Determination of annual percentage rate.

CFR · 2024-01-01 · US · Title 12

(a) (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 § 226.18(d)(1); or (B) For purposes of rescission, if the disclosed finance charge would be considered accurate under § 226.23(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 rate determined in accordance with appendix J, within the degree of accuracy set forth in paragraph (a) of this section. (c) (d)

official document · source cfr-2024 · id 12:§ 226.22