Posted By: Peepers
WI - Early Termination Fee - 08/29/02 07:18 PM
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).
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).