S*583 Session 106 (1985-1986)
S*0583(Rat #0185, Act #0121 of 1985) General Bill, By
Senate Banking and Insurance
Similar(S 464, H 2539)
A Bill to amend Sections 37-1-109, 37-1-201, 37-1-301, 37-2-102, 37-5-102,
37-5-104, 37-5-106, 37-5-108, 37-5-109, 37-5-110, 37-5-111, 37-5-112,
37-5-202, 37-6-102, 37-6-201, and 37-6-203, Code of Laws of South Carolina,
1976, relating to the South Carolina Consumer Protection Code, to amend
Chapter 2 of Title 37 by adding Part 7, and to amend Chapter 6 of Title 37 by
adding Section 37-6-204 so as to provide for the regulation of consumer
rental-purchase agreements.-amended title
04/25/85 Senate Introduced, read first time, placed on calendar
without reference SJ-1764
04/26/85 Senate Read second time SJ-1788
04/26/85 Senate Ordered to third reading with notice of
amendments SJ-1788
04/30/85 Senate Read third time and sent to House SJ-1870
04/30/85 Senate Reconsidered SJ-1870
05/07/85 Senate Amended SJ-1947
05/07/85 Senate Read third time SJ-1949
05/08/85 House Introduced, read first time, placed on calendar
without reference HJ-2971
05/09/85 House Objection by Rep. Aydlette, Foxworth, Davenport &
Holt HJ-3098
05/15/85 House Objection withdrawn by Rep. Aydlette, Foxworth &
Holt HJ-3194
05/22/85 House Read second time HJ-3368
05/23/85 House Read third time and enrolled HJ-3462
05/28/85 Ratified R 185
05/31/85 Signed By Governor
05/31/85 Effective date 01/01/86
05/31/85 Act No. 121
06/11/85 Copies available
(A121, R185, S583)
AN ACT TO AMEND SECTIONS 37-1-109, 37-1-201, 37-1-301, 37-2-102, 37-5-102,
37-5-104, 37-5-106, 37-5-108, 37-5-109, 37-5-110, 37-5-111, 37-5-112, 37-5-202,
37-6-102, 37-6-201, AND 37-6-203, CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING
TO THE SOUTH CAROLINA CONSUMER PROTECTION CODE, TO AMEND CHAPTER 2 OF TITLE 37
BY ADDING PART 7, AND TO AMEND CHAPTER 6 OF TITLE 37 BY ADDING SECTION 37-6-204
SO AS TO PROVIDE FOR THE REGULATION OF CONSUMER RENTAL-PURCHASE AGREEMENTS.
Be it enacted by the General Assembly of the State of South Carolina:
Dollar amount
SECTION 1. Subsection (6) of Section 37-1-109 of the 1976 Code, is amended to
read:
"(6) The dollar amounts in the following sections of this title are
subject to change in accordance with this section: 37-2-104(1)(e),
37-2-106(1)(b), 37-2-203(1), 37-2-407(1), 37-2-705(1)(a) and (b), 37-3-104(1)(d),
37-3-203(1), 37-3-510, 37-3-511, 37-3-514, 37-5-103(2), (3), and (4)."
Definition
SECTION 2. Item (b) of subsection (7) of Section 37-1-201 of the 1976 Code is
amended to read:
"(b) 'Consumer credit transaction' means a consumer credit sale or
consumer loan or a refinancing or consolidation thereof, a consumer lease, or a
consumer rental-purchase agreement."
Definition
SECTION 3. Subsection (11) of Section 37-1-301 of the 1976 Code is amended to
read:
"(11) 'Consumer credit transaction' means a consumer credit sale (Section
37-2-104) or consumer loan (Section 37-3-104) or a refinancing or consolidation
thereof, a consumer lease (Section 37-2-106), or a consumer rental-purchase
agreement (Section 37-2-701)."
Definition
SECTION 4. Subsection (13) of Section 37-1-301 of the 1976 Code is amended to
read:
"(13) 'Creditor' means the person who grants credit in a credit
transaction or, except as otherwise provided, an assignee of a creditor's right
to payment, but use of the term does not in itself impose on an assignee any
obligation of his assignor. In case of credit granted pursuant to a credit card,
'creditor' means the card issuer and not another person honoring the credit card.
