§ 13.24. Computation of rebates on installment loans.
(a) The term of an extended loan shall be increased by the number of monthly extensions granted; the expired time of the loan contract will similarly take into consideration the number of months of extension granted; and the total finance charge will be increased by the extension charges.
(b) As an example, a 36-month note for $1,000 of which 26 months have expired but 4 months of which were extensions, the rebate would be on the basis of 26/40. The original finance charge of $180 would be increased by total extension charges of $18.36 to $198.36 and by using the rule of 78, the percentage of rebate would be 12.80% or $25.39.
Source The provisions of this § 13.24 adopted August 8, 1975, effective August 9, 1975, 5 Pa.B. 2026.
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