§14A-3-408. Change in terms of revolving loan accounts.
492 words·~2 min read·
/ok/title-14a-consumer-credit-code/14a-3-408A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(1)If a lender makes a change in the terms of a revolving loan account without complying with this section any additional cost or charge to the debtor resulting from the change is an excess charge and subject to the remedies available to debtors (Section 5-202) and to the Administrator (Section 6-113).
(2)A lender may change the terms of a revolving loan account whether or not the change is authorized by prior agreement. Except as provided in subsection
(3)of this section, the lender shall give to the debtor written notice of any change before the effective date of the change as follows:
(a)for changes in the rate of interest charged on such an
account, at least one written notice shall be given to
the debtor at least one billing cycle, but not less
than thirty
(30)days, prior to such change taking
effect; and
(b)for a change in the terms other than the rate of
interest, at least two written notices shall be given
to the debtor, with the first notice at least two
billing cycles, but not less than sixty
(60)days,
prior to such change taking effect.
(3)The notice specified in subsection
(2)of this section is not required if:
the debtor after receiving notice of the change agrees
in writing to the change;
(b)the debtor elects to pay an amount designated on a
billing statement (subsection
(2)of Section 3-309 of
this title) as including a new charge for a benefit
offered to the debtor when the benefit and charge
constitute the change in terms and when the billing
statement also states the amount payable if the new
charge is excluded;
(c)the change involves no significant cost to the debtor;
(d)the debtor has previously consented in writing to the
kind of change made and notice of the change is given
to the debtor at least thirty
(30)days prior to the
effective date of the change;
(e)the change applies only to debts incurred after a date
specified in a notice of the change given at least
thirty
(30)days prior to the effective date of the
change;
(f)the kind or type of change is of a class defined by
the Administrator by rule, as not requiring the
advance notice set forth in this section for the
protection of the consumer; or
(g)the change involves late payment charges or over-the-
limit charges.
(4)The notice provided for in this section is given to the debtor when mailed to the debtor at the address used by the lender for sending periodic billing statements. Added by Laws 1969, c. 352, § 3-408, eff. July 1, 1969. Amended by Laws 1982, c. 335, § 47, operative June 1, 1982; Laws 1983, c. 121, § 1, emerg. eff. May 17, 1983; Laws 1988, c. 35, § 8, operative July 1, 1988; Laws 1999, c. 95, § 1, emerg. eff. April 19, 1999.