Doc Prep Fee - non-RE secured loan

I have always considered a Doc Prep fee for a non real estate secured loan as a finance charge (i.e. for a car loan), but I cannot find a specific citation for this (showing that is should be considered). I know it is not in a RE secured transaction.

Does anyone know where I can find "evidence" that it should be considered a finance charge for a non real estate secured transaction?

Never mind....been there done that already...brain overload

http://www.bankersonline.com/forum/ubbthreads.php?ubb=showflat&Number=1663300

On a related note...let's say the bank does a $3000 non real estate secured loan and did NOT include a $100 doc prep fee as a finance charge and when entered in APRWIN it shows that the APR would have exceeded the max allowed by law (which is 18% in FL). And...this has been done on many loans.

What kind of remedy would you recommend?

Become familiar with section 130 of the Act - Civil liability http://www.fdic.gov/regulations/laws/rules/6500-300.html#fdic6500130

And read Florida Usury law. If I remember correctly, if a loan is usurious then the lender forfeits all interest.

Check with your bank counsel for their input, since there seems to be more than 1 loan affected, and potential comment for pattern or practice. Personally, I would reimburse to avoid civil liability.

Definitely get your attorney involved. Not only do you have the Usury to deal with you have Reg. Z to also deal with. Since these are not RE secured loans your finance charge tolerance is only $10 therefore you most likely have both TIL finance charge and APR violations.

You best be prepared to get the checkbook out.

From 1026.18

(2) Other credit. In any other transaction, the amount disclosed as the finance charge shall be treated as accurate if, in a transaction involving an amount financed of $1,000 or less, it is not more than $5 above or below the amount required to be disclosed; or, in a transaction involving an amount financed of more than $1,000, it is not more than $10 above or below the amount required to be disclosed.

I appreciate your feedback. Thanks!