5. Delinquency Charges —
(1)With
respect to a consumer loan, 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 loan, 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 lender shall disclose in the contract that the amount
of the delinquency charge is subject to
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5. Delinquency Charges — (1) With
respect to a consumer loan, 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 loan, 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 lender 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 loan, 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 loan,
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
loan, 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 loan,
refinancing, or consolidation that is payable in a single
installment that is due at least thirty (30) days after the
consumer loan, 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. With regard
to a delinquency charge on consumer loans made under a revolving
loan account, the delinquency charge may be applied each month that
the payment is less than the minimum required payment on the
account. A delinquency charge may be collected any time after it
accrues. A delinquency charge may not be collected if:
(a) the installment has been deferred and a deferral charge (IC 24-4.5-3-204) has been paid or incurred;
(b) a charge for a skip-a-payment service under IC 24-4.5-3-202(1)(i) has been paid or incurred, as provided in IC 24-4.5-3-202(1)(i)(iii); or
(c) a charge for an optional expedited payment service under IC 24-4.5-3-202(1)(j) has been paid or incurred, as provided in IC 24-4.5-3-202(1)(j)(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 loan, 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 loan are in default for ten (10) days or
more, the lender may elect to convert the loan from a precomputed loan
to a loan in which the finance charge is based on unpaid balances. A
lender that makes this election shall make a rebate under the provisions
on rebates upon prepayment (IC 24-4.5-3-210) as of the maturity date
of the first delinquent installment, and thereafter may make a loan
finance charge as authorized by the provisions on loan finance charges
for consumer loans (IC 24-4.5-3-201) or supervised loans (IC 24-4.5-3-508). The amount of the rebate shall not be reduced by the
amount of any permitted minimum charge (IC 24-4.5-3-210). 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.