For purposes of Chapters 1, 5, and 6 and Part 7 of Chapter 2, the term 'creditor'
also means a lessor in a consumer rental-purchase agreement (Section
37-2-701)."
Applicability of chapter
SECTION 5. Section 37-2-102 of the 1976 Code is amended to read:
"Section 37-2-102. This chapter applies to consumer credit sales, including
home solicitation sales, and consumer leases; in addition, Part 6 applies to
other than consumer credit sales and Part 7 applies to consumer rental-purchase
agreements."
Consumer Rental-Purchase Agreement
SECTION 6. Chapter 2 of Title 37 of the 1976 Code is amended by adding Part 7
to read:
"Part 7
CONSUMER RENTAL-PURCHASE AGREEMENTS
Section 37-2-701. In this Part:
(1) 'Advertisement' means a commercial message in any medium that promotes,
directly or indirectly, a consumer rental-purchase agreement.
(2) 'Consummation' means the time a lessee becomes contractually obligated on
a consumer rental-purchase agreement.
(3) 'Lessee' means a natural person who rents personal property under a
consumer rental-purchase agreement.
(4) 'Lessor' means a person who regularly provides the use of property through
consumer rental-purchase agreements and to whom the obligation is initially
payable on its face.
(5) 'Personal property' means any property that is not real property under the
laws of the state where it is located when it is made available for a consumer
rental-purchase agreement.
(6) 'Consumer rental-purchase agreement' means an agreement for the use of
personal property by an individual primarily for personal, family, or household
purposes, for an initial period of four months or less (whether or not there is
any obligation beyond the initial period) that is automatically renewable with
each payment and that permits the consumer to become the owner of the property.
The term does not include a consumer credit sale as defined in Section 37-2-104,
or a consumer loan as defined in Section 37-3-104, or a refinancing or
consolidation thereof, or a consumer lease as defined in Section 37-2-106.
Section 37-2-702. (1) In a consumer rental-purchase agreement, the lessor shall
disclose the following items, as applicable:
(a) The total of scheduled payments.
(b) The number, amounts, and timing of all payments including taxes paid to
or through the lessor necessary to acquire ownership of the property.
(c) A statement that the lessee will not own the property until the lessee
has made the number of payments and the total of scheduled payments necessary to
acquire ownership of the property.
(d) A statement that the total of payments does not include other charges,
such as late payment charges, and that the consumer should see the contract for
an explanation of these charges.
(e) If applicable, a statement that the lessee is responsible for the fair
market value of the property if and as of the time it is lost, stolen, damaged,
or destroyed.
(f) A statement indicating whether the property is new or used, provided,
it is not a violation of this section to indicate that the property is used if
it is actually new.
(g) A statement that at any time after the first periodic payment is made,
the lessee may acquire ownership of the property by tendering fifty-five percent
of the difference between the total of scheduled payments and the total amount
paid on the account.
(h) The administrator of the Department of Consumer Affairs may promulgate
regulations setting requirements for the order and conspicuousness of the
disclosures set forth in subitems (a) through (h) of this Section. These
regulations may allow these disclosures to be made in accordance with model forms
prepared by the administrator.
(2) In a consumer rental-purchase agreement, the lessor shall make the
disclosures required by subsection (1) of this section clearly and conspicuously,
and a copy must be given to the lessee for his records.
(3) In a consumer rental-purchase agreement, the lessor shall make the
disclosures in the manner required by subsection (2) of this section before
consummation of the transaction.
Section 37-2-703. (a) A renegotiation occurs when an existing consumer
rental-purchase agreement is satisfied and replaced by a new consumer
rental-purchase agreement undertaken by the same lessor and lessee. A
renegotiation is a new lease requiring new disclosures. However, the following
events are not treated as renegotiations:
(1) The addition or return of property in a multiple-item agreement or the
substitution of the leased property, if in either case the average payment
allocable to a payment period is not changed by more than twenty-five percent.
(2) A deferral or extension of one or more periodic payments, or portions
of a periodic payment.
