Bill Summary – FastDemocracy

FILED SENATE
                                                                                         Mar 16, 2023
                          GENERAL ASSEMBLY OF NORTH CAROLINA
                                                                 S.B. 329
                                      SESSION 2023           PRINCIPAL CLERK
     S                                                                    D
                               SENATE BILL DRS15148-MU-27
     Short Title:   Retail Installment Sales Act Amendments.                                    (Public)
     Sponsors:      Senators Perry and Britt (Primary Sponsors).
     Referred to:
                                      A BILL TO BE ENTITLED
 AN ACT TO AMEND THE RETAIL INSTALLMENT SALES ACT.
 The General Assembly of North Carolina enacts:
             SECTION 1. G.S. 25A-15 reads as rewritten:
 "§ 25A-15. Finance charge rates for consumer credit installment sale contracts.
     (a)     With respect to a consumer credit installment sale contract, a seller may contract for
 and receive a finance charge not exceeding that permitted by this section. For the purposes of
 this section, the finance charge rates are the rates that are required to be disclosed by the
 Consumer Credit Protection Act, except that official fees under G.S. 25A-10 shall be (i) included
 in the amount financed to the extent payment is deferred by the seller and (ii) excluded from the
 finance charge.
     (b)     Except as provided in this section, the finance charge rate imposed for a consumer
 credit installment sale contract shall not exceed the following rate twenty-four percent (24%) per
 annum except that a minimum finance charge of five dollars ($5.00) may be imposed:imposed.
             (1)     Twenty-four percent (24%) per annum where the amount financed is less than
                     one thousand five hundred dollars ($1,500).
             (2)     Twenty-two percent (22%) per annum where the amount financed is one
                     thousand five hundred dollars ($1,500) or greater, but less than two thousand
                     dollars ($2,000).
             (3)     Twenty percent (20%) where the amount financed is two thousand ($2,000)
                     or greater, but less than three thousand dollars ($3,000).
             (4)     Eighteen percent (18%) per annum where the amount financed is three
                     thousand dollars ($3,000) or greater.
     (c)     A finance charge rate not to exceed the higher of the rate established in subsection (b)
 of this section or the rate set forth below may be imposed in a consumer credit installment sale
 contract repayable in not less than six installments for a self-propelled motor vehicle:
             (1)     Eighteen percent (18%) Twenty percent (20%) per annum for vehicles one
                     and two model years old.
             (2)     Twenty percent (20%) Twenty-two percent (22%) per annum for vehicles
                     three model years old.
             (3)     Twenty-two percent (22%) Twenty-four percent (24%) per annum for
                     vehicles four model years old.
             (4)     Twenty-nine percent (29%) Thirty-one percent (31%) per annum for vehicles
                     five model years old and older.
 A motor vehicle is one model year old on January 1 of the year following the designated year
 model of the vehicle.
                                    *DRS15148-MU-27*
     General Assembly Of North Carolina                                                    Session 2023
    …."
              SECTION 2. G.S. 25A-29 reads as rewritten:
 "§ 25A-29. Default charges.
      (a)     If any installment is past due for 10 days or more according to the original terms of
 the consumer credit installment sale contract, a default charge may be made in an amount of
 fifteen dollars ($15.00). twenty dollars ($20.00). A default charge may be imposed only one time
 for each default.
      (b)     If a default charge is deducted from a payment made on the contract and the deduction
 results in a subsequent default on a subsequent payment, no default charge may shall be imposed
 for the default.
      (c)     If a default charge has been once imposed with respect to a particular default in
 payment, no default charge shall be imposed with respect to any future payments which that
 would not have been in default except for the previous default.
      (d)     A default charge for any particular default shall be is deemed to have been waived by
 the seller unless, within 45 days following the default, (i) the charge is collected or (ii) written
 notice of the charge is sent to the buyer."
              SECTION 3. This act becomes effective October 1, 2023, and applies to contracts
 entered into, modified, or renewed on or after that date.
     Page 2                                                                         DRS15148-MU-27
Statutes affected: 
Filed: 25A-15, 25A-29
Edition 1: 25A-15, 25A-29
Edition 2: 25A-15, 25A-29
Ratified: 25A-15, 25A-29
SL 2023-60: 25A-15, 25A-29