Section 1201 - DefinitionsUnless the context or subject matter otherwise requires, the definitions given in this article govern the construction of this act.
(1)"Goods" means tangible chattels bought for use primarily for personal, family, or household purposes, including certificates or coupons exchangeable for such goods, but does not include goods which come within the provisions of the act of August 14, 1963 (P.L. 1082), known as the "Home Improvement Finance Act," and does not include any vehicle covered by the act of June 28, 1947 (P.L. 1110), known as the "Motor Vehicle Sales Finance Act." (2)"Services" means work, labor and services for other than a commercial or business use, including services furnished in connection with the sale or repair of goods as defined in section 201(1) or furnished in connection with the repair of motor vehicles, but does not include the services which come within the provisions of the act of August 14, 1963 (P.L. 1082), known as the "Home Improvement Finance Act," and does not include any vehicle covered by the act of June 28, 1947 (P.L. 1110), known as the "Motor Vehicle Sales Finance Act," or services for which the tariffs, rates, charges, costs, or expenses, including in each instance the time sale price, is required by law to be filed with or approved by the Commonwealth or Federal Government or any official department, commission, or agency of the Commonwealth of Pennsylvania or the United States.(3)"Retail seller" or "seller" means a person engaged in the business of selling goods or furnishing services to retail buyers.(4)"Retail buyer" or "buyer" means a person who buys goods or obtains services from a retail seller in a retail installment sale and not principally for the purpose of resale.(5)"Retail installment sale" or "sale" means the sale of goods or the furnishing of services by a retail seller to a retail buyer for a time sale price payable in installments.(6)"Retail installment contract" or "contract" means any contract for a retail installment sale between a buyer and a seller which provides for repayment in installments, whether or not such contract contains a title retention provision, and in which a time price differential is computed upon and added to the unpaid balance at the time of sale or where no time price differential is added but the goods or services are available at a lesser price if paid by cash or where the buyer, if he had paid cash, would have received any additional goods or services or any higher quality goods or services at no added cost over the total amount he pays in installments. When taken or given in connection with a retail installment sale, the term includes but is not limited to a security agreement and a contract for the bailment or leasing of goods by which the bailee or lessee contracts to pay as compensation for their use a sum substantially equivalent to or in excess of their value and by which it is agreed that the bailee or lessee is bound to become, or has the option of becoming, the owner of the goods upon full compliance with the terms of the contract. The term also includes any contract, obligation or agreement in the form of bailment or lease if the bailee or lessee has the option to renew the contract by making the payments specified in the contract, the contract obligates the bailor or lessor to transfer ownership of the property to the bailee or lessee upon full compliance by the bailee or lessee with his obligations under the contract, including any obligation incurred with respect to the exercise of an option by the bailee or lessee to renew the contract, and the payments contracted for by bailee or lessee, including those payments pursuant to the exercise of an option by the bailee or lessee to renew the contract, are substantially equivalent to or in excess of the aggregate value of the property and services involved. With respect to a sale described in the previous sentence, the disclosures required under this title shall be calculated on the assumption that the bailee or lessee will exercise all of his options to renew the contract, make all payments specified in the contract, and become the owner of the property involved.(7)"Retail installment account" or "installment account" or "revolving account" means an account established by an agreement pursuant to which the buyer promises to pay, in installments, to a retail seller or to a financing agency, his outstanding balance incurred in retail installment sales, whether or not a security interest in the goods sold is retained by the seller, and which provides for a service charge which is expressed as a percent of the periodic balances to accrue thereafter providing such charge is not capitalized or stated as a dollar amount in such agreement.(8)"Cash sale price" means the cash sale price stated in a retail installment contract for which the seller would sell or furnish to the buyer and the buyer would buy or obtain from the seller the goods or services which are the subject matter of a retail installment contract if the sale were a sale for cash instead of a retail installment sale. The cash sale price may include any taxes and cash sale prices for accessories and services, if any, included in a retail installment sale.(9)"Time sale price" means the total of the cash sale price of the goods or services and the amounts, if any, included for insurance, official fees and service charge.(10)"Time price differential" or "service charge" means the amount however denominated or expressed which the retail buyer contracts to pay or pays for the privilege of purchasing goods or services to be paid for by the buyer in installments; it does not include the amounts, if any, charged for insurance premiums, delinquency charge, attorney's fees, court costs, collection expenses or official fees. Wherever either of such terms is required to be used under the provisions of this act the other may be used interchangeably.(11)"Unpaid balance" means the cash sale price of the goods or services which are the subject matter of the retail installment sale, plus the amounts, if any, included in a retail installment sale for insurance and official fees, minus the amount of the buyer's down payment in money or goods.(12)"Time balance" means the total of the unpaid balance and the amount of the service charge, if any.(13)"Holder" means the retail seller who acquires a retail installment contract or installment account executed, incurred or entered into by a retail buyer, or if the contract or installment account is purchased by a financing agency or other assignee, the financing agency or other assignee. The term does not include the pledgee of or the holder of a security interest in an aggregate number of such contracts or installment accounts to secure a bona fide loan thereon.(14)"Official fees" means the fees required by law and actually to be paid to the appropriate public officer to perfect a lien or other security interest, retained or taken by a seller under a retail installment contract or installment account.(15)"Person" means an individual, partnership, corporation, association or other group, however organized.(16)"Financing agency" means a person engaged in this Commonwealth in whole or in part in the business of purchasing retail installment contracts, or installment accounts from one or more retail sellers. The term includes but is not limited to a bank, bank and trust company, private banker, or investment company.(17)"Purchase money loan" means a cash advance which is received by a customer in return for a service charge, time-price differential, finance charge or interest which is applied, in whole or substantial part, to a purchase of goods or services from a seller who is affiliated with the creditor by common control or business arrangement.(18)"Purchase money lender" means any creditor or financing agency who makes or extends purchase money loans.1966, Oct. 28, P.L. 55, art. II, § 201. Amended 1982, March 25, P.L. 199, No. 68, § 2, imd. effective; 1988, Feb. 26, P.L. 78, No. 15, § 1, imd. effective. Reenacted 1989, July 11, P.L. 573, No. 57, § 1, imd. effective.