I know this may be basic. Per Indiana Code, what is the difference between an annual fee and a finance charge? I've been hovering around 24-4.5-3-209 but feel like I am going in circles. A Personal Line of Credit has a revolving feature and is assessed an annual fee (It is promoted as overdraft protection and linked for that purpose). Does that matter if it is a revolving line, fixed rate with annual fee that cannot be linked to OD? I guess my reasoning is that they are just renewing a loan every year at that point so wouldn't it be a finance charge? Isn't there an issue with this kind of fee being "unearned" or not a bona fide fee?

IC 24-4.5-3-209 is the section for the Right to Prepay. Can you please clarify what you are asking?

If you can charge an annual fee for a revolving account (not credit card) and it is assessed every year for the next year forward, are there any concerns on refunding that if they prepay and close out the account before the year is up or don't use the line at all? IC says that the annual fees also may not be assessed to circumvent other requirements (paraphrased)- is there a particular requirement that is referring to? If they are reassessing the account every year and renewing or closing at that point, I am concerned that it is not a true annual fee.

Look at IC 24-4.5-3-210(2). Revolving loan accounts are not subject to the rebate rules.

Thank you!