AN ACT TO INCREASE THE MAXIMUM FINANCE CHARGE RATES FOR CONSUMER CREDIT INSTALLMENT SALE CONTRACTS AND TO EXPAND THE DEFINITION OF OFFICIAL FEES AS APPLIED TO THOSE CONTRACTS.
Amends GS 25A-10, which defines official fees for the Retail Installment Sales Act, by providing that it includes fees and charges prescribed by law that actually are or will be paid by the seller (was, paid to public officials) for determining the existence of or for perfecting, releasing, or satisfying a security interest related to a consumer credit sale, or premiums payable for insurance in lieu of perfecting a security interest otherwise required by the seller in connection with a consumer credit sale if the premium does not exceed the fees or charges described above that would otherwise be payable). Makes other clarifying changes.
Amends GS 25A-15 by adding that all balances due under a consumer credit installment sale contract from any person as a buyer or as an endorser, guarantor, or surety for any buyer or otherwise jointly or severally is to be considered a part of the amount financed with regard to the contract for the purposes of computing interest or charges. Provides that the finance charge rates are the rates required to be disclosed under by the Consumer Credit Protection Act, except that official fees must be included in the amount financed and excluded from the finance charge. Changes the caps on the finance charge rate for consumer credit installment sale contracts to 24% per annum where the amount financed is less than $3,500; 22% for amounts between $3,500 and $5,000; 20% for amounts between $5,000 and $7,500; and 18% for an amount of $7,500 or greater. Makes additional technical and clarifying changes.
Applies to contracts entered into, renewed, or modified on or after October 1, 2019.
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