Finance Charge — definition (Banking)

Banking

The total cost of credit a customer must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge.

The Office of the Comptroller of the Currency — Dictionary of Banking Terms and Phrases
Office of the Comptroller of the Currency, U.S. Department of the Treasury — Dictionary of Banking Terms and Phrases retrieved 2014-05-16

Business› Finance

Personal Finance

The total cost of credit a member must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge.

National Credit Union Administration — Pocket Cents Glossary retrieved 2014-05-16

The finance charge, or total dollar amount you pay to borrow, includes the interest you pay plus any fees for arranging the loan.

A finance charge is expressed as an annual percentage rate (APR) of the amount you owe, which allows you to compare the costs of different loans.

The Truth-in-Lending Law requires your lender to disclose the APR you'll be paying and the way it is calculated before you agree to the terms of the loan.

Yahoo Finance — Yahoo Personal Finance Glossary

Business› Finance› Personal Finance

Consumer Credit

The cost of interest and other charges involved in borrowing money.

State of Maine, Department of Professional and Financial Regulation — Consumer Credit Protection Glossary retrieved 2014-05-16