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#1168448 - 04/22/09 09:20 PM Finance Charge Error
Hi Offline
Joined: Jun 2003
Posts: 54
We finance for a local heat & air dealer. The dealer prepared a loan contract on which they made a typographical error in the finance charge. The finance charge was disclosed at $667 and should have been $867.00. The loan officer wants to just redisclose the correct finance charge amount. My opinion we are held to the original contract that has been signed, but should redisclose the adjusted APR and payment reduction, if any based on the finance charged originally discussed.

What is the correct way to handle this situation?

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Lending Compliance
#1168517 - 04/22/09 11:09 PM Re: Finance Charge Error Hi
Richard Insley Offline
10K Club
Richard Insley
Joined: Oct 2000
Posts: 10,007
Toano, VA
I'm with you--if the TIL said $667, then it needs to be $667. To be a full cure, "the creditor or assignee notifies the person concerned of the error and makes whatever adjustments in the appropriate account are are necessary to assure that the person will not be required to pay an amount in excess of the charge actually disclosed...." Technically, the error was limited to the FC, so you wouldn't need to include more than that in the customer notification.
...gone fishing.

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