§ 6.1-330.77. (Repealed effective October 1, 2010) Charges by sellers ofgoods or services; certain premiums not construed as additional charges;penalty for violations of section.
A. Any seller of goods or services who extends credit under a closed-endinstallment credit plan or arrangement may impose finance charges at suchrate or rates as may be agreed upon by the seller and the purchaser.Deferrals and extensions of the time for payment, if allowed by the seller orhis assignee, may be subject to a finance charge, if agreed to in theoriginal contract or at the time of the renewal or extension. No additionalfinance charge shall be made for the extension of credit under such a plan orarrangement. If the total finance charge on the transaction is precomputedaccording to the actuarial method, the finance charge shall be calculated onthe assumption that all scheduled payments will be made when due. The balanceon which such finance charge may be imposed may include the deferred portionof the sales price, costs and charges incidental to the transaction,including any insurance premium financed in connection therewith, and theamount actually paid or to be paid by the seller to discharge a securityinterest or lien on the property traded in. The payment by a lessor todischarge a security interest or lien on the property traded in may beincluded in the gross capitalized cost of the goods leased and, for purposesof this chapter and Chapter 6 (§ 55-106 et seq.) of Title 55, shall notconstitute a loan. The debtor shall have the right to prepay in full onprecomputed transactions and receive a rebate of unearned finance chargedetermined in accordance with the Rule of 78, as illustrated in § 6.1-330.86,or other method elected by the seller under which the finance charge imposeddoes not exceed the amount that results from application of the Rule of 78 onextensions of credit with an initial maturity of sixty-one months or less. Onextensions of credit with an initial maturity of more than sixty-one months,the debtor shall receive a rebate computed under a method at least asfavorable to the debtor as the actuarial method. The seller may alsocondition such rebate upon receiving a minimum of twenty-five dollars infinance charges. This amount, to the extent not earned, may be withheld fromthe rebate required hereunder. A late charge pursuant to § 6.1-330.80 may beimposed. The seller may also charge and collect a document fee as may beagreed upon by the seller and purchaser in connection with such credit plan.The document fee shall be for the preparation, handling and processing ofdocuments relating to the goods or services and to the closing of thetransaction, and such fee shall not be considered a finance charge for thepurposes of this chapter.
B. Premiums for credit life insurance and credit accident and healthinsurance purchased by the debtor are not to be construed as an additionalcharge for the extension of credit if such insurance coverage is purchasedvoluntarily by the debtor. Premiums for property insurance on the goodspurchased or leased, including vendor's single interest insurance on suchgoods, are not to be construed as additional charges for the extension ofcredit, provided that a clear and conspicuous statement in writing isfurnished by the seller or lessor to the buyer or lessee setting forth thecost of the insurance if obtained from or through the seller or lessor andstating that the buyer or lessee may choose the person through which theinsurance is to be obtained.
(1987, c. 622; 1988, c. 145; 1990, c. 338; 1999, cc. 62, 373.)
§ 6.1-330.77. (Repealed effective October 1, 2010) Charges by sellers ofgoods or services; certain premiums not construed as additional charges;penalty for violations of section.
A. Any seller of goods or services who extends credit under a closed-endinstallment credit plan or arrangement may impose finance charges at suchrate or rates as may be agreed upon by the seller and the purchaser.Deferrals and extensions of the time for payment, if allowed by the seller orhis assignee, may be subject to a finance charge, if agreed to in theoriginal contract or at the time of the renewal or extension. No additionalfinance charge shall be made for the extension of credit under such a plan orarrangement. If the total finance charge on the transaction is precomputedaccording to the actuarial method, the finance charge shall be calculated onthe assumption that all scheduled payments will be made when due. The balanceon which such finance charge may be imposed may include the deferred portionof the sales price, costs and charges incidental to the transaction,including any insurance premium financed in connection therewith, and theamount actually paid or to be paid by the seller to discharge a securityinterest or lien on the property traded in. The payment by a lessor todischarge a security interest or lien on the property traded in may beincluded in the gross capitalized cost of the goods leased and, for purposesof this chapter and Chapter 6 (§ 55-106 et seq.) of Title 55, shall notconstitute a loan. The debtor shall have the right to prepay in full onprecomputed transactions and receive a rebate of unearned finance chargedetermined in accordance with the Rule of 78, as illustrated in § 6.1-330.86,or other method elected by the seller under which the finance charge imposeddoes not exceed the amount that results from application of the Rule of 78 onextensions of credit with an initial maturity of sixty-one months or less. Onextensions of credit with an initial maturity of more than sixty-one months,the debtor shall receive a rebate computed under a method at least asfavorable to the debtor as the actuarial method. The seller may alsocondition such rebate upon receiving a minimum of twenty-five dollars infinance charges. This amount, to the extent not earned, may be withheld fromthe rebate required hereunder. A late charge pursuant to § 6.1-330.80 may beimposed. The seller may also charge and collect a document fee as may beagreed upon by the seller and purchaser in connection with such credit plan.The document fee shall be for the preparation, handling and processing ofdocuments relating to the goods or services and to the closing of thetransaction, and such fee shall not be considered a finance charge for thepurposes of this chapter.
