AN ACT TO MODERNIZE NORTH CAROLINA'S REVOLVING CREDIT CHARGES AND CONSUMER CREDIT INSTALLMENT SALE CONTRACT DEFAULT CHARGE IN ORDER TO LEVEL THE PLAYING FIELD WITH OUT-OF-STATE BUSINESSES.
Amends GS 24-11 to increase the allowable interest charges from one and one-half percent to one and five-sixths percent per month on the extension of credit under an open‑end credit or similar plan where a service charge cannot be imposed if the account is paid in full within 25 days from the billing date, but upon which an annual charge of up to $24 is allowed. Also increases the allowable monthly rate for interest and service charges from one and one-half percent to one and five-sixths percent per month on revolving credit loans if it is agreed to in writing by the borrower. Increases the amount of the late fee that a lender may charge on accounts having an outstanding balance of $100 or more, from $10 to $25.
Amends GS 25A-29 to provide that if any installment is past due for 10 days or more according to the original terms of the consumer credit installment sale contract, a default charge can be made in an amount not to exceed $25 (was, not to exceed the lesser of 5% of the installment past due or $6).
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