In terms of the right of rescission, is an APR of 4.4% disclosed when the actual APR is 4% considered accurate?

The correct answer emphasizes the concept of a reasonable tolerance in the disclosure of the APR. Under the Truth in Lending Act (TILA), lenders are required to provide accurate information about the cost of borrowing, including the Annual Percentage Rate (APR). However, the regulations also allow for a certain degree of variation in disclosures.

In this case, the disclosed APR of 4.4%, compared to the actual APR of 4%, represents a deviation of only 0.4%. This difference is typically considered minor and within acceptable limits defined by regulatory standards. As a result, the disclosure is seen as accurate because it does not lead to sufficient confusion or misrepresentation that would adversely affect the borrower's decision-making process regarding the loan.

Therefore, the statement that the difference is acceptable supports the idea that minor discrepancies, especially those falling within established thresholds, do not violate the principles of TILA, allowing the disclosed APR to be considered accurate in this context.