B. Premiums for credit life insurance and credit accident and healthinsurance purchased by the debtor are not to be construed as an additionalcharge for the extension of credit if such insurance coverage is purchasedvoluntarily by the debtor. Premiums for property insurance on the goodspurchased or leased, including vendor's single interest insurance on suchgoods, are not to be construed as additional charges for the extension ofcredit, provided that a clear and conspicuous statement in writing isfurnished by the seller or lessor to the buyer or lessee setting forth thecost of the insurance if obtained from or through the seller or lessor andstating that the buyer or lessee may choose the person through which theinsurance is to be obtained.
(1987, c. 622; 1988, c. 145; 1990, c. 338; 1999, cc. 62, 373.)
§ 6.1-330.77. (Repealed effective October 1, 2010) Charges by sellers ofgoods or services; certain premiums not construed as additional charges;penalty for violations of section.
A. Any seller of goods or services who extends credit under a closed-endinstallment credit plan or arrangement may impose finance charges at suchrate or rates as may be agreed upon by the seller and the purchaser.Deferrals and extensions of the time for payment, if allowed by the seller orhis assignee, may be subject to a finance charge, if agreed to in theoriginal contract or at the time of the renewal or extension. No additionalfinance charge shall be made for the extension of credit under such a plan orarrangement. If the total finance charge on the transaction is precomputedaccording to the actuarial method, the finance charge shall be calculated onthe assumption that all scheduled payments will be made when due. The balanceon which such finance charge may be imposed may include the deferred portionof the sales price, costs and charges incidental to the transaction,including any insurance premium financed in connection therewith, and theamount actually paid or to be paid by the seller to discharge a securityinterest or lien on the property traded in. The payment by a lessor todischarge a security interest or lien on the property traded in may beincluded in the gross capitalized cost of the goods leased and, for purposesof this chapter and Chapter 6 (§ 55-106 et seq.) of Title 55, shall notconstitute a loan. The debtor shall have the right to prepay in full onprecomputed transactions and receive a rebate of unearned finance chargedetermined in accordance with the Rule of 78, as illustrated in § 6.1-330.86,or other method elected by the seller under which the finance charge imposeddoes not exceed the amount that results from application of the Rule of 78 onextensions of credit with an initial maturity of sixty-one months or less. Onextensions of credit with an initial maturity of more than sixty-one months,the debtor shall receive a rebate computed under a method at least asfavorable to the debtor as the actuarial method. The seller may alsocondition such rebate upon receiving a minimum of twenty-five dollars infinance charges. This amount, to the extent not earned, may be withheld fromthe rebate required hereunder. A late charge pursuant to § 6.1-330.80 may beimposed. The seller may also charge and collect a document fee as may beagreed upon by the seller and purchaser in connection with such credit plan.The document fee shall be for the preparation, handling and processing ofdocuments relating to the goods or services and to the closing of thetransaction, and such fee shall not be considered a finance charge for thepurposes of this chapter.
B. Premiums for credit life insurance and credit accident and healthinsurance purchased by the debtor are not to be construed as an additionalcharge for the extension of credit if such insurance coverage is purchasedvoluntarily by the debtor. Premiums for property insurance on the goodspurchased or leased, including vendor's single interest insurance on suchgoods, are not to be construed as additional charges for the extension ofcredit, provided that a clear and conspicuous statement in writing isfurnished by the seller or lessor to the buyer or lessee setting forth thecost of the insurance if obtained from or through the seller or lessor andstating that the buyer or lessee may choose the person through which theinsurance is to be obtained.
(1987, c. 622; 1988, c. 145; 1990, c. 338; 1999, cc. 62, 373.)
