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Reg Z Rule on Refunding Part of Finance Charge

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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?

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

First published on 3/19/12

First published on 03/19/2012

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Filed under compliance as: 
Filed under lending as: 

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