Interpretation of Truth in Lending Regulation Z to clarify treatment of prepaid finance charges in credit transactions

Agency: Federal Reserve
Date: Aug. 24, 1973
Type: interpretation
Source: fraser.stlouisfed.org/title/press-releases-board-governors-federal-res
Pages: 1
PDF: Original document (PDF)

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E D E R A L R E E R V E ECU IN RECORDS SECTION) AUG 2 7 1973 For immediate release August 24, 1973 The Board of Governors of the Federal Reserve System today issued the attached interpretation of its Truth in Lending Regulation Z clarifying the treatment of "prepaid finance charges" in credit transactions.

The interpretation states that the typical "add-on" or "discount" charge or other precomputed finance charge on an installment contract need not be labeled a "prepaid" finance charge. - 0 -