(3) A reduction in charges in the agreement.
(4) A lease or agreement involved in a court proceeding.
(b) No disclosures are required for any extension of a consumer
rental-purchase agreement.
Section 37-2-704. (1) If an advertisement for a consumer rental-purchase
agreement refers to or states the amount of any payment or the right to acquire
ownership for a specific item, the advertisement must also clearly and
conspicuously state the following terms as applicable:
(a) that the transaction advertised is a consumer rental-purchase agreement.
(b) the total of payments necessary to acquire ownership.
(c) that the lessee will not own the property until the total amount
necessary to acquire ownership is paid either by payment of the total of payments
over the full term of the agreement or by prepayment as provided for by law.
(2) Notwithstanding the requirements of subsection (1) of this section, if the
advertisement is published by way of radio announcement or on a roadside
billboard, the lessor need only make the disclosures required by items (a) and
(c) of subsection (1).
Section 37-2-705. (1) With respect to a consumer rental-purchase agreement, the
parties may contract for delinquency charges as follows:
(a) For consumer rental-purchase agreements with payment or renewal dates
which are monthly or less often than monthly, a delinquency charge not exceeding
four dollars may be assessed on any payment not made within five business days
after payment is due or return of the property is required.
(b) For consumer rental-purchase agreements with payment or renewal date
options to renew more frequently than monthly, a delinquency charge not exceeding
two dollars may be assessed on any payment not made within three business days
after payment is due or the return of the property is required.
(2) A delinquency charge on a consumer rental-purchase agreement may be
collected only once on any scheduled payment no matter how long it remains in
default. A delinquency charge may be collected at the time it accrues or at any
time thereafter. No delinquency charge may be assessed against a payment that
is timely made even though an earlier delinquency charge has not been paid in
full.
Section 37-2-706. (1) In a consumer rental-purchase agreement, the lessor may
contract for and receive an initial nonrefundable fee not to exceed five dollars.
Should any security deposit be required by the lessor, the amount and conditions
under which it is returned must be disclosed with the disclosures required by
Section 37-2-702.
(2) In a consumer rental-purchase agreement, the lessor may contract for and
receive a delivery charge not to exceed fifteen dollars or, in the event of a
consumer rental-purchase agreement covering more than five items, a delivery
charge not to exceed forty-five dollars, only if the lessor actually delivers the
item to the lessee's dwelling and the delivery charge is disclosed with the
disclosures required by Section 37-2-702. The delivery charge may be assessed
in lieu of and not in addition to the initial charge in subsection (1) of this
section.
(3) In a consumer rental-purchase agreement, a lessor may contract for and
receive a charge for picking up payments from the lessee if the lessor is
required or requested to visit the lessee's dwelling to pick up a payment. In
a consumer rental purchase agreement with payment or renewal dates which are
monthly or less frequent than monthly, this charge may not be assessed more than
three times in any six-month period. In consumer rental-purchase agreements with
payments or renewal options more frequently than monthly, this charge may not be
assessed more than six times in any six-month period. No charge assessed
pursuant to this subsection may exceed seven dollars. This charge is in lieu of
any delinquency charge assessed for the applicable payment period.
Section 37-2-707. Except as specifically provided for in this part, a consumer
rental-purchase agreement may not provide for any charges as a result of the
default of the lessee. A provision in violation of this section is
unenforceable.
Section 37-2-708. With respect to a consumer rental-purchase agreement, the
lessor may not take a negotiable instrument other than a check dated not later
than ten days after its issuance as evidence of the obligation of the consumer.
Section 37-2-709. (1) With respect to a consumer rental-purchase agreement, an
assignee of the rights of the lessor is subject to all claims and defenses of the
consumer against the lessor arising from the lease of property or services,
notwithstanding that the assignee is the holder in due course of a negotiable
instrument issued in violation of the provisions prohibiting certain negotiable
instruments (Section 37-2-707).
