This question is in regards to non-real estate secured loans.

Would a documentation fee for a consumer non-real estate secured loan be considered a finance charge? We do not charge a loan origination fee just a documentation fee.

Thanks.

Exactly what documents and/or services are rendered in order for you to justify the fee?

Would a documentation fee for a consumer non-real estate secured loan be considered a finance charge?

Yes. You will not find an exemption for this fee in 1026.4.

I'll go with Richard's question. Dealers typically charge the same documentation fee on all vehicles purchased regarding if purchased with cash or financed. In that case, the doc fee is not a finance charge.

And don't you just love how those dealer doc fees never appear in their initial "pro forma" paperwork they use to convince you to buy the car? Finance charges or not, there ought to be more transparency when dealing with those dealer folks.

Based on the question referring to not charging origination fees I would have never related the question to a 3rd party fee such as a dealer fee.

I thought about the possibility of doc stamps. Some states used to impose this type of tax on certain loan-related documents (but I can't remember if it extended beyond security instruments.) Loosely described, this type of charge could be called a documentation fee or charge.

And...loose descriptions are always a problem. Jargon exists within the industry, regionally, at the state level, bank-by-bank, and even among the different lending units within a single bank. My first step has always been to strip away all the jargon and describe the nature of a charge. Only when a fee is described in generic terms can you apply the "comparable cash transaction" principle and the more specific definitions and exclusions found in Section 1026.4.

This is not a third party fee, this doc fee is charged by the bank.

I really appreciate everyone's input, thank you!