§ 24-4.5-2-206 — Credit service charge on consolidation

Credit Service Charge on Consolidation
— If a buyer owes an unpaid balance to a seller with respect to a
consumer credit sale, refinancing, or consolidation, and becomes
obligated on another consumer credit sale, refinancing, or consolidation
with the same seller, the parties may agree to a consolidation resulting
in a single schedule of payments pursuant to either of the following
subsections:
(1) The parties may agree to refinance the unpaid balance with
respect to the previous sale pursuant to the provisions on refinancing
(24-4.5-2-205) and to consolidate the amount financed resulting from
the refinancing by adding it to the amount financed with respect to the
subsequent sale. The seller may contract for and receive a credit
service charge based on the aggregate amount financed resulting from
the consolidation at a rate not exceeding that permitted by the
provisions on credit service charge for consumer credit sales
(24-4.5-2-201).
(2) The parties may agree to consolidate by adding together the
unpaid balances with respect to the two sales.
Formerly: Acts 1971, P.L.366, SEC.3.