(2) A claim or defense of a consumer specified in subsection (1) may be
asserted against the assignee under this section only if the consumer has made
a good faith attempt to obtain satisfaction from the lessor with respect to the
claim or defense and then only to the extent of the amount owing the assignee
with respect to the sale or lease of the property or services as to which the
claim or defense arose at the time the assignee has written notice of the claim
or defense. Written notice of the claim or defense may be given before the
attempt specified in this subsection. For the purposes of this section, written
notice is any written notification other than notice on a coupon, billing
statement, or other payment medium or materials supplied by the assignee.
(3) An agreement may not limit or waive the claims or defenses of a lessee
under this section.
Section 37-2-710. A lessor may not take an assignment of earnings of the buyer
or lessee for payment or as security for payment of a debt arising out of a
consumer rental-purchase agreement. An assignment of earnings in violation of
this section is unenforceable by the assignee of the earnings and revocable by
the buyer or lessee. This section does not prohibit an employee from authorizing
deductions from his earnings if the authorization is revocable.
Section 37-2-711. The lessee is authorized to pay the original lessor until the
lessee receives written notification of assignment of the rights to payment
pursuant to a consumer rental-purchase agreement and that payment is to be made
to the assignee. A notification which does not reasonably identify the rights
assigned is ineffective. If requested by the lessee, the assignee must
seasonably furnish reasonable proof that the assignment has been made and unless
he does so the lessee may pay the lessor.
Section 37-2-712. A lessee may not authorize any person to confess judgment on
a claim arising out of a consumer rental-purchase agreement. An authorization
in violation of this section is void.
Section 37-2-713. In a consumer rental-purchase agreement, at any time after the
lessee has made the first periodic payment, the lessee may:
(1) return the rented property to the lessor,
(2) continue making periodic payments or renewals as provided for in the
agreement for the remaining term of the agreement, or
(3) purchase the property by tendering fifty-five percent of the difference
between the total of scheduled payments and the total amount paid on the account.
Section 37-2-714. (1) A lessee who fails to make timely periodic payment or
payments has the right to reinstate the original consumer rental-purchase
agreement without losing any rights or options previously acquired under the
consumer rental-purchase agreement if both of the following apply:
(a) The consumer rental-purchase agreement is not more than sixty days in
default.
(b) One periodic payment has been missed and the lessee has surrendered the
item to the lessor, if requested by the lessor, during the time in which payments
were missed.
(2) As a condition precedent to reinstatement of the consumer rental-purchase
agreement, a lessor may charge the outstanding balance of any accrued payments
and delinquency charges plus delivery charges allowable by Section 37-2-706(2)
if redelivery of the item is necessary.
(3) If reinstatement occurs pursuant to this section, the lessor shall provide
the lessee with either the same item leased by the lessee prior to reinstatement
or a substitute item of comparable quality and condition. If a substitute item
is provided the lessor shall provide the lessee with all the information required
by Section 37-2-702."
Applicability of part
SECTION 7. Section 37-5-102 of the 1976 Code is amended to read:
"Section 37-5-102. This part applies to actions or other proceedings to
enforce rights arising from consumer credit sales, consumer leases, consumer
loans, and consumer rental-purchase agreements; and, in addition, to extortionate
extensions of credit (Section 37-5-107)."
Debt
SECTION 8. Section 37-5-104 of the 1976 Code is amended to read:
"Section 37-5-104. With respect to a debt arising from a consumer credit
sale, a consumer lease, a consumer loan, or a consumer rental-purchase agreement,
regardless of where made, the creditor may not attach unpaid earnings of the
debtor by garnishment or like proceedings."
Discharge of employee
SECTION 9. Section 37-5-106 of the 1976 Code is amended to read:
"Section 37-5-106. No employer shall discharge an employee for the reason
that a creditor of the employee has subjected or attempted to subject unpaid
earnings of the employee to garnishment or like proceedings directed to the
employer for the purpose of paying a judgment arising from a consumer credit
sale, consumer lease, consumer loan, or a consumer rental-purchase
agreement."
