Finance Charge

(redirected from Finance Charges)
Also found in: Financial.

Finance Charge

The amount owed to a lender by a purchaser-debtor to be allowed to pay for goods purchased over a series of installments, as opposed to one lump sum at the time of the sale or billing.

A finance charge, sometimes called the cost of credit, is expressed as an annual interest rate levied upon the purchase price. It does not include any amounts that the lender might require for insurance premiums, delinquency charges, attorney's fees, court costs, collection expenses, or official fees that might be incurred should the debtor default in the repayment of the debt.

Federal and state "truth-in-lending" laws mandate that the complete cost of finance charges be fully disclosed on credit agreements and billing statements.

Cross-references

Consumer Credit Protection Act.

West's Encyclopedia of American Law, edition 2. Copyright 2008 The Gale Group, Inc. All rights reserved.
References in periodicals archive ?
Summary: Finance charges, interest on two cards waived within months after mediation
Capital Drilling also recorded a rise in interest income to USD168,966 from USD59,866 and a drop in finance charges to USD391,899 from USD533,081.
TRAVELLERS International Hotel Group Inc., the operator of Resorts World Manila, said on Tuesday its net income was cut in half to P842.6 million from last year's P1.68 billion, mainly as a result of higher finance charges for its expansion and other depreciation expense.
For the second quarter alone, the net income of Travellers-owner and operator of Resorts World Manila-declined by 52 percent year-on-year to some P600 million due to higher finance charges and increase in depreciation expense.
Finance charges of the Company increased by 2.6x, majorly due to substantial rise in short term financing requirements of the Company and full year charge of liabilities subject to new plant during the current year as against half year charge in the comparative period.
Pakistan authorities on Wednesday arrested Hafiz Saeed, the alleged mastermind of a four-day militant attack on the Indian city of Mumbai in 2008, on terror finance charges, a spokesman for the chief minister of Punjab said.
Moola also failed to disclose the finance charges in terms of pesos and centavos and the percentage that the finance charge bears to the total amount to be financed.
The deterioration in results was due to higher cost of sales and finance charges.
Also, as from the end of Q2 2020, the original net debt/EBITDA ratio and adjusted EBITDA/net finance charges ratio are applied.
State caps on bank finance charges are 10 percent or 5 percent over the federal discount rate for traditional loans, 10 percent or 5 percent over the 20-year U.S.
Cheapskates and low spenders aren't the ideal credit card customers for banks because they're typically not as profitable as fast-swiping spendthrifts who rack up finance charges. Still, banks offer credit cards with features that can fit well into a frugal lifestyle.
Mr Trump's tweet came after Cohen pleaded guilty to campaign finance charges, in a case that poses a direct threat to the President.

Full browser ?