Determination of annual percentage rate.

CFR · 2024-01-01 · US · Title 12

(a) (i) The error resulted from a corresponding error in a calculation tool used in good faith by the creditor; and (ii) Upon discovery of the error, the creditor promptly discontinues use of that calculation tool for disclosure purposes and notifies the Bureau in writing of the error in the calculation tool. (2) As a general rule, the annual percentage rate shall be considered accurate if it is not more than (3) In an irregular transaction, the annual percentage rate shall be considered accurate if it is not more than (4) (i) The rate results from the disclosed finance charge; and (ii)(A) The disclosed finance charge would be considered accurate under § 1026.18(d)(1) or § 1026.38(o)(2), as applicable; or (B) For purposes of rescission, if the disclosed finance charge would be considered accurate under § 1026.23(g) or (h), whichever applies. (5) (i) If the disclosed finance charge is understated, and the disclosed annual percentage rate is also understated 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; (ii) If the disclosed finance charge is overstated, and the disclosed annual percentage rate is also overstated 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. (b) (2) Creditors may use any other computation tool in determining the annual percentage rate if the rate so determined equals the r

official document · source cfr-2024 · id 12:§ 1026.22