I am in need of some help. We are having some problems with the APR that is printing on our HELOC notes and I want to make sure that I am thinking about this correctly before I talk to our service provider.

I believe that currently our notes are understating the APR for the HELOC product. For example:

(Our HELOCs are based on interest calculation of 365/360. Interest rate is NYP plus 50 basis points or 3.75%.)

Note shows the following:
Daily periodic rate of .0103
APR of 3.0926%

Based on my calculations the note should be showing the following:
Daily periodic rate = 3.75 / 360 = .0104
APR = 0.0104 * 365 = 3.80%

Am I thinking about this correctly or am I on the wrong path?

Thanks in advance for any help.

Looks like your system is assessing interest on a 300/365 basis. How that is possible is beyond me but you are correct, you have a real issue.

The application of an interest rate in this manner (365/360)on a consumer loan would be illegal in many States, even if disclosed correctly.