Limitation on default charges in consumer related sales

Sec. 32. (a) An agreement with respect to a consumer related sale may provide for only the following charges as a result of the buyer's default: (1) Reasonable attorney's fees and reasonable expenses incurred in realizing on a security interest. (2) Deferral charges not in excess of twenty-five percent (25%) per year of the amount deferred for the period of deferral. (3) Other charges that could have been made had the sale been a consumer credit sale. (b) A provision in violation of this section is unenforceable. [Pre-2026 Revision Citation: 24-4.5-2-604.] As added by P.L.115-2026, SEC.97.