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 August 20, 2026
Evidence through 2024-08-07 · 1 source has no source-event date
Content modified 2026-08-20
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.
Applicable jurisdiction: US federal disclosure context; applicability and classification are transaction-specific
Definition claim verification: Verified August 20, 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.
Applicable jurisdiction: US federal disclosure context; applicability and classification are transaction-specific
Decision-context claim verification: Verified August 20, 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
Broader topic
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Primary sources
- Consumer Financial Protection Bureau: Issue Spotlight: Solar Financing
Revision Published 2024-08-07 · Source event as of August 7, 2024 · Ontology accessed August 20, 2026 · Ontology verified August 20, 2026
- Consumer Financial Protection Bureau: 12 CFR 1026.4 — Finance charge
Revision 12 CFR 1026.4; current electronic regulation and official interpretation · Source event date not provided · Ontology accessed August 20, 2026 · Ontology verified August 20, 2026