- This topic has 1 reply, 2 voices, and was last updated 11 years, 4 months ago by .
-
Topic
-
1026.22(a)(2) states as a general rule the disclosed APR is accurate if it is within 1/8% above or below the correct APR. 1026.22(a)(5) goes on to say in addition to that tolerance, if the finance charge is calculated incorrectly but is accurate under .18(d)(1) or .23(g)or(h), the disclosed APR is accurate if either (i) or (ii) is true.
1. Is it saying that if the finance charge was calculated correct under .18(d)1) or .23(g) or (h) and either 1026.22(a)(5) (i) or (ii) are true, then the APR does not have to be within 1/8% above or below the correct APR?
2. Or is that in addition to, i.e. the 1/8% above or below tolerance always applies?
3. What does 1026.22(a)(5)(ii) mean by ….but it is closer to the actual annual percentage rate than the rate that would be considered accurate under paragraph (a)(4) of this section?
- You must be logged in to reply to this topic.