credit cards in Canada
16.5.1 In Canada, federal requirements regarding advertising credit vary depending on the product. Advertisers should consult the Cost of Borrowing Regulations set out in the Trust and Loan Companies Act, Bank Act and Cooperative Credit Associations Act for specific requirements concerning disclosure, terminology and layout conditions. These regulations cover forms of closed-end credit, such as fixed credit loans for an automobile, as well as open-end credit, including credit cards and lines of credit.

16.6 “Easy credit”
16.6.1 The terms “easy credit,” “easy credit terms,” “liberal credit terms,” “easy pay plan” and other similar phrases must be used only when:

Consumer credit is also extended to consumers whose ability to pay or credit rating is below typical standards of credit worthiness;

The finance charges and annual percentage rate do not appreciably exceed those charged to consumers who meet generally accepted standards of credit worthiness; and

The consumer is dealt with fairly on all conditions of the transaction, including the amount of the down payment, the period of repayment and the consequences of a delayed or missed payment.

16.7   “No credit rejected”
16.7.1 The words “no credit rejected,” “guaranteed financing,” “all credit applications accepted” or words of similar import can imply that consumer credit will be extended to anyone regardless of the consumer's credit worthiness or financial ability to pay. They must only be used when all credit requests are approved.

BBB Code of Advertising can be viewed at www.bbb.org/code-of-advertising.

As of April 26, 2024, the business has failed to respond to the BBB and is continuing to advertise "We have financing options for all credit needs".