Thread Options
#1157028 - 04/03/09 01:04 AM Overstated APR and/or FC
goingtoexperts Offline
100 Club
Joined: Jul 2006
Posts: 149
Would a student loan with 2 disbursements be considered an irregular loan subject to the 1/4 of 1% APR tolerance? If an APR and/or finance charge is over disclosed, are we obligated to re-disclose to the consumer? Thank you!

Return to Top
Lending Compliance
#1157870 - 04/03/09 10:51 PM Re: Overstated APR and/or FC goingtoexperts
goingtoexperts Offline
100 Club
Joined: Jul 2006
Posts: 149
For more information, these would be private student loans subject to closed-end disclosures requirements under Reg Z.

Return to Top
#1157916 - 04/04/09 12:05 PM Re: Overstated APR and/or FC goingtoexperts
Richard Insley Offline
10K Club
Richard Insley
Joined: Oct 2000
Posts: 10,035
Toano, VA
Yes, all multiple advance loans are irregular--see Footnote 46. Neither Reg. Z nor the TILA require you to redisclose. Internal policy, investor requirements, regulator expectations, and other factors must also be considered, however. Redisclosure is the only way to eliminate TILA's civil liability, so if you are concerned about being sued for non-compliance, you will want to follow the "cure" prescription in Section 130(b) of the TILA. Of course, your main concern should be to determine what caused the error and fix the source of the problem.
_________________________
...gone fishing.

Return to Top

Moderator:  Andy_Z