No, we are not aware of any Illinois law that would require your bank to use the phrase “subject to credit approval” in an advertisement for loan pre-approvals, but it may be prudent to use this phrase (or similar language) to avoid potential claims that your advertisement is deceptive.

Under the Illinois Consumer Fraud and Deceptive Business Practices Act, deceptive acts or practices include the use of false promise, misrepresentation or the concealment or omission of a material fact with the intent that others rely on the concealment or omission. Under the federal Consumer Financial Protection Act, deceptive acts include representations or omissions likely to mislead a consumer. An individual who does not qualify for preapproval may claim they were deceived by an advertisement that omitted the fact that their eligibility for a preapproval would be subject to a credit check. Using a phrase like “subject to credit approval” should mitigate this risk.

For resources related to our guidance, please see:

• Illinois Consumer Fraud and Deceptive Business Practices Act, 815 ILCS 505/2 (“Unfair methods of competition and unfair or deceptive acts or practices, including but not limited to the use or employment of any deception fraud, false pretense, false promise, misrepresentation or the concealment, suppression or omission of any material fact, with intent that others rely upon the concealment, suppression or omission of such material fact, or the use or employment of any practice described in Section 2 of the ‘Uniform Deceptive Trade Practices Act’, approved August 5, 1965, in the conduct of any trade or commerce are hereby declared unlawful whether any person has in fact been misled, deceived or damaged thereby. In construing this section consideration shall be given to the interpretations of the Federal Trade Commission and the federal courts relating to Section 5 (a) of the Federal Trade Commission Act.”)

• Consumer Financial Protection Act of 2010, 12 USC 5536(a) (“It shall be unlawful for (1) any covered person or service provider . . . (B) to engage in any unfair, deceptive, or abusive act or practice.”)

• CFPB Supervision and Examination Manual, UDAAP Section (“A representation, omission, act or practice is deceptive when (1) The representation, omission, act, or practice misleads or is likely to mislead the consumer; (2) The consumer’s interpretation of the representation, omission, act, or practice is reasonable under the circumstances; and (3) The misleading representation, omission, act, or practice is material.”)