So the question to ask is, "Was a change in terms notice provided 45 days prior to implanting an annual fee provided to consumers in accordance with 1026.9(c)? If it was, there are no concerns with the annual fee.
If a change in terms wasn't provided and you are charging an undisclosed fee, then step 1 is to stop charging the fee. Step 2 is to determine how many affected customers you have and how much as been charged inappropriately. (If any of these fees were also capitalized the interest calculations will not be fun). (Don't forget lines of credit that were charged and are now closed) Step 3 is to develop a restitution plan which you can then propose to your primary examiner to ensure they are comfortable with the length of your lookback and your process before cutting any checks.
Depending on the amount of the annual fee, there are also possible MAPR concerns under the Military Lending Act as annual fees must be included in the MAPR calculation.
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