§ 6345. Finance charges.

188 words·~1 min read·/pa/title-12/chapter-63/6345

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(a)General rule.-- Pursuant to this section and the provisions of a closed-end credit agreement or an open-end credit agreement, a seller and holder may charge, receive and collect a finance charge.

(b)Closed-end credit agreement.-- A finance charge under a closed-end credit agreement shall be:

(1)measured for a period between the date of the agreement and the due date of the last installment; and

(2)calculated for the period according to the actuarial method or the United States Rule method, at a rate agreed to by the buyer and the seller or holder.

(c)Open-end credit agreement.--

(1)Except as provided in paragraph (2), a finance charge on an open-end credit agreement:

(i)shall be computed based on the outstanding monthly balances; and

(ii)may not exceed the rate agreed to by the buyer and the seller or holder.

(2)A minimum finance charge of $1 per month may be made for each month, if the finance charge so computed is less than that amount.

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Cross References. Section 6345 is referred to in sections 6327, 6352, 6353 of this title.

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