Early Termination Fee

Posted By: Peepers

Early Termination Fee - 08/29/02 04:49 PM

Our marketing department wants to charge an early termination fee if someone closes their variable rate line of credit within a certain time. They can pay the loan down, but if they pay it off, they would be charged the fee.

There would be an initial disclosure at application describing this fee, and it would be disclosed on the note.

Is this fee allowed? I can't find anything that says we can't charge it.
Posted By: Andy_Z

Re: Early Termination Fee - 08/29/02 04:53 PM

Your state laws will regulate fees and interest rates.