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#1255098 - 09/23/09 08:03 AM Rebateable fees
Rocky P Online
Power Poster

Registered: 06/24/03
Posts: 4591
Loc: South Carolina
If a loan is a consumer loan (other than 1st mortgage) I understand that prepaid finance charges are rebateable if the loan is paid off early (simple interest loans).

Can anyone provide a cite so I can ask our core processor for an enhancement?

Thanks
_________________________
I survived an OCC Fair Lending/Comparative File Review of 1,756 loans with no findings that stuck!
CRCM, CIA, CRP, CBA

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#1255228 - 09/23/09 10:12 AM Re: Rebateable fees [Re: Rocky P]
CDTR Offline
Junior Member

Registered: 07/14/05
Posts: 46
Check out 37-3-210 and 37-23-70(K).

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#1255721 - 09/23/09 03:23 PM Re: Rebateable fees [Re: CDTR]
Rocky P Online
Power Poster

Registered: 06/24/03
Posts: 4591
Loc: South Carolina
Thanks so much for the information - I've read those sections so many times -

Question keeps popping up - the law keep indicating that the rebate applies to prepaid finance charges on "precomputed" loan. All of our loans are simple interest. Would the "rebateable portion" of the law apply to prepaid finance charges on simple interest loans?

Thank you again
_________________________
I survived an OCC Fair Lending/Comparative File Review of 1,756 loans with no findings that stuck!
CRCM, CIA, CRP, CBA

Top
#1255777 - 09/23/09 04:04 PM Re: Rebateable fees [Re: Rocky P]
CDTR Offline
Junior Member

Registered: 07/14/05
Posts: 46
If you can get hold of a copy of the SC Code with comments, see the comment to section 37-23-70-(K). Among other things it says, "The Department of Consumer Affairs has interpreted Section 37-3-210 as requiring rebate of precomputed charges like points and fees upon prepayment in full of the consumer loan even when the loan is a simple interest loan."

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#1255861 - 09/23/09 04:45 PM Re: Rebateable fees [Re: CDTR]
Rocky P Online
Power Poster

Registered: 06/24/03
Posts: 4591
Loc: South Carolina
CDTR - Thank you.
_________________________
I survived an OCC Fair Lending/Comparative File Review of 1,756 loans with no findings that stuck!
CRCM, CIA, CRP, CBA

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