Title 54 — DEBTOR AND CREDITOR

Terms used in this chapter mean: (1) "Cash sale price," the price for which the person making a sale pursuant to an installment sales contract would have sold the goods or services if the sale had been for cash. The cash sale price may include any taxes or license, title, and reg…

If the maturity of an obligation under an installment sales contract is accelerated for any reason and judgment is obtained, the consumer is entitled to a rebate computed as if payment in full had been made on the date that the action was brought. Source: SL 1974, ch 305 , § 4.

If the buyer has not paid an installment on an installment sales contract on or before the tenth day after its due date, as originally scheduled or as deferred, the creditor, if he chooses to impose a penalty for the delinquency, shall before the due date of the next scheduled in…

The holder of a contract authorized by this chapter may, if the contract so provides, collect a delinquency and collection charge on each installment in arrears for a period of not less than ten days in an amount not in excess of five percent of each installment or five dollars, …

The holder of a contract authorized by this chapter may, if the contract so provides, collect a charge not to exceed thirty dollars for each check, draft, order of withdrawal, or similar payment device that is received by the holder in connection with the contract and that is ret…

No term of a writing executed by the buyer prior to agreement to a deferral constitutes authority for a creditor unilaterally to grant a deferral and make charges therefor. Source: SL 1974, ch 305 , § 12; SL 1990, ch 30 , § 14.

A deferral agreement shall: (1) Be in writing and be signed by the parties; (2) Incorporate by reference the transaction to which the deferral agreement applies; (3) State the number of installments or partial installments to be deferred, the amounts thereof, the date or dates or…

A charge may not be collected for the deferral of an installment payment or any part thereof if the unpaid balance is refinanced. Source: SL 1974, ch 305 , § 12.

A creditor may, by written agreement with the buyer, refinance the unpaid balance and may contract for and receive a finance charge based on the amount refinanced. Any rebate due to the buyer pursuant to the provisions of § 54-3A-9 if the buyer was prepaying in full on the date o…

A refinancing agreement shall: (1) Be in writing and be signed by the parties; (2) Incorporate by reference the transaction to which the refinancing agreement applies; (3) State the amount that is to be refinanced, the date or dates on which the installments were originally payab…

If a delinquent installment is not deferred or the unpaid balance is not refinanced under the provisions of this chapter within thirty days after the due date of the delinquent installment, then the creditor may pursue any remedies available to him. Source: SL 1974, ch 305 , § 15…

As used in this chapter, unless the context otherwise requires, "amount financed" means the total of the following items from which any prepaid finance charge or required deposit has been excluded: (1) The cash price of the goods or services less the total amount of any down paym…

If any amount in excess of the charges permitted by this chapter is contracted for or received, or if any other provision of this chapter is violated, other than as a result of an unintentional or bona fide error of computation, the consumer shall not be liable for any part of th…

With respect to excess charges arising from an installment sales contract, no action pursuant to § 54-3A-20 may be brought more than three years after the due date of the last scheduled payment of the contract on which the charge was made. Source: SL 1974, ch 305 , § 17.

No action shall be commenced to recover any amount under § 54-3A-20 unless and until written demand therefor has been made, signed by the buyer, and the creditor has failed to refund or credit such amount to the buyer within sixty days after receipt of the demand. Source: SL 1974…

The creditor shall have the burden of establishing by a preponderance of the evidence that the excess amount or other violation occurred as a result of an unintentional or bona fide error of computation. Source: SL 1974, ch 305 , § 16.

The Department of Labor and Regulation may promulgate rules and regulations to carry out the provisions of this chapter. Such rules and regulations shall be promulgated in accordance with chapter 1-26 . Source: SL 1974, ch 305 , § 18; SL 2004, ch 17 , § 304; SL 2011, ch 1 (Ex. Or…

If any part of this chapter is invalid, all valid parts that are severable from the invalid part shall remain in effect. If any part of this chapter is invalid in one or more of its applications, the parts that are severable from the invalid applications shall remain in effect in…

Notwithstanding the provisions of any other law, a creditor may contract for and receive, pursuant to an installment sales contract, a finance charge at a rate as agreed upon by the creditor and the consumer by written agreement. The finance charge is expressed and compounded in …

In addition to the finance charge, a creditor may contract for, and receive the following additional charges in connection with an installment sales contract if such charges are itemized and disclosed to the buyer: (1) Official fees and taxes; (2) Charges for guaranteed asset pro…

The term of a consumer obligation under this chapter, commences with the date the credit is granted unless goods are delivered or services are performed ten days or more after the date credit is granted, in which case the term commences with the date of delivery or performance. N…

Except as provided in this section, no creditor shall modify the terms of any agreement with a consumer with respect to any outstanding obligation of the consumer, which results in an increase of the rate of the finance or other charges or an increase in the amount of an installm…

As used in this chapter, unless the context otherwise requires, "Rule of 78" means a refund of charges which shall be at least as great a proportion of the total charges, as the sum of the remaining monthly balances of principal and interest combined scheduled to follow the date …

The Rule of 78 as defined in § 54-3A-8 may not be used in any consumer installment sales contract. The Rule of 78 may, however, be used to compute the unearned premium on insurance. Source: SL 1984, ch 320 , § 1.

Upon prepayment in full of the unpaid balance of an installment sales contract, or upon a refinancing or a consolidation thereof, an amount equal to the total finance charge contracted for, less the finance charge earned, shall be rebated to the buyer. If the total of all rebates…