Maryland Code, Commercial Law § 12-610.1
Current as of December 31, 2021 | Updated by FindLaw Staff
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Any agreement made before July 1, 1982, which is refinanced at a higher rate allowed by § 12-609(f) or § 12-610(3) of this subtitle must comply with the following requirements:
(1) The holder must give the following disclosures in writing to the buyer prior to the execution by the buyer of the new agreement:
If you do agree to consolidate your existing obligation, you will be paying an annual percentage rate of . . . .% on the existing net balance of $. . . . . ., instead of the rate of . . . . .% which you are now paying.
Schedule of Monthly Payments|
Separate Purchase Agreements |
Consolidated Purchase Agreement |
|
$․․․․ per month for |
$․․․․ per month for |
|
the next ․․․․ months |
the next ․․․․ months |
|
then |
|
|
$․․․․ per month for |
|
|
․․․․ months after that |
|
Separate Agreements |
Consolidated Agreement |
|
$․․․․ total of |
$․․․․ total of payments |
|
payments for your |
for your consolidated |
|
existing purchases |
purchases |
|
․․․․ total of payments |
|
|
for your new purchases |
(2) The holder must allow the buyer the choice of repaying his existing purchase balance at the originally agreed upon rate and obtaining any additional extension of credit as a separate agreement, notwithstanding any law which limits the holder's ability to have more than 1 agreement with the same buyer;
(3) An existing balance may be refinanced only upon the buyer's request;
(4) The holder must refund or credit to the buyer's account any unearned finance charge and any returned insurance premiums upon the cancellation of insurance sold in connection with the purchases;
(5) The holder must allow the buyer the right to cancel the consolidated purchase agreement within 3 business days and to elect the separate account option pursuant to subsection (2). The holder shall provide to the buyer conspicuous notice of the provisions of this subsection; and
(6) Nothing in this subsection shall prohibit the receipt of goods or services by the buyer at the time the consolidated purchase agreement is made.
Cite this article: FindLaw.com - Maryland Code, Commercial Law § 12-610.1 - last updated December 31, 2021 | https://codes.findlaw.com/md/commercial-law/md-code-coml-sect-12-610-1/
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