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Passing Surcharge to Borrower - Part of the APR?

Answered by: 
Lucy Griffin
Richard Insley

Question: 
We are considering filing our UCC statements online, and the state charges a $2.00 surcharge for the service, which we would pass on to the borrower. I'm wondering if on a consumer transaction the $2.00 charge would need to be part of the APR?
Answer: 

Answer by Richard Insley:The added fee is for the convenience, not the filing. I vote for calling it a FC and bumping up the APR.

Answer: 

Answer by Lucy Griffin:I agree with Richard. This isn't a required fee but one the creditor is choosing to incur -- for the creditor's convenience.

First published on BankersOnline.com 8/28/06

First published on 08/28/2006

Filed under: 
Lending
Filed under lending as: 
Statements
UCC

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