Section 12-610.1 - Consumer goods - Refinancing of agreement at higher rateAny agreement made before July 1, 1982, which is refinanced at a higher rate allowed by § 12-609(f) or § 12-610(3) of this subtitle must comply with the following requirements:
(1) The holder must give the following disclosures in writing to the buyer prior to the execution by the buyer of the new agreement: If you do agree to consolidate your existing obligation, you will be paying an annual percentage rate of . . . .% on the existing net balance of $. . . . . ., instead of the rate of . . . . .% which you are now paying.
Schedule of Monthly Payments |
Separate Purchase Agreements | Consolidated Purchase Agreement |
$ . . . . per month for | $ . . . . per month for |
the next . . . . months | the next . . . . months |
then | |
$ . . . . per month for | |
. . . . months after that | |
Total of Payments |
Separate Agreements | Consolidated Agreement |
$ . . . . total of | $ . . . . total of payments |
payments for your | for your consolidated |
existing purchases | purchases |
. . . . total of payments | |
for your new purchases | |
(2) The holder must allow the buyer the choice of repaying his existing purchase balance at the originally agreed upon rate and obtaining any additional extension of credit as a separate agreement, notwithstanding any law which limits the holder's ability to have more than 1 agreement with the same buyer;(3) An existing balance may be refinanced only upon the buyer's request;(4) The holder must refund or credit to the buyer's account any unearned finance charge and any returned insurance premiums upon the cancellation of insurance sold in connection with the purchases;(5) The holder must allow the buyer the right to cancel the consolidated purchase agreement within 3 business days and to elect the separate account option pursuant to subsection (2). The holder shall provide to the buyer conspicuous notice of the provisions of this subsection; and(6) Nothing in this subsection shall prohibit the receipt of goods or services by the buyer at the time the consolidated purchase agreement is made.