“Teaser Rate Law and Legal Definition: A Teaser Rate is an interest rate, which is low. It is generally an adjustable introductory interest rate advertised for a loan, credit card, or deposit account in order to attract potential customers to obtain the service. The teaser rates are normally too good to be true for the long term, and are far below the common realistic rate for the service. In a competitive market, many companies will compete with each other for the lower teaser rate. Typically, the teaser rate is 0%. The teaser rate is only temporary. After its expiration, the rate increases to a normal or much higher than normal rate.“
Anyone know anything or have experience with these (if you are willing to share)?
They’ve been legal? Still legal? Is there a reason why they shouldn’t be illegal?