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Discount Fee (Point)-Include in APR?

Question: 
I have always been told that if you have a bonefide discount fee (point) that the discount fee does not need to be included in the APR. It seems as if everyone is including in the APR (the discount fee). Is there a way to not include it in the APR?
Answer: 

by Dan Persfull:

Discount points payable by the borrower are not excluded from the APR calculation.

1026.4

(a) Definition. The finance charge is the cost of consumer credit as a dollar amount. It includes any charge payable directly or indirectly by the consumer and imposed directly or indirectly by the creditor as an incident to or a condition of the extension of credit. It does not include any charge of a type payable in a comparable cash transaction.

Seller points, 1026.4(c)(5), are excluded.

Answer: 

by Richard Insley:

Hmmm....sounds like the kind of problem that would lead to a large reimbursement order.

First published on 11/18/2018

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