Ind. Code § 24-4.5-2-205

Current through P.L. 171-2024

Section 24-4.5-2-205 - Credit service charge on refinancing

With respect to a consumer credit sale, refinancing, or consolidation, the seller may by agreement with the buyer refinance the unpaid balance and may contract for and receive a credit service charge based on the amount financed resulting from the refinancing at a rate not exceeding that permitted by the provisions on credit service charge for consumer credit sales (IC 24-4.5-2-201). For the purpose of determining the credit service charge permitted, the amount financed resulting from the refinancing comprises the following:

(a) If:

(i) the transaction was not precomputed, the total of the unpaid balance and accrued charges on the date of refinancing; or

(ii) the transaction was precomputed, in the case of a transaction entered into before July 1, 2020, the amount which the buyer would have been required to pay upon prepayment pursuant to the provisions on rebate upon prepayment (IC 24-4.5-2-210) on the date of refinancing.

(b) Appropriate additional charges (IC 24-4.5-2-202), payment of which is deferred.

IC 24-4.5-2-205

Amended by P.L. 85-2020,SEC. 4, eff. 7/1/2020.

(Formerly: Acts1971 , P.L. 366, SEC.3.) As amended by P.L. 14-1992, SEC.17.