| Date: | 01/01/1999 |
|---|---|
| Organization: | Division of Banks |
| Docket Number: | 99-025 |
This opinion was issued during the first quarter of 1999.
- This page, Summary of Selected Opinion 99-025, is offered by
- Division of Banks
Order
Order Summary of Selected Opinion 99-025
Table of Contents
Permissibility To Assess Administration Fee On Consecutive Small Loans
The Small Loan Rate Order set forth at 209 CMR 26.06 provides that "[a]n administrative fee is not permitted to be assessed to a borrower more than once during any 12 month period." The prohibition is clearly applicable to the borrower and not to individual loans. Thus a borrower who takes a small loan, is charged an administration fee, subsequently pays off the loan and takes another short term loan within a 12 month period, may not be assessed an additional administration fee.