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Order Summary of Selected Opinion 99-025

Date: 01/01/1999
Organization: Division of Banks
Docket Number: 99-025

This opinion was issued during the first quarter of 1999.

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.