Finance Charge: The finance charge is a disclosure that appears on the Truth in Lending Act Disclosure Statement. It is intended to show the cost of your loan as a dollar amount. It includes (1) interest that will be charged over the life of the loan and (2) some up front fees (prepaid finance charges). Prepaid finance charges include such items as mortgage broker fees; lender fees; points; and some closing agent fees. Any closing fees that are unreasonably high should also be included. You may also be required to pay other fees that will not be included in the finance charge.

 

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Finance Charge: The finance charge is a disclosure that appears on the Truth in Lending Act Disclosure Statement. It is intended to show the cost of your loan as a dollar amount. It includes (1) interest th . . . View Full Definition

Fair Credit And Charge Card Disclosure Act (1989): A part of the Truth in Lending Act that mandates a box on credit card applications that describes key features and costs (i.e., APR, grace period for purchases, minimum finance charge, balan . . . View Full Definition

Minimum Finance Charge: A minimum finance charge is a fee collected by a credit card issuer each billing period. It applies when the actual finance charge you owe isn’t equal to or larger than this minimum. For exa . . . View Full Definition

Amount Financed: A required Truth in Lending Act disclosure for consumer loans. It is calculated by starting with the full amount borrowed (principal) and subtracting out the dollar amount of prepaid finance . . . View Full Definition