The federal appeals court in Chicago has held that banks don't have to describe in detail their policies for refunding unearned interest on loans and leases that are terminated early.

The U.S. Court of Appeals for the Seventh Circuit said in a July 11 decision that banks must disclose the name of the method used to calculate the refund. But the court said institutions do not have to describe how the method works, saying that explanations would require so much detail that they would become meaningless.

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