GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION LAW 2023-60
SENATE BILL 329
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 except that a minimum finance charge of five dollars ($5.00) may be 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)(2) Eighteen
percent (18%) Twenty‑one percent (21%) 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:
Eighteen percent (18%)
per annum for vehicles one and two model years old. (2) Twenty percent (20%) per annum for vehicles one
to three model years old. (3)(2) Twenty‑two
percent (22%) Twenty‑six percent (26%) per annum for vehicles
four to five model years old. (4)(3) Twenty‑nine
percent (29%) Thirty percent (30%) per annum for vehicles five six
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.
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
dollars ($15.00). eighteen dollars ($18.00). 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
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
would not have been in default except for the previous default.
(d) A default charge for any
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.
In the General Assembly read three times and ratified this the 8th day of June, 2023.
s/ Phil Berger
President Pro Tempore of the Senate
s/ Tim Moore
Speaker of the House of Representatives
VETO Roy Cooper
Became law notwithstanding the objections of the Governor at 1:44 p.m. this 27th day of June, 2023.
s/ Mr. James White
House Principal Clerk