221k views
4 votes
All but one of the following is included in the "finance charge" under the Truth-in- Lending provisions:

(A) Points
(B) Loan finder's fee
(C) Attorney's fee
(D) Service charges

User Dannie
by
7.8k points

1 Answer

2 votes

Final answer:

A finance charge under the Truth-in-Lending provisions usually includes points, loan finder's fees, and service charges, but typically does not include attorney's fees unless they are required for credit approval.

Step-by-step explanation:

A finance charge under the Truth-in-Lending provisions usually includes points, loan finder's fees, and service charges, but typically does not include attorney's fees unless they are required for credit approval.

Under the Truth-in-Lending provisions, a finance charge is meant to reflect the cost of credit, which generally includes the interest and other charges associated with the granting of a loan. The finance charge typically comprises:

  • Points paid at closing
  • Loan finder's fee, which is a charge by a third party for assisting in locating a lender
  • Service charges by the lender

However, an attorney's fee (C) is generally not included in the finance charge, especially when the attorney's service is not a requirement for credit approval but rather a service for document preparation or another legal service related to the closing of the loan.

User Gawin
by
8.2k points