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#2262750 - 11/19/21 10:38 PM HELOC Over limit fee & minimum draw fee
Gertie Offline
Member
Joined: Jan 2016
Posts: 62
I'm a little confused.

Comment for 1026.6(a)(2) gives over the credit limit charges as an example of charges that are required to be disclosed on the Application Disclosure.

Comment 1026.40(d)(7)-3 states Fees not required to be disclosed. Fees that are not imposed to open, use, or maintain a plan, such as fees for researching an account, photocopying, paying late, stopping payment, having a check returned, exceeding the credit limit, or closing out an account do not have to be disclosed under this section.

Which is correct? If not on the Application Disclosure where is it permissible to disclose, the Note? I didn't see a minimum draw fee example, but assume it could be treated the same way as the over the credit limit fee. Any help would be greatly appreciated.

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Lending Compliance
#2262764 - 11/20/21 08:44 AM Re: HELOC Over limit fee & minimum draw fee Gertie
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 79,293
Galveston, TX
1026.6 is the account opening disclosure.

1026.40 is the early HELOC disclosure given at application,
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#2262766 - 11/20/21 01:46 PM Re: HELOC Over limit fee & minimum draw fee Gertie
Gertie Offline
Member
Joined: Jan 2016
Posts: 62
Thanks, Randy. We weren't linking the Account Opening Disclosure to the credit agreement.

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