Helocs - Interest Charge v. Finance Charge

Posted By: ItNeverEnds CRCM

Helocs - Interest Charge v. Finance Charge - 03/04/20 07:39 PM

Ok, need some help and this is probably a really stupid question (and I posed the same question in 2015, but didn't get a reply lol).

For our Heloc billing notices, our core system use the term "Interest Charge" as allowable under 1026.7(a), so are following 1026.7(b)(6). So on the back of our statement we should be using the G–1(A)—Balance Computation Methods Model Clause that explains the balance computation method using the terms "Interest Charge". So my question is shouldn't the Heloc Account Opening Disclosures also use the term "Interest Charge" instead of "Finance Charge"? I couldn't find a reference in the Reg regarding using Interest Charge, only Finance Charge.

Any point in the right direction would be greatly appreciated.

Thanks.
Posted By: rlcarey

Re: Helocs - Interest Charge v. Finance Charge - 03/04/20 08:04 PM

There is nothing in 1026.6(a) that would allow it.
Posted By: ItNeverEnds CRCM

Re: Helocs - Interest Charge v. Finance Charge - 03/04/20 10:25 PM

Thank you. I couldn't find anything, but thought I must be missing something because it seems strange to allow for 2 different terminologies.
Thanks Randy!