Finance Charges


Also found in: Legal.

Finance Charge

The cost of obtaining financing, especially through debt. Often it refers to the interest one must pay, expressed as the annual percentage rate. See also: Cost of capital.

Finance Charges

Amounts paid for the privilege of making purchases on a deferred-payment basis.
References in periodicals archive ?
The policy reason for mandating a delay in the imposition of finance charges from the date of the credit extension to the date of posting is unclear because the consumer received the benefit of the credit extension on the earlier date.
Using an average daily balance method of calculating finance charges instead of the two-cycle method.
I was stunned and shocked to see finance charges in my May statement.
And that privilege cost consumers $65 billion in finance charges with the lending as the only beneficiaries.
The Code (i) prohibits lenders from charging interest of more than 36% per annum interest, (ii) allows a flat fee not exceeding $33, and (iii) prohibits lenders from using multiple agreements to obtain more finance charges than would otherwise be permitted.
For many years, bank credit card operations were only marginally profitable, despite interest rates comparable to those on store cards, as start-up and operating costs per dollar of receivables were relatively high and a sizable proportion of cardholders remained "convenience users," paying balances in full each month and thereby avoiding finance charges.
Finance charges for factoring can range from as little as 2.
The bill also would add a new section to the Truth in Lending Act to require "prompt" refund of unearned finance charges and insurance premiums when any consumer credit transaction is prepaid; prohibit the use of the "Rule of 78s" method for calculating the amount of finance charges to be rebated in prepayments of precomputed loans, and instead require the use of the actuarial method or another method that is as favorable to the consumer; and require that a disclosure of the amount due on any precomputed loan be provided on the consumer's request.
The Indiana Uniform Consumer Credit Code (i) prohibits lenders from charging interest of more than 36% per annum interest, (ii) allows a flat fee not exceeding $33, and (iii) prohibits lenders from using multiple agreements to obtain more finance charges than would otherwise be permitted.
As a part of Group One, series 2006-3 will share excess finance charges and principal collections with other Group One series.
Program Allows Lower Finance Charges Across the Board
By using the new United Travel Card, our frequent fliers will enjoy the pleasure of traveling now while having up to 90 days to pay without any finance charges," said David Keenan, managing director-Partnership Marketing, United.

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