§14A-2-310. Revolving charge accounts.
1,131 words·~5 min read·
/ok/title-14a-consumer-credit-code/14a-2-310A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)Before opening any account under a revolving charge account plan, the creditor shall give to the consumer the following information:
(a)conditions under which a credit service charge may be
made, including the time period, if any, within which
any credit extended may be repaid without incurring a
credit service charge, except that the creditor may,
at his election and without disclosure, impose no such
credit service charge if payment is received after the
termination of such period. If no time period is
provided, the creditor shall disclose that fact;
(b)method of determining the balance upon which a credit
service charge will be computed;
(c)method of determining the amount of the credit service
charge, including any minimum or fixed amount imposed
as a finance charge, and where one or more periodic
rates may be used to compute the credit service
charge, each such rate and the range of balances to
which it is applicable;
(d)corresponding nominal annual percentage rate pursuant
to subsection
(3)of Section 2-304 of this title; if
more than one corresponding nominal annual percentage
rate may be used, each corresponding nominal annual
percentage rate shall be stated;
(e)identification of additional charges which may be made
and the method by which they will be determined;
(f)in cases where the creditor may retain or acquire a
security interest in property to secure the balances
resulting from credit extensions made pursuant to the
revolving charge account, a statement that a security
interest has been or will be taken in the property
purchased as part of the credit transaction, or
property not purchased as part of the credit
transaction identified by item or type;
(g)a statement in a form prescribed by and describing the
protection provided by Sections 161 and 170 of the
Federal Consumer Credit Protection Act to an obligor
and the responsibilities of a creditor under Sections
162 and 170 of the Federal Consumer Credit Protection
Act; and
(h)in the case of any account under a revolving charge
account plan which provides for any extension of
credit which is secured by the consumer's principal
dwelling, any information which:
(i)is required to be disclosed under subsection
of Section 2-310.2 of this title; and
(ii)the Administrator determines is not described in
any other paragraph of this subsection.
(2)If there is an outstanding balance at the end of the billing cycle or if a credit service charge is made with respect to the billing cycle, the creditor shall give to the consumer the
following information within a reasonable time after the end of the billing cycle:
(a)outstanding balance at the beginning of the billing
cycle;
(b)amount and date of each extension of credit during the
billing cycle and a brief identification of each
extension of credit on or accompanying the statement
in a form prescribed by regulations of the
Administrator to enable the consumer to identify the
transaction, or relate it to copies of sale vouchers
or similar instruments previously furnished; except
that a creditor's failure to disclose information in
accordance with this paragraph shall not be deemed a
failure to comply with this part if the creditor
maintains procedures reasonably adapted to procure and
provide such information and the creditor responds to
and treats any inquiry for clarification or
documentation as a billing error and an erroneously
billed amount in accordance with Section 161 of the
Federal Consumer Credit Protection Act. In lieu of
complying with the requirements of the previous
sentence, and to the extent permitted by rules of the
Administrator, in the case of any transaction in which
the creditor and the person responsible for providing
disclosure are the same as defined by the
Administrator and the person's revolving charge
account plan has fewer than fifteen thousand (15,000)
accounts, the creditor may elect to provide only the
amount and date of each extension of credit during the
billing cycle and the seller's name and location where
the transaction took place if a brief identification
of the transaction has been previously furnished and
the creditor responds to and treats any inquiry for
clarification or documentation as a billing error and
an erroneously billed amount in accordance with
Section 161 of the Federal Consumer Credit Protection
Act.
(c)amount credited to the account during the billing
cycle;
(d)amount of credit service charge debited during the
billing cycle, with an itemization or explanation to
show the total amount of credit service charge, if
any, due to the application of one or more periodic
percentages and the amount, if any, imposed as a
minimum or fixed charge;
(e)the periodic percentage used to calculate the credit
service charge; if more than one periodic percentage
is used, each percentage and the amount of the balance
to which each applies shall be disclosed;
(f)the balance on which the credit service charge is
computed and a statement of how the balance is
determined; if the balance is determined without first
deducting all amounts credited during the period, that
fact and the amounts credited shall also be stated;
(g)if the credit service charge for the billing cycle
exceeds fifty cents ($0.50) for a monthly or longer
billing cycle, or the pro rata part of the fifty cents
($0.50) for a billing cycle shorter than monthly, the
credit service charge expressed as an annual
percentage rate pursuant to paragraph
(b)of
subsection
(2)of Section 2-304 of this title; if more
than one periodic percentage is used to calculate the
credit service charge, the creditor, in lieu of
stating a single annual percentage rate, may state
more than one annual percentage rate and the amount of
the balance to which each annual percentage rate
applies;
(h)if the credit service charge for the billing cycle
does not exceed fifty cents ($0.50) for a monthly or
longer billing cycle, or the pro rata part of fifty
cents ($0.50) for a billing cycle shorter than
monthly, the corresponding nominal annual percentage
rate pursuant to subsection
(3)of Section 2-304 of
this title;
(i)outstanding balance at the end of the billing cycle;
(j)date by which or period, if any, within which payment
must be made to avoid additional credit service
charges, except that the creditor may, at his election
and without disclosure, impose no such additional
credit service charge if payment is received after
such date or the termination of such period; and
(k)address to be used by the creditor for the purpose of
receiving billing inquiries. Added by Laws 1969, c. 352, § 2-310, eff. July 1, 1969. Amended by Laws 1976, c. 263, § 1, emerg. eff. June 17, 1976; Laws 1982, c. 335, § 21, operative Oct. 1, 1982; Laws 1990, c. 260, § 15, operative July 1, 1990.