Gas Card Giveaway for Qualified Loans

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Question:

Our marketing group wants to give away a $25 gas card for all car loans opened during a promotion. They then want all new loans to qualify for a $250 gas card. How do i need to treat this? Can I just draw for the $250 gas card from the new loans, or is this considered a drawing open to everyone?

Answer:

It's a sweepstakes and your state law will say you need to open it to the public, not only to borrowers, so you have to have a "no purchase necessary" method for entering the drawing/sweepstakes.

First published on BankersOnline.com 3/31/08