TITLE 6

Commerce and Trade

SUBTITLE II

Other Laws Relating to Commerce and Trade

CHAPTER 43. RETAIL INSTALLMENT SALES

Subchapter II. Provisions of Retail Installment Contracts


A retail installment contract shall be dated and in writing; the printed portion thereof shall be in at least 8-point type.

6 Del. C. 1953, § 4303; 52 Del. Laws, c. 342.;

Every retail installment contract shall contain:

(1) The entire agreement of the parties with respect to the cost and terms of payment for the goods and services, which terms of payment must coincide with those stated in any promissory notes or any other evidences of indebtedness between the parties relating to the transaction;

(2) Either at the top of the contract or directly above the space reserved for the signature of the buyer, the words "conditional sale contract'' or "lien contract,'' as the case may be, shall appear in at least 10-point bold type where a security interest in the goods is retained or a lien on other goods or realty is obtained by the seller as security for the goods or services purchased. Either at the top of the contract or directly above the space reserved for the signature of the buyer, the words "retail installment contract'' shall appear in at least 10-point bold type where security is not obtained by the seller for the goods or services purchased;

(3) A notice in at least 8-point bold type reading as follows:

"Notice to the buyer: (1) Do not sign this agreement before you read it or if it contains any blank space. (2) You are entitled to a completely filled-in copy of this agreement. (3) Under the law, you have the right to pay off in advance the full amount due and under certain conditions to obtain a partial refund of the service charge.''

6 Del. C. 1953, § 4304; 52 Del. Laws, c. 342.;

(a) Except as provided in §§ 4327-4332 of this title, a contract shall contain the following:

(1) The names of the seller and the buyer, the place of business of the seller, the residence or place of business of the buyer as specified by the buyer and a description of the goods or services sufficient to identify them. Services or multiple items of goods may be described in general terms and may be described in detail sufficient to identify them in a separate writing.

(2) The cash sale price of the goods, services and accessories which are the subject matter of the retail installment sale.

(3) The amount of the buyer's down payment, itemizing the amounts paid in money and in goods and containing a brief description of the goods, if any, traded in.

(4) The difference between paragraphs (a)(1) and (2) of this section.

(5) The amount, if any, included for insurance, specifying the coverages and the cost of each type of coverage.

(6) The amount, if any, of official fees.

(7) The unpaid balance, which is the sum of paragraphs (a)(4), (5), and (6) of this section.

(8) The amount of the service charge, if any.

(9) The time balance, which is the sum of paragraphs (a)(7) and (8) of this section, payable by the buyer to the seller, the number of installments required, the amount of each installment expressed in dollars and the due date or period thereof.

(10) The time sale price.

(b) The items need not be stated in the sequence or order set forth above; additional items may be included to explain the computations made in determining the amount to be paid by the buyer.

6 Del. C. 1953, § 4305; 52 Del. Laws, c. 342.;

The seller shall not obtain the signature of the buyer to a contract when it contains blank spaces to be filled in after it has been signed.

6 Del. C. 1953, § 4306; 52 Del. Laws, c. 342.;

If the cost of any insurance is included in the contract and a separate charge is made to the buyer for such insurance:

(1) The contract shall state whether the insurance is to be procured by the buyer or the seller;

(2) The amount included for the insurance shall not exceed the premiums chargeable in accordance with the rate fixed for such insurance by the insurer;

(3) If the insurance is to be procured by the seller or holder, the seller or holder shall, within 45 days after delivery of the goods or furnishing of the services under the contract, deliver, mail or cause to be mailed to the buyer, at the seller's or holder's address as specified in the contract, a notice thereof or a copy of the policy or policies of insurance or a certificate or certificates of the insurance so procured.

6 Del. C. 1953, § 4307; 52 Del. Laws, c. 342; 70 Del. Laws, c. 186, § 1.;

A contract may provide for the payment by the buyer of a delinquency charge on each installment in default for a period of not less than 10 days in an amount not in excess of 5 percent of such installment or $5.00, whichever is less, but a minimum charge of $1.00 may be made. Only 1 such delinquency charge may be collected on any such installment regardless of the period during which it remains in default. The contract may also provide for payment of any actual and reasonable costs of collection occasioned by removal of the goods from the State without written permission of the holder, or by the failure of the buyer to notify the holder of any change of residence, or by the failure of the buyer to communicate with the holder for a period of 45 days after any default in making payments due under the contract.

6 Del. C. 1953, § 4308; 52 Del. Laws, c. 342.;

The seller shall deliver or mail to the buyer, at the address shown on the contract, a legible copy thereof completed, in accordance with the provisions of this chapter. Until the seller does so, the buyer shall be obligated to pay only the cash sale price. Any acknowledgment by the buyer of delivery of a copy of the contract shall be printed or written in a size equal to at least 10-point bold type and, if contained in the contract shall also appear directly above the space reserved for the buyer's signature. The buyer's written acknowledgement, conforming to the requirements of this section of delivery of a copy of a contract, shall be a conclusive presumption of such delivery and of compliance with this section and § 4306 of this title, in any action or proceeding by or against an assignee of the contract without knowledge to the contrary when the assignee purchases the contract.

6 Del. C. 1953, § 4309; 52 Del. Laws, c. 342; 70 Del. Laws, c. 186, § 1.;