Skip to content

Reg Z Rule on Refunding Part of Finance Charge

Answered by: 

Question: 
On the new Truth in Lending section under prepayment penalties, are we required under Reg Z to refund a part of the finance charge (like origination) if a loan is paid off early? Is it a state/regulator specific requirement? Or can each individual bank decide if they want to refund or not?
Answer: 

It is a matter of State law and your loan agreement.

First published on BankersOnline.com 3/19/12

First published on 03/19/2012

Filed under: 
Filed under compliance as: 
Filed under lending as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics