10 Pa. Code § 13.24 - Computation of rebates on installment loans
(a) The term of an extended loan shall be
increased by the number of monthly extensions granted; the expired time of the
loan contract will similarly take into consideration the number of months of
extension granted; and the total finance charge will be increased by the
extension charges.
(b) As an
example, a 36-month note for $1,000 of which 26 months have expired but 4
months of which were extensions, the rebate would be on the basis of 26/40. The
original finance charge of $180 would be increased by total extension charges
of $18.36 to $198.36 and by using the rule of 78, the percentage of rebate
would be 12.80% or $25.39.
Notes
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