16a-2-402

Chapter 16a.--CONSUMER CREDIT CODE

Part 4 CONSUMER LOANS; MAXIMUM FINANCE CHARGES
Article 2.--FINANCE CHARGES AND RELATED PROVISIONS

     
16a-2-402.   (UCCC) Consumer loans pursuant to open
end credit; allowable charges per billing cycle.
(1) This section applies only
to consumer loans pursuant to open end credit.

     
(2)   A charge may be made in each billing cycle which is a percentage of
an amount no greater than:

     
(a)   The average daily balance of the account, which is the sum of the
actual amounts outstanding each day during the billing cycle divided by the
number of days in the cycle;

     
(b)   the unpaid balance of the account on the last day of the billing
cycle.

     
(3)   If the billing cycle is monthly, the charge may not exceed 1/12 of
the annual rate agreed to by the consumer.
If the billing cycle is not monthly, the maximum charge is that percentage
which bears the same relation to the applicable monthly percentage as the
number of days in the billing cycle bears to 30. For
the purposes
of this section, a variation of not more than four days from month
to
month is "the last day of the billing cycle."

     

     
History:   L. 1973, ch. 85, § 28;
L. 1999, ch. 107, § 16; July 1.