Consumer credit transaction
SECTION 10. Subsection (2) of Section 37-5-108 of the 1976 Code, as amended by
Act 385 of 1982, is further amended to read:
"(2) With respect to a consumer credit transaction, if the court as a
matter of law finds that a person has engaged in, is engaging in, or is likely
to engage in unconscionable conduct in collecting a debt arising from that
transaction, the court may grant an injunction and award the consumer any treble
damages he has sustained. For purposes of this subsection and subsection (3),
the term 'collecting a debt' in a consumer credit transaction includes the
collection or the attempt to collect any rental charge or any other fee or charge
or any item rented to a lessee in connection with a consumer rental-purchase
agreement as described in Section 37-2-701(6)."
Consideration to be given to factor
SECTION 11. Subsection (4) of Section 37-5-108 of the 1976 Code is amended to
read:
"(4) In applying subsection (1), consideration must be given to each of
the following factors, among others, as applicable:
(a) belief by the seller, lessor, or lender at the time a transaction is
entered into that there is no reasonable probability of payment in full of the
obligation by the consumer or debtor; provided, however, that the rental renewals
necessary to acquire ownership in a consumer rental-purchase agreement shall not
be construed to be the obligation contemplated in this code section;
(b) in the case of a consumer credit sale, consumer lease, or consumer
rental-purchase agreement, knowledge by the seller or lessor at the time of the
sale or lease of the inability of the consumer to receive substantial benefits
from the property or services sold or leased;
(c) in the case of a consumer credit sale, consumer lease, or consumer
rental-purchase agreement, gross disparity between the price of the property or
services sold or leased and the value of the property or services measured by the
price at which similar property or services are readily obtainable in consumer
credit transactions by like consumers;
(d) the fact that the creditor contracted for or received separate charges
for insurance with respect to a consumer credit sale, consumer loan, or consumer
rental-purchase agreement with the effect of making the sale or loan considered
as a whole, unconscionable;
(e) the fact that the seller, lessor, or lender has knowingly taken advantage
of the inability of the consumer or debtor reasonably to protect his interests
by reason of physical or mental infirmities, ignorance, illiteracy, inability to
understand the language of the agreement, or similar factors."
Agreement of parties
SECTION 12. Section 37-5-109 of the 1976 Code is amended to read:
"Section 37-5-109. An agreement of the parties to a consumer credit
transaction with respect to default on the part of the consumer is enforceable
only to the extent that:
(1) the consumer fails to make a payment as required by agreement; provided,
with respect to a consumer rental-purchase agreement, a lessee defaults when he
fails to renew an agreement and fails to return the rented property or make
arrangements for its return as provided for by the agreement; or
(2) the prospect of payment, performance, or realization of collateral is
significantly impaired; the burden of establishing the prospect of significant
impairment is on the creditor."
Notice
SECTION 13. Section 37-5-110 of the 1976 Code is amended by adding subsections
(3) and (4) at the end to read:
"(3) Notwithstanding subsections (1) and (2), in consumer rental-purchase
agreements, after a consumer has been in default for three business days and has
not voluntarily surrendered possession of the rented property, a lessor may give
the consumer the notice provided in subsection (4) of this section. A lessor
gives the notice to the consumer under this section when he delivers notice to
the consumer or mails the notice to him at his address.
(4) The notice must be in writing and conspicuously state: the name, address
and telephone number of the lessor to whom payment is to be made, a brief
identification of the transaction, the consumer's right to cure the default, and
the amount of payment and date by which payment must be made to cure the default.
A notice in substantially the following form complies with this subsection:
'(name, address and telephone number of lessor)
(account number, if any)
(brief identification of transaction)
( ) is LAST DAY FOR PAYMENT, ( ) is the AMOUNT NOW DUE. You have
failed to renew your rental agreement(s). If you pay the AMOUNT NOW DUE (above)
by the LAST DAY FOR PAYMENT (above), you may continue with the contract as though
you had renewed on time. If you do not pay by that date, we may exercise our
rights under the law. You may be required to pay reasonable costs authorized by
law. If you are late again in either returning the merchandise or renewing your
agreement, we may exercise our rights without sending you another notice like
this one. If you have questions, write or telephone the lessor promptly.'"
