Section 328.226 - Prepaid funeral contract not in writing as voidable; agreement as to rate of interest; interest added or deducted in advance; computation of interest; financing of contract(1) A prepaid contract that is not in writing is voidable by any party to the prepaid contract.(2) A prepaid contract made in violation of this act or with a person who is not registered pursuant to section 6 is voidable by the contract buyer or by a personal representative of the contract beneficiary.(3) The parties to a prepaid contract may agree in writing for the payment of a rate of interest not to exceed 10.5% per annum with the following conditions: (a) A prepaid contract made under this act shall not provide for a rate of interest added or deducted in advance. Interest shall be computed from time to time only on the basis of unpaid balances.(b) A prepaid contract made under this act shall not provide that the rate of interest initially effective may be increased for any reason.(c) A contract seller shall not impose any fees or charges in addition to interest in connection with the financing of a prepaid contract.(4) A contract seller shall not offer financing or offer to obtain financing of a prepaid contract under terms and conditions other than allowed by this section.Amended by 2004, Act 21, s 14, eff. 1/1/2005.1986, Act 255, Eff. 7/1/1987.