Finance charge

New York DFS Concludes Two Consent Orders Related to Dealer Finance Charges | Ballard Spahr LLP

After announcing many years ago that it intended to resume with a fair application of lending in the indirect auto finance market where the CFPB left off, the New York Department of Financial Services has announced two consent orders with smaller New York chartered banks based on the allegation that allowing auto dealers to negotiate […]

Finance charge

Illinois Legislature Adopts New “All-In” Financial Expense Cap | Ballard Spahr srl

On January 13, 2021, the Illinois legislature overwhelmingly passed SB 1792 (the “Act”), intended, among other things, to revise state consumer credit laws. Described before enactment as a bill relating to “Energy storage systemsSB 1792 passed, along with other major bills, with remarkably little debate. The inclusion by the editors of “Predatory Loan Prevention Act“In […]

Finance charge

What is a financial burden and how can you avoid paying one? | Credit card

Borrowing money generally costs money, and credit cards are no exception. One of the advantages of having a credit card is that you don’t have to pay off your balance every month. But this benefit comes at a price, called finance charges. Credit card finance charges include interest and transaction fees charged on the money […]

Finance charge

Definition of total financial charges

What is the total finance charge? Finance charges are the total amount of money a consumer pays to borrow money. This can include credit on a car loan, credit card, or mortgage. Ongoing finance charges include interest rates, set-up charges, service charges, late fees, etc. The total finance charge is typically associated with credit cards […]

Finance charge

Definition of prepaid financing fees

What is a prepaid finance charge? The term prepaid finance charge refers to an upfront cost associated with a loan agreement and must be paid in addition to standard loan payments. These expenses are not part of the amount requested and are considered prepaid. These expenses are usually paid by the borrower when closing a […]

Finance charge

Definition of financial charges

What is a financial charge? Finance charges are fees charged for using a loan or extending an existing loan. This can be a fixed fee or a percentage of borrowings, with percentage-based finance charges being the most common. Finance charges are often an overall cost, including the cost of carrying the debt as well as […]