Requirements for Revolving Accounts; Limitations on Time Price Differential

1. Law
2. Georgia Code
3. Commerce and Trade
4. Selling and Other Trade Practices
5. Retail Installment and Home Solicitation Sales
6. Requirements for Revolving Accounts; Limitations on Time Price Differential

1. Every revolving account shall be in writing and shall be completed prior to the signing thereof by the retail buyer. The printed portion, other than instructions for completion, of any revolving account shall be in at least six-point type. Any such account shall contain the names of the seller and the buyer, the place of business of the seller, and the residence or place of business of the buyer as specified by the buyer, and substantially the following notice in clear and conspicuous type:

   A copy of any such account shall be delivered or mailed to the retail buyer by the retail seller prior to the date on which the first payment is due thereunder. Any acknowledgment by the buyer of delivery of a copy of the account shall be in clear and conspicuous type and, if contained in the account, shall appear directly above the buyer's signature. No account shall be signed by the buyer when it contains blank spaces to be filled in after it has been signed. The buyer's acknowledgment, conforming to the requirements of this subsection, of delivery of a copy of an account shall be presumptive proof in any action or proceeding of such delivery and that the account, when signed, did not contain any blank spaces as provided in this subsection. A revolving account shall be presumed to be signed or accepted by the buyer if, after a request for a revolving account, such revolving account or application for a revolving account is in fact signed by the buyer or if such revolving account is used by the buyer or if such revolving account is used by another person authorized by the buyer to use it. The revolving account is not effective until: the buyer has received the disclosures required pursuant to the federal Truth in Lending Act, 15 U.S.C. Section 1601, et seq., as amended; the buyer or a person authorized by the buyer uses the revolving account; and the seller or its assignee extends credit to the buyer for transactions on the revolving account.

2. Notwithstanding any other law, the seller under a revolving account may charge, receive, and collect a time price differential which shall not exceed 17.5› per $10.00 per month computed on all amounts unpaid thereunder from month to month (which need not be a calendar month) or other regular period. If the amount of time price differential so computed shall be less than $1.00 for any such month, a time price differential of $1.00 for any such month may be charged, received, and collected. If the regular period is other than such monthly period or if the unpaid amount is less than or greater than $10.00, the permitted time price differential shall be computed proportionately. Such time price differential may be computed for all unpaid balances within a range of not in excess of $10.00 on the basis of the median amount within such range if as so computed such time price differential is applied to all unpaid balances within such range.

- For article commenting on the 1997 amendment of this Code section, see 14 Ga. St. U.L. Rev. 38 (1997).

JUDICIAL DECISIONS

Rate of interest on judgments.

- Although former Code 1933, § 57-101 et seq. was inapplicable to revolving accounts, former Code 1933, § 57-108 did apply to the interest rates chargeable on judgments for actions on such accounts. Farmers Mut. Exch. of Wrens, Inc. v. Rabun, 145 Ga. App. 798, 245 S.E.2d 52 (1978).

Security interest.

- A security interest can be created in a credit transaction pursuant to a revolving account. Brown v. Jenkins, 135 Ga. App. 694, 218 S.E.2d 690 (1975).

Cited in Martin v. Glenn's Furn. Co., 126 Ga. App. 692, 191 S.E.2d 567 (1972); Harrison v. Goodyear Serv. Stores, 137 Ga. App. 223, 223 S.E.2d 261 (1976).

RESEARCH REFERENCES

C.J.S.

- 77A C.J.S., Sales, § 368 et seq.

ALR.

- Law of sales and liability in respect thereof as applied to transactions in self-service stores, 163 A.L.R. 238.

Validity and construction of revolving charge account contract or plan, 41 A.L.R.3d 682.

Reformation of usurious contract, 74 A.L.R.3d 1239.

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