Defined term

Finance charge

A finance charge is the cost of consumer credit expressed as a dollar amount under the applicable disclosure rule, including charges included by that rule and excluding charges it excludes.

Also known as cost of consumer credit

economics · Concept code GS-CONCEPT-080 · Last verified September 29, 2026

Evidence through 2024-08-07 · 1 source has no source-event date

Content modified 2026-09-29

Definition and boundaries

Definition

A finance charge is the cost of consumer credit expressed as a dollar amount under the applicable disclosure rule, including charges included by that rule and excluding charges it excludes.

Review confirmed · Review due October 29, 2026

The previous review deadline was September 19, 2026. The missed interval remains unverified; the current review does not establish historical coverage.

The cited evidence supports this statement within the source’s stated scope. Its jurisdiction and source-event date limit its applicability to a particular project.

Applicable jurisdiction: US federal disclosure context; applicability and classification are transaction-specific

Definition claim verification: Verified September 29, 2026

In plain language

Use Finance charge only after the cash-flow perspective, timing, contract structure, included costs, and omitted items are made explicit.

What it is not

It is not every fee in a solar transaction and it cannot be identified solely from an industry's fee label.

Decision context

Why it matters

Classification depends on the transaction and rule; inspect itemized charges, prepaid amounts, seller or lender relationships, APR, amount financed, and official interpretations.

Review confirmed · Review due October 29, 2026

The previous review deadline was September 19, 2026. The missed interval remains unverified; the current review does not establish historical coverage.

The cited evidence supports this statement within the source’s stated scope. Its jurisdiction and source-event date limit its applicability to a particular project.

Applicable jurisdiction: US federal disclosure context; applicability and classification are transaction-specific

Decision-context claim verification: Verified September 29, 2026

Information boundary

This page provides general educational context, not a site design, production guarantee, utility determination, contract interpretation, legal opinion, tax conclusion, or individualized financial advice. Verify property, equipment, utility, jurisdiction, program, and agreement details before acting.

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Learning navigation

Primary topic: Finance

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