§ 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).