While I fully appreciate that the finance charge
reversal request is subject to the bank's approval, I feel that rejecting the reversal request for an unjustified finance charge
of more than 10 per cent of the due amount for a delay of payment in two days, that too during public holidays, is unreasonable.
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.
In this case, the cost of the initial loan is a $15 finance charge
and a whopping 391 percent APR.
May 22 -- The Assembly Insurance Committee has released legislation for future floor vote that would limit finance charges
on insurance premiums at $20 per $100 for personal, family, or household policies.
The Truth in Lending Act requires creditors to compute finance charges
based on your average daily balance.
However, I'm still not satisfied with their explanation on how they calculate the finance charges
on the second month.
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.
Although the focus of the hearings was HOEPA, there was also discussion of TILA's finance charge
and the APR.
For example, a card issuer that advertises its annual percentage rate must also disclose any minimum finance charge
, transaction fee, or other charge.