5. Delinquency Charges —
(1)With
respect to a consumer credit sale, refinancing, or consolidation, the
parties may contract for a delinquency charge of not more than the
following:
(a)Five dollars ($5) on any installment or minimum payment due
that is not paid in full not later than ten (10) days after its
scheduled due date, in the case of a consumer credit sale,
refinancing, or consolidation that is made before July 1, 2019. The
amount of five dollars ($5) in this subdivision is subject to change
under IC 24-4.5-1-106. In addition, the parties may provide by
contract for a delinquency charge that is subject to change. If the
parties provide by contract for a delinquency charge that is subject
to change, the seller shall disclose in the contract that the amount
of the delinquency charge
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5. Delinquency Charges — (1) With
respect to a consumer credit sale, refinancing, or consolidation, the
parties may contract for a delinquency charge of not more than the
following:
(a) Five dollars ($5) on any installment or minimum payment due
that is not paid in full not later than ten (10) days after its
scheduled due date, in the case of a consumer credit sale,
refinancing, or consolidation that is made before July 1, 2019. The
amount of five dollars ($5) in this subdivision is subject to change
under IC 24-4.5-1-106. In addition, the parties may provide by
contract for a delinquency charge that is subject to change. If the
parties provide by contract for a delinquency charge that is subject
to change, the seller shall disclose in the contract that the amount
of the delinquency charge is subject to change under IC 24-4.5-1-106 or this section.
(b) In the case of a consumer credit sale, refinancing, or
consolidation that is made after June 30, 2019, the following:
(i) Five dollars ($5) on any installment or minimum payment due
that is not paid in full not later than ten (10) days after its
scheduled due date, if installments under the consumer credit
sale, refinancing, or consolidation are due every fourteen (14)
days or less. The amount of five dollars ($5) in this clause is not
subject to change under IC 24-4.5-1-106.
(ii) Twenty-five dollars ($25) on any installment or minimum
payment due that is not paid in full not later than ten (10) days
after its scheduled due date, if installments under the consumer
credit sale, refinancing, or consolidation are due every fifteen
(15) days or more. The amount of twenty-five dollars ($25) in
this clause is not subject to change under IC 24-4.5-1-106.
(iii) Twenty-five dollars ($25) on any installment or minimum
payment due that is not paid in full not later than ten (10) days
after its scheduled due date, in the case of a consumer credit
sale, refinancing, or consolidation that is payable in a single
installment that is due at least thirty (30) days after the consumer
credit sale, refinancing, or consolidation is made. The amount of
twenty-five dollars ($25) in this clause is not subject to change
under IC 24-4.5-1-106.
(2) A delinquency charge under this section may be collected only
once on an installment however long it remains in default. A
delinquency charge on consumer credit sales made under a revolving
charge account may be applied each month that the payment is less
than the minimum required payment. A delinquency charge may be
collected any time after it accrues. No delinquency charge may be
collected if:
(a) the installment has been deferred and a deferral charge (IC 24-4.5-2-204) has been paid or incurred;
(b) a charge for a skip-a-payment service under IC 24-4.5-2-202(1)(f) has been paid or incurred, as provided in IC 24-4.5-2-202(1)(f)(iii); or
(c) a charge for an optional expedited payment service under IC 24-4.5-2-202(1)(g) has been paid or incurred, as provided in IC 24-4.5-2-202(1)(g)(v).
(3) A creditor may not, directly or indirectly, charge or collect a
delinquency charge on a payment that:
(a) is paid not later than ten (10) days after its scheduled due date;
and
(b) is otherwise a full payment of the payment due for the
applicable installment period;
if the only delinquency with respect to the consumer credit sale,
refinancing, or consolidation is attributable to a delinquency charge
assessed on an earlier installment.
(4) If two (2) or more installments, or parts of two (2) or more
installments, of a precomputed consumer credit sale are in default for
ten (10) days or more, the creditor may elect to convert the consumer
credit sale from a precomputed consumer credit sale to a consumer
credit sale in which the credit service charge is based on unpaid
balances. A creditor that makes this election shall make a rebate under
the provisions on rebates upon prepayment under IC 24-4.5-2-210 as
of the maturity date of the first delinquent installment, and thereafter
may make a credit service charge as authorized by the provisions on
credit service charges for consumer credit sales under IC 24-4.5-2-201.
The amount of the rebate shall not be reduced by the amount of any
permitted minimum charge under IC 24-4.5-2-210. Any deferral
charges made on installments due at or after the maturity date of the
first delinquent installment shall be rebated, and no further deferral
charges shall be made.