Finance charge


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Finance charge

The total cost of credit a customer must pay on a consumer loan, including interest.

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 charge.

The finance charge, or total dollar amount you pay to borrow, includes the interest you pay plus any fees for arranging the loan.

A finance charge is expressed as an annual percentage rate (APR) of the amount you owe, which allows you to compare the costs of different loans.

The Truth-in-Lending Law requires your lender to disclose the APR you'll be paying and the way it is calculated before you agree to the terms of the loan.

finance charge

The total of all direct and indirect costs associated with obtaining credit.
References in periodicals archive ?
Credit unions and subprime banks tend to use a percentage of total statement balance including finance charges; large issuers overwhelmingly use a percentage of total statement balance excluding finance changes and then add the finance charge to the minimum payment due, it explained.
85, including the unjustified finance charges, as per the following statement received on February 12, well within the due date of March 9, I registered a finance charge reversal request.
In this case, the cost of the initial loan is a $15 finance charge and a whopping 391 percent APR.
As a part of Group One, subseries 1 will share excess finance charge and principal collections with other Group One series.
The daily periodic rate of finance charge for each billing cycle shall be a rate computed by adding a margin ('Margin For Cash Advances') to the value of the index and dividing by 365.
The rep said, ``The late finance charge was misposted to your account by mistake,'' and apologized.
To facilitate the Congress's study of the central issues of reform, our report focuses on four broad policy questions concerning closed-end home-secured loans: the effectiveness of the finance charge and the APR (a TILA question), the reliability of settlement cost disclosures (a RESPA question), the timing of disclosures (both), and substantive protections to target abusive lending practices (both).
Factoring good, ready source of cash, but if you rely on it totally, the finance charge could slowly eat into your profits.
The average tax refund of $2,150 would carry a finance charge of $100, or about 178% APR
Typically, a factor will buy or advance 70%-80% of the money due on a receivable and in turn assess a finance charge or "discount" (LaPaglia suggests 4%-5% as a benchmark) on the total amount of the receivable.
The bill would also amend the Truth in Lending Act to regulate "lock-in" agreements by making a creditor's commitment to a finance charge a requirement of the law, unless the creditor clearly discloses that the offered finance charge is subject to change.

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