Bill Text: NC S574 | 2017-2018 | Regular Session | Amended
Bill Title: Consumer Credit/Revolving Credit Charges
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2017-04-03 - Ref To Com On Rules and Operations of the Senate [S574 Detail]
Download: North_Carolina-2017-S574-Amended.html
GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 2017
S 1
SENATE BILL 574
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Short Title: Consumer Credit/Revolving Credit Charges. |
(Public) |
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Sponsors: |
Senator Gunn (Primary Sponsor). |
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Referred to: |
Rules and Operations of the Senate |
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April 3, 2017
A BILL TO BE ENTITLED
AN ACT to modernize north carolina's revolving credit charges in order to level the playing field with out‑of‑state businesses.
The General Assembly of North Carolina enacts:
SECTION 1. G.S. 24‑11 reads as rewritten:
"§ 24‑11. Certain revolving credit charges.
(a) On the extension of
credit under an open‑end credit or similar plan (including revolving
credit card plans, plans and revolving charge accounts, but
excluding any loan made directly by a lender under a check loan, check credit
credit, or other such similar plan) under which no
service charge shall be imposed upon the consumer or debtor if the account is
paid in full within 25 days from the billing date, but upon which there may be
imposed an annual charge not to exceed twenty‑four dollars ($24.00),
there may be charged and collected interest, finance charges charges,
or other fees at a rate in the aggregate not to exceed one and one‑half
percent (11/2%) one and five‑sixths percent (1.833%) per month
computed on the unpaid portion of the balance of the previous month less
payments or credit within the billing cycle or the average daily balance
outstanding during the current billing period.
…
(b) On revolving credit
loans (including check loans, check credit credit, or other
revolving credit plans whereby a bank, banking institution institution,
or other lending agency makes direct loans to a borrower), if agreed to in
writing by the borrower, such the lender may collect interest and
service charges by application of a monthly periodic rate computed on the
average daily balance outstanding during the billing period, such rate not
to period. The rate shall not exceed one and one‑half
percent (11/2%).one and five‑sixths percent (1.833%).
…
(d1) A lender may charge a
party to a loan or extension of credit governed by this section a late payment
charge not to exceed five dollars ($5.00) on accounts having an outstanding
balance of less than one hundred dollars ($100.00) and ten dollars ($10.00) twenty‑five
dollars ($25.00) on accounts having an outstanding balance of one hundred
dollars ($100.00) or more, for any payment past due for 30 days or more;
provided, in no case shall the late charge exceed the outstanding principal
balance. If a late payment charge has been once imposed with respect to a late
payment, no late charge shall be imposed with respect to any future payment
which would have been timely and sufficient but for the previous default.
…."
SECTION 2. This act is effective when it becomes law and applies to charges imposed on or after that date.
