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§ 6246. Refund for prepayment of contract

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 62. Motor Vehicle Sales Finance (Refs & Annos)
Subchapter D. Costs and Charges
Effective: December 1, 2014
12 Pa.C.S.A. § 6246
§ 6246. Refund for prepayment of contract
Currentness
(a) Right to prepay unpaid time balance.--Notwithstanding the provisions of an installment sale contract, a buyer may prepay at any time all or part of the unpaid time balance under the contract.
(b) Rebate generally.--If the entire time balance is liquidated prior to maturity by prepayment, refinancing or termination by surrender or repossession and resale of the motor vehicle, a holder of the contract for the sale of the motor vehicle shall immediately rebate to the buyer any unearned portion of the finance charge. The rebate may be made in cash or credited to the amount due on the obligation of the buyer.
(c) Rebate amount.--
(1) Subject to paragraph (2), the proportion of the unearned finance charge that shall be rebated to the buyer to the total finance charge shall be at least the proportion of the sum of the periodic time balances after the date of prepayment to the sum of all the periodic time balances under the schedule of payments in the original contract.
(2) The holder is not required to rebate:
(i) a portion of the unearned finance charge that results in a net minimum finance charge on the contract of less than $10; or
(ii) an unearned finance charge if the computed amount due is less than $1.

Credits

2013, Nov. 27, P.L. 1081, No. 98, § 4, effective in one year [Dec. 1, 2014].
12 Pa.C.S.A. § 6246, PA ST 12 Pa.C.S.A. § 6246
Current through Act 11 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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