Request for Reimbursement of Loan Transfer Fee

An employee of the Department of the Interior (DOI) claimed reimbursement of a voucher representing a loan transfer fee incurred pursuant to a permanent change of station. The claim was denied by DOI on the basis that the loan transfer fee represented a cost incident to the extension of credit with the purview of applicable regulation and thus was not reimbursable. The protester contended that the determination by DOI was improper since the loan transfer fee was not a finance charge. In previous instances a loan transfer fee or loan assumption fee was not reimbursable because it is regarded as a finance charge despite the fact that such a fee merely reflected administrative costs. The voucher may not be certified for payment. However, charges for a credit report are made specifically reimbursable to the extent they do not exceed the customary charges for the area involved. Therefore, if the claimant can submit evidence of the specific amount of the loan transfer fee which was chargable to the credit report, he may be reimbursed that amount.