Skip to content

Wording for Open End Consumer Loan Agreements

Answered by: 

Question: 
Our open end consumer loan agreements (demand deposit loans) read: a finance charge will be assessed on the daily unpaid loan balance and I believe it should read interest charge will be assessed. Which is correct to be in compliance with regulation?
Answer: 

Loan agreements are governed under contract and State law.

Editor's Note: The fees and interest allowed to be charged is also governed by the laws of your state.

First published on BankersOnline.com 8/27/12

First published on 08/27/2012

Filed under: 
Filed under compliance 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