Charging an Advance Fee on Consumer LOC

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Question:

Can I charge an advance fee on a consumer line of credit? On a commercial LOC, I know it is ok, but not totally sure on a consumer. If I do, is it ok to waive the fee periodically for certain customers?

Answer:

Fees of this nature would be governed under state law. Whether or not you should waive the fees will be based on the reason. As long as the pattern of fee waivers do not represent disparate treatment or impact from a fair lending perspective, there is no prohibition on waiving fees.

First published on BankersOnline.com 10/25/10