Deferral Charges – When a creditor agrees to allow a borrower to skip a payment the creditor may or may not be able to assess a deferral charge depending on the type of transaction involved.
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Simple Interest Transactions (Closed-End Credit) – In simple interest transactions no additional charge is permitted for a deferral. The creditor will, however, receive an additional amount of interest than what was expected because by skipping a payment interest will accrue on a principal amount that is larger than scheduled. This additional interest that automatically accrues with simple interest transactions equals the deferral charge allowed with precomputed transactions.
Simple Interest Transactions (Open-End Credit) – Deferral charges are allowed.
Motor Vehicle Leases – Deferral charges are allowed.