§ 22200 Loan Service Charges

• •When you borrow money, the lender can charge you extra fees on top of the interest.
• •These extra fees can include things like service charges, broker fees, or costs for handling the loan.
• •The law says all these extra costs count as 'charges' and must be included when talking about the total cost of the loan.
• •This rule applies to any kind of loan, whether it's for money, credit, or even goods.

You take out a loan to buy a car.

The bank tells you the interest rate is 5%, but they also add fees for processing your loan, a brokerage fee, and a service charge. All these extra costs are part of the 'charges' you have to pay, not just the 5% interest. The law makes sure the bank can't hide these fees—they have to tell you about all of them upfront.