40-14-218. Credit service charge for revolving charge accounts.
(a) With respect to a consumer credit sale made pursuant to a revolving charge account, the parties to the sale may contract for the payment by the buyer of a credit service charge not exceeding that permitted in this section.
(b) A charge may be made in each billing cycle which is a percentage of an amount no greater than:
(i) The average daily balance of the account;
(ii) The unpaid balance of the account on the same day of the billing cycle; or
(iii) The median amount within a specified range within which the average daily balance of the account or the unpaid balance of the account on the same day of the billing cycle is included. A charge may be made pursuant to this paragraph only if the seller, subject to classifications and differentiations he may reasonably establish, makes the same charge on all balances within the specified range and if the percentage when applied to the median amount within the range does not produce a charge exceeding the charge resulting from applying that percentage to the lowest amount within the range by more than eight percent (8%) of the charge on the median amount.
(c) Except as provided in paragraph (ii) of this subsection:
(i) If the billing cycle is monthly, the charge may not exceed one and three-fourths percent (1.75%) of the amount pursuant to subsection (b) of this section; or
(ii) If the billing cycle is not monthly, the maximum charge is that percentage which bears the same relation to the applicable monthly percentage as the number of days in the billing cycle bears to thirty (30). For the purposes of this section, a variation of not more than four (4) days from month to month is "the same day of the billing cycle".
(d) Notwithstanding subsection (c) of this section, if there is an unpaid balance on the date as of which the credit service charge is applied, the seller may contract for and receive a charge in accordance with this subsection. For accounts with a billing cycle of thirty (30) days or more, the seller may receive a charge not exceeding three dollars ($3.00). For accounts with a billing cycle of less than thirty (30) days, the seller may receive a charge not to exceed the pro rata part of three dollars ($3.00) that bears the same relation to three dollars ($3.00) as the number of days in the billing cycle bears to thirty (30).