16a-2-202. Finance charge for consumer credit sales pursuant to open-end credit.
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16a-2-202. Finance charge for consumer credit sales pursuant to open-end credit.
(1)This section shall apply only to open-end consumer credit sales.
(2)A seller may charge a finance charge at any rate agreed to by the parties.
(3)A charge may be made in each billing cycle which is a percentage of an amount no greater than:
(a)The average daily balance of the account, which is the sum of the actual amounts outstanding each day during the billing cycle divided by the number of days in the cycle; or
(b)the unpaid balance of the account on the last day of the billing cycle.
(4)If the billing cycle is monthly, the charges may not exceed 1 / 12 of the annual rate agreed to by the consumer. If the billing cycle is not monthly, the maximum charge is that percentage which bears the same relation to the applicable monthly percentage as the number of days in the billing cycle bears to 30. For purposes of this subsection, a variation of not more than four days from month to month is "the last day of the billing cycle."
(5)For any period in which a finance charge is due, the parties may agree in writing on a minimum amount.