Certain consumer credit transactions
SECTION 14. Section 37-5-111 of the 1976 Code is amended to read:
"Section 37-5-111. (1) With respect to a secured or unsecured consumer
credit transaction payable in two or more installments, except as provided in
subsection (2), after a default consisting only of the consumer's failure to make
a required payment, a creditor, because of that default, may neither accelerate
maturity of the unpaid balance of the obligation, nor take possession of or
otherwise enforce a security interest in goods that are collateral until twenty
days after a notice of the consumer's right to cure (Section 37-5-110) is given.
Until expiration of the minimum applicable period after the notice is given, the
consumer may cure all defaults consisting of a failure to make the required
payment by tendering the amount of all unpaid sums due at the time of the tender,
without acceleration, plus any unpaid delinquency or deferral charges. Cure
restores the consumer to his rights under the agreement as though the defaults
had not occurred.
(2) With respect to defaults on the same obligation and subject to subsection
(1), after a creditor has once given notice of consumer's right to cure (Section
37-5-110), this section gives the consumer no right to cure and imposes no
limitation on the creditor's right to proceed against the consumer or goods that
are collateral or which are rented or the lessor's right to recover the property.
For the purpose of this section, in credit extended pursuant to a revolving
charge or revolving loan account, the obligation is the unpaid balance of the
account and there is no right to cure and no limitation on the creditor's rights
with respect to a default that occurs within twelve months after an earlier
default as to which a creditor has given a notice of consumer's right to cure
(Section 37-5-110).
(3) Notwithstanding subsection (1), with respect to consumer rental-purchase
agreements, with payments or options to renew which are monthly or less frequent
than monthly, after a default consisting of failure to renew and failure to
return the property, a lessor may not instigate court action to recover rented
property until five days after the notice of the consumer's right to cure
(Section 37-5-110) is given.
(4) Notwithstanding subsection (1), with respect to consumer rental-purchase
agreements with payments or options to renew more frequently than monthly, after
default consisting of failure to renew or return the property, a lessor may not
instigate court action to recover rented property until three days after notice
of the consumer's right to cure (Section 37-5-110) is given.
(5) With respect to all consumer rental-purchase agreements until expiration
of the minimum applicable period after notice is given, the consumer may cure all
defaults consisting of failure to renew and failure to return the property by
tendering the amount of all unpaid sums due at the same time of the tender plus
any unpaid delinquency charges or other charges authorized by Part 7 of Chapter
2.
(6) This section and the provisions on waiver, agreements to forego rights,
and settlement of claims (Section 37-1-107) do not prohibit a consumer from
voluntarily surrendering possession of goods which are collateral or which are
rented, and the creditor from thereafter accelerating maturity of the obligation
and enforcing the obligation and his security interest in the goods at any time
after default. In any enforcement proceeding, however, the creditor shall
affirmatively plead and prove either that the notice to cure is not required or
that the creditor has given the required notice, but the failure to so plead does
not invalidate any action taken by the creditor that is otherwise lawful and if
the creditor has rightfully repossessed any collateral the repossession does not
constitute conversion.
(7) Any repossession of collateral or rented property in violation of this
section is void and the creditor is liable for conversion."
Creditor may take possession of collateral
SECTION 15. Section 37-5-112 of the 1976 Code is amended to read:
"Section 37-5-112. Upon default by a consumer with respect to a consumer
credit transaction, unless the consumer voluntarily surrenders possession of the
collateral or rented property to the creditor, the creditor may take possession
of the collateral or rented property without judicial process only if possession
can be taken without entry into a dwelling used as a current residence and
without the use of force or other breach of the peace."
