Bill Summary for S 572 (2017-2018)

Summary date: 

Mar 31 2017

Bill Information:

View NCGA Bill Details2017-2018 Session
Senate Bill 572 (Public) Filed Thursday, March 30, 2017
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.
Intro. by Gunn.

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Bill summary

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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