Open-End Loans. For example, payment for workmen's compensation insurance under either a compulsory or elective State statute are not considered payments for fringe benefits under the Act. Revolving Open-end Credit. With an open-end loan, you're approved for a specific amount. Thus, Choice A is the best one offered. Equity REIT investments typically generate good dividend income, because the REIT distributes most of the net rental income to shareholders. Credit cards are classified as revolving credit because you have a set credit limit, you can use as much or as little of the credit limit as you want, any balance on the account “revolves” to the next month and the account remains open when the balance is zero. Does it appear the following are accurately disclosed: a. The change in the nature of these 215.4 of this part, an extension of credit by a member bank is considered to have been made at the time the bank enters into a binding commitment to make the extension of credit. Regardless of the purpose for which a credit card is to be used, including business, commercial, or agricultural use, no credit card shall be issued to any person except: (1) In response to an oral or written request or application for the card; or (2) As a renewal of, or substitute for, an accepted credit card. c. Reverse mortgage transactions. The finance charge (interest) is the price you pay for being granted credit. Sometimes the value on the Certificate of Reasonable Value is less than the purchase price. Construction - The best interest of the consumer shall be considered in the interpretation and implementation of the provisions of this Act, including its implementing rules and regulations. If the consumer fails to settle the outstanding amount on the credit card, he/she would be charged interest until the amount is paid off. For each consumer credit transaction other than under an open end credit plan, the creditor shall disclose each of the following items, to the extent applicable: (1) … What Is the Purpose of the Fair Credit Billing Act? questions concerning plans for children should be asked before sanctioning credit. For all open-end credit, a consumer's payment must be credited on the date of receipt as long as it is received before 5 p.m. §1638. Generally, the MAPR for open-end credit should be calculated following the rules for calculating the effective APR for a billing cycle as set for in 12 CFR 1026.14 (c) and (d) of Regulation Z. Which of the following actions is not allowed? Dumping old files in the trash bin behind the building . In this kind of credit the lender extends credit for use by the consumer, with an outside limit that depends on the debtor’s credit history and ability to handle the debt repayment. if the credit is refused, the creditor, on demand, must disclose the reasons for rejection. It has to be a true mortgage broker company B. In actuality, a credit card is simply a loan from a lending institution (the issuing company) that pays the merchant when it receives a loan document (a credit card receipt) from the merchant. The final rule now expressly excludes loans or lines of credit to be used primarily for agricultural purposes. open-end loan. – No high‑cost home loan may contain a provision which … The account is not considered past due as long as you make payments according to the terms to which you agreed. FALSE. B. This type of consumer credit is found with most credit cards. Credit cards and lines-of-credit are examples of open-end accounts. Using a credit card issued by a store, a bank card such as VISA or MasterCard, or overdraft protection are examples of open-end credit. A credit card is an example of an open-end consumer loan. The best answer is A. Lenders incorporate the expected rate of inflation when deciding how much interest to charge. The following words and terms, when used in this chapter have the following meanings, unless the context clearly indicates otherwise: Association—A savings association subject to the Code. The FCBA, however, does not apply to installment loans like mortgages, auto loans, or personal loans which you repay on a fixed schedule. consolidation loan, you exchange several smaller debts with varying due dates and interest rates for a single large loan with one interest rate and one monthly payment. (d) For purposes of Sec. In 1980, open-end credit generally consisted of credit card accounts with small credit lines that limited the exposure an institution had to an individual borrower. 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