§14A-2-202. Additional charges.
352 words·~2 min read·
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(1)In addition to the credit service charge permitted by this part, a seller may contract for and receive the following additional charges in connection with a consumer credit sale:
(a)official fees that are itemized and disclosed in
accordance with rules of the Administrator, reasonable
closing costs, and taxes;
(b)charges for insurance as described in subsection (2);
(c)charges for other benefits, including insurance,
conferred on the buyer, if the benefits are of value
to him and if the charges are reasonable in relation
to the benefits, are of a type which is not for
credit, and are excluded as permissible additional
charges from the credit service charge by rule adopted
by the Administrator; and
charges to recover the costs associated with
processing applications, including but not limited to
cost of services such as credit reports and credit
investigations.
(2)An additional charge may be made for insurance written in connection with the sale, other than insurance protecting the seller against the buyer's default or other credit loss,
(a)with respect to insurance against loss of or damage to
property, or against liability, if the seller
furnishes a clear and specific statement in writing to
the buyer, setting forth the cost of the insurance if
obtained from or through the seller, and stating that
the buyer may choose the person through whom the
insurance is to be obtained; and
(b)with respect to consumer credit insurance providing
life, accident or health coverage, if the insurance
coverage is not a factor in the approval by the seller
of the extension of credit and this fact is clearly
disclosed in writing to the buyer, and if, in order to
obtain the insurance in connection with the extension
of credit, the buyer gives specific affirmative
written indication of his desire to do so after
written disclosure to him of the cost thereof. Added by Laws 1969, c. 352, § 2-202, eff. July 1, 1969. Amended by Laws 1970, c. 282, § 2; Laws 1982, c. 335, § 11, operative June 1, 1982; Laws 1991, c. 331, § 59, eff. Sept. 1, 1991.