16a-3-204.   (UCCC) Change in terms of open end credit accounts.(1) If a creditor makes a change in the terms of an open end creditaccount without complying with this section any additional cost orcharge to the consumer resulting from the change is an excess charge andsubject to the remedies available to consumers (section 16a-5-201) andto the administrator (section 16a-6-113).

      (2)   A creditor may change the terms, including the finance charge, of anopen end credit accountwhether or not the change is authorized by prior agreement. Except asprovided in subsection (3), the lender shall give to the consumerwritten notice of any change at least 30 days before the effective date of the change.

      (3)   The notice specified in subsection (2) is not required if:

      (a)   The consumer elects to pay an amount designated on a billingstatement as including a new charge for a benefit offered to theconsumer when the benefit and charge constitute the change in terms andwhen the billing statement also states the amount payable if the newcharge is excluded;

      (b)   the change involves no significant cost to the consumer;or

      (c)   the change applies only to debts incurred after a datespecifiedin a notice of the change.

      (4)   The notice provided for in this section is given to the consumerwhen mailed to the consumer at the address used by the creditor for sendingperiodic billing statements.

      History:   L. 1973, ch. 85, § 44; L. 1980, ch. 77, § 4; L. 1981,ch. 94, § 4; L. 1982, ch. 93, § 5; L. 1983, ch. 79, § 4;L. 1985, ch. 82, § 4;L. 1987, ch. 81, § 1;L. 1993, ch. 49, § 1; July 1.