Posted By: Gertie
HELOC Over limit fee & minimum draw fee - 11/19/21 10:38 PM
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.
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.