Cause of action
SECTION 16. Subsection (1) of Section 37-5-202 of the 1976 Code is amended to
read:
"(1) If a creditor has violated any provisions of this title applying to
receipts, statements of account, and evidences of payment (Sections 37-2-302 and
37-3-302), notice to cosigners and similar parties (Sections 37-2-302 and
37-3-303), schedule of maximum loan finance charges to be filed and posted
(Sections 37-2-305 and 37-3-305), certain negotiable instruments prohibited
(Section 37-2-403), assignee subject to claims and defenses (Sections 37-2-404(5)
and 37-2-708), security in sales or leases (Section 37-2-407), no assignment of
earnings (Sections 37-2-410, 37-3-403 and 37-2-710), referral sales and leases
(Section 37-2-411), attorney's fees (Sections 37-2-413 and 37-3-404), limitations
on default charges (Sections 37-2-414, 37-2-706, and 37-3-405), authorizations
to confess judgment (Sections 37-2-415, 37-2-713, and 37-3-407), consumer
rental-purchase disclosure (Section 37-2-703), consumer rental-purchase
reinstatement (Section 37-2-714), lender subject to claims and defenses arising
from sales and leases (Section 37-3-410(4)), card issuer subject to claims and
defenses (Section 37-3-411(5)), authority to make supervised loans (Section
37-3-502), restrictions on interest in land as security (Section 37-3-510),
limitations on the schedule of payments on loan terms for supervised loans
(Section 37-3-511), or assurance of discontinuance (Section 37-6-109), the
consumer has a cause of action to recover actual damages and also a right in an
action other than a class action, to recover from the person violating this title
a penalty in an amount determined by the court not less than one hundred dollars
nor more than one thousand dollars. With respect to violations arising from
sales or loans made pursuant to a revolving charge or a revolving loan account
no action pursuant to this subsection may be brought more than two years after
the violation occurred. With respect to violations arising from other consumer
credit transactions, no action pursuant to this subsection may be brought more
than one year after the scheduled or accelerated maturity of the debt."
Applicability of part
SECTION 17. Section 37-6-102 of the 1976 Code is amended to read:
"Section 37-6-102. This part applies to persons who in this State (1) make
or solicit consumer credit sales, consumer leases, consumer loans, and consumer
rental-purchase agreements; or (2) directly collect payments from or enforce
rights against debtors arising from sales, leases, loans, or agreements specified
in subsection (1), wherever they are made."
Applicability of part
SECTION 18. Section 37-6-201 of the 1976 Code is amended to read:
"Section 37-6-201. This part applies to a person engaged in this State in
making consumer credit sales, consumer leases, consumer loans, or consumer
rental-purchase agreements and to a person having an office or place of business
in this State who takes assignments of and undertakes direct collection of
payments from or enforcement of rights against debtors arising from these sales,
leases, or loans."
Notification requirements
SECTION 19. Chapter 6 of Title 37 of the 1976 Code is amended by adding:
"Section 37-6-204. In lieu of the notification requirements of Section
37-6-202, persons engaged in this State in making consumer rental-purchase
transactions shall:
(1) File notification with the Administrator within thirty days after
commencing business in this State, and, thereafter, on or before January
thirty-first of each year. The notification must state:
(a) Name of the person;
(b) Name in which business is transacted if different from (a);
(c) Address of principal office, which may be outside this State;
(d) An indication that the creditor engages in the business of making
consumer rental-purchase agreements;
(e) Address of all offices or stores, if any, in this State at which
consumer rental-purchase transactions are made, or in the case of a person taking
assignments of obligations, the offices or places of business within this State
at which business is transacted;
(f) An indication of which addresses listed in (c) and (e) above engage in
making consumer credit sales or cash sales of merchandise in addition to consumer
rental-purchase agreements.
(g) If consumer rental-purchase transactions are made otherwise than at an
office or retail store in this State, a brief description of the manner in which
they are made;
(h) Address of designated agent upon whom service of process may be made in
this State (Section 37-1-203); and
(2) If information in a notification becomes inaccurate after filing, no
further notification is required until the following January thirty-first."
Fee
SECTION 20. Section 37-6-203 of the 1976 Code is amended to read:
"Section 37-6-203. A person required to file notification shall on or
before January thirty-first of each year pay to the administrator a fee of fifty
dollars for each address in this State listed in the notification; provided, that
the fee for any one person must be not less than fifty dollars; a person who does
not extend credit pursuant to written contracts and a person whose annual gross
volume of business does not exceed one hundred fifty thousand dollars is exempt
from any fee and from the notification requirements of Section 37-6-202. Any
person engaged in making consumer credit sales or consumer leases who is also
engaged in making consumer rental-purchase agreements is only required to pay one
fifty dollar fee for each location."
Time effective
SECTION 21. This act shall take effect on January 1, 1986, with respect to
consumer rental-purchase agreements entered into on and after this date. |