CFPB extends comment period for ‘finance charge’ definition

The CFPB will provide the public with more time to comment on the agency’s plan to change the way "finance charge" is defined for the purposes of calculating the annual percentage rate. The bureau would like to eliminate several exemptions from the finance charge to more accurately reflect a consumer’s cost of credit. Industry participants voiced concern that changing the way APR is calculated could impact which loans ultimately become subject to various legal protections. Read on to learn when comments are due.