Q: Are fees that a creditor is required to pay by law and passes through to a covered borrower required to be included in the calculation of the MAPR?
A: 32 CFR 232.4(c)(1) details the charges that must be included in the calculation of the MAPR. Among the charges that must be included are finance charges associated with the consumer credit. Finance charges are defined by § 232.3(n) to mean a ‘‘finance charge’’ in Regulation Z. If such fees are considered ‘‘finance charges’’ under Regulation Z, then such fees must be included in the calculation of the MAPR, unless they are bona fide fees charged to a credit card account that are excludable under § 232.4(d). However, if the fees are not ‘‘finance charges’’ under Regulation Z, then they may be excluded from the calculation of the MAPR, provided they do not qualify for any of the other categories of charges listed under § 232.4(c)(1).