5 Miss. Code. R. 3-6-6.6 - Handling Fees/Origination Fees

1. Origination Fees.

a. The Origination Fee shall be calculated based on 1% of the "Amount Financed" to the account holder" or five dollars ($5.00) whichever is greater.

b. For the purposes of the federal APR calculation, an Origination Fee must be included as part of the "Finance Charge" disclosure as required by the federal Truth-in-Lending Act, Regulation Z. (i.e., Total Handling Fees + Origination Fee = Finance Charge shown in federal TILA box)

c. An Origination Fee is optional; however, if charged, it shall be disclosed in the written agreement. It may be collected with the first payment or it may be allocated in the amortization schedule and collected monthly; however, it must not be included in the calculation of the Handling Fee.

2. Handling Fees.

a. The Handling Fee is for services, expenses, and costs of the license. This includes any and all costs associated with checks or ACH authorizations that are returned for nonsufficient funds. The Licensee is not allowed to charge a separate NSF fee.

b. The Handling Fee must be calculated based on a percentage up to but not exceeding "twenty-five percent (25%) of the outstanding principal balance of any credit availability account per month, or portion thereof. All other fees shall be excluded from the calculation of the Handling Fee (e.g., Origination Fee, late fees, collection fees, etc.)

c. In no event shall any Handling Fees be charged or collected in an amount greater than the fees shown in the Federal TILA box and the "written explanation of fees." Unearned Handling Fees shall be refunded or credited if an account holder pre-pays a loan before the final fixed maturity date.

Notes

5 Miss. Code. R. 3-6-6.6

Miss. Code Ann. §§ 75-67-619 and 75-67-621.

Adopted 3/3/2021