§ 40-14-221 — Rebate upon prepayment

(a) Except as provided in subsection (b) of this section,
upon prepayment in full of the unpaid balance of a precomputed
consumer credit sale, refinancing or consolidation, the unearned
credit service charge shall be refunded based upon the Rule of
78's if the transaction under its original terms did not exceed
sixty-one (61) monthly installments and upon the actuarial
method, if the transaction by its original terms exceeded
sixty-one (61) monthly installments. An amount not less than the
unearned portion of the credit service charge calculated
according to this section shall be rebated to the debtor. With
respect to irregular payment transactions, the administrator may
prescribe by rule the refund formula. If the rebate otherwise
required is less than one dollar ($1.00), no rebate need be
made.
(b) Upon prepayment in full of a consumer credit sale,
refinancing, or consolidation, other than one (1) pursuant to a
revolving charge account, if the credit service charge then
earned is less than any permitted minimum credit service charge
(W.S. 40-14-212(f)) contracted for, whether or not the sale,
refinancing, or consolidation is precomputed, the seller may
collect or retain the minimum charge, as if earned, not
exceeding the credit service charge contracted for.
(c) If a deferral (W.S. 40-14-215) has been agreed to, the
unearned portion of the credit service charge shall be computed
without regard to the deferral. The amount of deferral charge
earned at the date of prepayment shall also be calculated. If
the deferral charge earned is less than the deferral charge
paid, the difference shall be added to the unearned portion of
the credit service charge. If any part of a deferral charge has
been earned but has not been paid, that part shall be subtracted
from the unearned portion of the credit service charge or shall
be added to the unpaid balance.
(d) This section does not preclude the collection or
retention by the seller of delinquency charges (W.S. 40-14-214).
(e) If the maturity is accelerated for any reason and
judgment is obtained, the buyer is entitled to the same rebate
as if payment had been made on the date judgment is entered.
(f) Upon prepayment in full of a consumer credit sale by
the proceeds of consumer credit insurance (W.S. 40-14-403), the
buyer or his estate is entitled to the same rebate as though the
buyer had prepaid the agreement on the date the proceeds of the
insurance are paid to the seller, but no later than ten (10)
business days after satisfactory proof of loss is furnished to
the seller.
Part 3. Disclosure and Advertising