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.