§ 25A-29. Default charges. - North Carolina Statutes

§25A‑29.  Default charges.

If any installment is past duefor 10 days or more according to the original terms of the consumer creditinstallment sale contract, a default charge may be made in an amount not toexceed five percent (5%) of the installment past due or six dollars ($6.00),whichever is the lesser. A default charge may be imposed only one time for eachdefault.

If a default charge isdeducted from a payment made on the contract and such deduction results in asubsequent default on a subsequent payment, no default charge may be imposedfor such default.

If a default charge has beenonce imposed with respect to a particular default in payment, no default chargeshall be imposed with respect to any future payments which would not have beenin default except for the previous default.

A default charge for anyparticular default shall be deemed to have been waived by the seller unless,within 45 days following the default, (i) the charge is collected or (ii)written notice of the charge is sent to the buyer. (1971, c. 796, s. 1.)