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§ 6327. Refinancing

Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 12 Pa.C.S.A. Commerce and TradeEffective: December 1, 2014

Purdon's Pennsylvania Statutes and Consolidated Statutes
Title 12 Pa.C.S.A. Commerce and Trade (Refs & Annos)
Part V. Consumer Credit (Refs & Annos)
Chapter 63. Goods and Services Installment Sales (Refs & Annos)
Subchapter B. Closed-End Credit Agreements
Effective: December 1, 2014
12 Pa.C.S.A. § 6327
§ 6327. Refinancing
Currentness
(a) General rule.--Upon agreement in writing with the buyer, the holder of a closed-end credit agreement may refinance the payment of the unpaid time balance of the agreement by providing for a new schedule of installment payments.
(b) Charges.--
(1) The holder may contract for and collect the payment of a refinance charge by the buyer.
(2) A refinance charge shall be based on the amount refinanced and include the following:
(i) The additional cost of insurance and official fees incident to the refinancing.
(ii) The deduction of a refund credit in an amount equal to that to which the buyer would have been entitled under section 6313 (relating to prepayment of obligation) if the buyer had prepaid in full the obligations under the agreement.
(3) A refinance charge may not exceed the rate of finance charges under section 6345 (relating to finance charges).
(4) Subject to section 6342 (relating to insurance), an agreement may provide for payment of the additional cost of or premiums for continuing insurance coverage under the contract until the maturity of the contract.
(c) Contents of agreement.--The refinancing agreement shall set forth all of the following:
(1) The amount of the unpaid time balance to be refinanced.
(2) The amount of a refund credit.
(3) The amount to be refinanced after the deduction of the refund credit.
(4) The amount of the finance charge under the refinancing agreement.
(5) The additional cost of insurance and official fees to the buyer.
(6) The new unpaid time balance.
(7) The new schedule of installment payments.
(d) Consolidation of contracts.--If there is a consolidation of two or more agreements, the provisions of section 6329(a) and (b) (relating to add-on sales) apply.

Credits

2013, Nov. 27, P.L. 1081, No. 98, § 4, effective in one year [Dec. 1, 2014].
12 Pa.C.S.A. § 6327, PA ST 12 Pa.C.S.A. § 6327
Current through Act 10 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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