Regulatory Alerts1997-10-01
155-2-2-.09 Finance Charge - Alabama Consumer Credit Act
The Alabama regulatory body issued this rule to define finance charge calculations for credit transactions under $2,000 using specific annual percentage rates. It permits prepaid finance charges including points and interest surcharges, or alternatively allows creditors to adopt rates used by other federal lending institutions in Alabama. The regulation also mandates that debt cancellation coverage charges be determined in accordance with the Federal Truth in Lending Act and Federal Reserve Board regulations.
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