State Codes and Statutes
Statutes > Utah > Title-70c > Chapter-04 > 70c-4-10270C-4-102. Change of terms of open-end consumer credit contracts.
(1) For purposes of this section, "change" includes to add, delete, or otherwise change aterm of an open-end consumer credit contract.
(2) (a) Notwithstanding Section 25-5-4, a creditor may change any written term of anopen-end consumer credit contract at any time while the open-end consumer credit contract is ineffect and apply the new term to the unpaid balance in the account if:
(i) the creditor mails or delivers written notice of the change:
(A) to all other parties to the open-end consumer credit contract that may be affected bythe change; and
(B) in a manner consistent with the provisions in effect on the day on which the notice isgiven of the Truth in Lending Act, 15 U.S.C. Section 1601 et seq., and its implementingRegulation Z; and
(ii) the open-end consumer credit contract expressly provides that the creditor maychange terms of the open-end consumer credit contract from time to time.
(b) A creditor may change an open-end consumer credit contract in accordance with thissection to include arbitration or other alternative dispute resolution mechanism.
(3) If the creditor has taken a security interest in any real property of the debtor to securepayment of the debt, and if the term to be changed affects the method for calculating minimumpayments, or is part of the finance charge, the creditor may apply the new term to an accountbalance relating to a credit transaction that occurred prior to the effective date of the change onlyif:
(a) the debtor expressly so agrees after notice of the change has been given by thecreditor; or
(b) (i) the creditor notifies the debtor that:
(A) further extensions of credit will not be permitted unless the debtor agrees that thenew term may be applied to an existing account balance; and
(B) any future charges to the account will constitute agreement; and
(ii) the debtor makes a charge to the account after receiving notice described inSubsection (3)(b)(i).
(4) Notice under this section is not required when:
(a) the change involves:
(i) late payment charges;
(ii) charges for documentary evidence;
(iii) over-the-limit charges;
(iv) a reduction of any component of a finance or other charge;
(v) suspension of future credit privileges; or
(vi) termination of an account or plan; or
(b) other than an increase in the periodic rate or other finance charge, the change resultsfrom:
(i) an agreement involving:
(A) a court proceeding;
(B) an arbitration proceeding; or
(C) another alternative dispute resolution proceeding; or
(ii) the consumer's default or delinquency.
(5) (a) The actual unpaid balance of the account at any point in time is not a term of the
open-end consumer credit contract for purposes of this section.
(b) With regard to a variable or adjustable interest rate, a periodic change in theapplicable rate is not a change subject to this section if no term of the open-end consumer creditcontract pertaining to calculation of the applicable rate is changed.
(6) (a) A creditor may include a notice required by this section of a change to anopen-end consumer credit contract on or in the same envelope as a periodic statement or othermaterial sent to the borrower by the creditor.
(b) Notwithstanding Subsection (6)(a), a creditor is not required to include a noticerequired by this section with any other material sent to the borrower.
Amended by Chapter 161, 2006 General Session
Amended by Chapter 172, 2006 General Session
