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#30310 - 08/29/02 07:18 PM WI - Early Termination Fee
Peepers Offline
10K Club
Joined: Jul 2002
Posts: 13,994
Can anyone from a Wisconsin institution shed some light on this?

We want to charge an early termination fee on a line of credit. The customer can pay down the line at anytime, but if they pay it off within 2 years, they would be subject to a $250 fee. We would disclose this at application and on the note.

I can't find this specifically in WI statutes. I'm wondering if we are limited to charging a certain dollar amount as well. I did find a reference to a merchant being able to retain a loan administration fee if it met certain conditions (422.209).
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#30311 - 08/29/02 10:08 PM Re: WI - Early Termination Fee
Anonymous
Unregistered

tmf,

If you have a variable rate HELOC, look at 138.056(3) Fees and Penalties prohibited. This restricts charging prepayment fees.

Opinions stated are my own and do not reflect those of my employer.


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