N.Y. Comp. Codes R. & Regs. tit. 23 § 600.4

Current through Register Vol. 46, No. 43, October 23, 2024

Section 600.4 - Allowed tolerances

(a) An annual percentage rate disclosed pursuant to section 600.3 of this Part shall be considered accurate if:

(1) it is not more than one-eighth of one percentage point above or below the annual percentage rate determined in accordance with section 600.3(b); or

(2) in an irregular transaction, it is not more than one-fourth of one percentage point above or below the annual percentage rate determined in accordance with section 600.3(b). For purposes of this paragraph, an irregular transaction is one that includes one or more of the following features: multiple advances, irregular payment periods, or irregular payment amounts (other than an irregular first period or an irregular first or final payment); or

(3) the percentage difference between the annual percentage rate determined in accordance with section 600.3(b) of this Part and the annual percentage rate disclosed pursuant to section 600.3(a) of this Part is 2.5 percent or less. The percentage difference shall be calculated as follows: The annual percentage rate disclosed pursuant to section 600.3(a) shall be subtracted from the annual percentage rate determined in accordance with section 600.3(b), and the resulting difference shall be divided by rate disclosed pursuant to section 600.3(a) and multiplied by 100.

(b) A provider and financer shall have no liability under this section for any bona fide error in a disclosure to a recipient that does not comply with this section, if within sixty days after discovering the error through the provider's or financer's own procedures, and prior to the institution of an action against the provider or financer for such error, the financer or its assignee notifies the recipient of the error and makes whatever adjustments in the appropriate account are necessary to assure that the recipient will not be required to pay an amount in excess of the finance charge actually disclosed, or the dollar equivalent of the annual percentage rate actually disclosed, whichever is lower.

(c) A provider or financer shall have no liability for inadvertently disclosing a finance charge, annual percentage rate, periodic payment or irregular payment, average monthly cost, maximum non-interest finance charge, or prepayment fee or charge that exceeds the amount that the provider is required to disclose under this section.

N.Y. Comp. Codes R. & Regs. Tit. 23 § 600.4

Adopted New York State Register February 1, 2023/Volume XLV, Issue 05, eff. 2/1/2023