TITLE 6

Commerce and Trade

SUBTITLE II

Other Laws Relating to Commerce and Trade

CHAPTER 43. RETAIL INSTALLMENT SALES

Subchapter IX. Retail Installment Accounts


A retail installment account may be established by the seller upon the request of a buyer or prospective buyer. The statement that "service charges not in excess of those permitted by law will be charged on the outstanding balances from month to month'' shall be printed in type no smaller than 8 points in every application form used by the seller and shall be stated to the applicant when such installment accounts are negotiated by telephone.

6 Del. C. 1953, § 4334; 52 Del. Laws, c. 342.;

(a) At the time a seller accepts the credit of the buyer and establishes a retail installment account for that buyer's use, the seller shall confirm this fact to the buyer in writing. Such confirmation shall contain a clear and understandable statement of the rates of service charge, without regard to the variations contained in § 4337 of this title, which will be collected from the buyer, but may contain the clause that such rates are subject to change if permitted by law. This confirmation shall also contain a legend that the buyer may at any time pay the entire balance.

(b) The confirmation shall be in type no smaller than elite typewriter characters.

(c) If no copy of the confirmation is retained by the seller, a notation in the permanent record showing that such confirmation was mailed, and the date of mailing, shall serve as prima facie evidence of such mailing.

6 Del. C. 1953, § 4335; 52 Del. Laws, c. 342; 70 Del. Laws, c. 186, § 1.;

Each retail seller, before the retail seller can benefit from the service charges permitted by this subchapter, shall display prominently in the retail seller's main place of business and in each branch thereof, a statement outlining the service charge rates which will conform to § 4337 of this title.

6 Del. C. 1953, § 4336; 52 Del. Laws, c. 342; 70 Del. Laws, c. 186, § 1.;

Subject to the other provisions of this subchapter a retail seller or the holder of a retail installment account may charge and collect a service charge computed on the outstanding unpaid indebtedness in a buyer's retail installment account and may calculate such service charge in the manner and at such daily, weekly, monthly, annual or other periodic percentage rate or rates as the agreement governing retail installment account provides; provided, however, that if the service charge as so computed is less than $1.00 for any month, the holder may charge $1.00 as a service charge for such month. If the applicable periodic percentage rate under the agreement governing a retail installment account is other than daily, the service charge may be calculated on an amount not in excess of the average of outstanding unpaid indebtedness for the applicable billing period, determined by dividing the total of the amounts of outstanding unpaid indebtedness for each day in the applicable billing period by the number of days in the billing period. If the applicable periodic percentage rate under the agreement governing the retail installment account is monthly, a billing period shall be deemed to be a month or monthly if the last day of each billing period is on the same day of each month or does not vary by more than 4 days therefrom.

6 Del. C. 1953, § 4337; 52 Del. Laws, c. 342; 62 Del. Laws, c. 228, §§ 10, 11; 63 Del. Laws, c. 2, § 19.;

(a) The seller or holder of a retail installment account shall promptly provide the buyer with a statement as of the end of each monthly period (which need not be a calendar month) setting forth the following:

(1) The balance due to the seller or holder from the buyer at the beginning of the monthly period;

(2) The dollar amount of each purchase by the buyer during the monthly period and (unless a sales slip or memorandum of each purchase has previously been furnished the buyer or is attached to the statement), the purchase or posting date, a brief description and the cash price of each purchase;

(3) The payments made by the buyer to the seller or holder and any other credits to the buyer during the monthly period;

(4) The amount of the service charge;

(5) The total balance in the account at the end of the monthly period;

(6) A legend to the effect that the buyer may at any time pay the total balance.

(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, § 4338; 52 Del. Laws, c. 342; 70 Del. Laws, c. 186, § 1.;

The service charge shall include all charges incident to investigating and making the retail installment account. No fee, expense, delinquency, collection or other charge whatsoever shall be taken, received, reserved or contracted by the seller or holder of a retail installment account except as provided in this section. A seller may, however, in an agreement which is signed by the buyer and of which a copy is given or furnished to the buyer provide for the payment of attorney's fees and costs in conformity with § 4345 of this title.

6 Del. C. 1953, § 4339; 52 Del. Laws, c. 342.;

If the cost of any insurance is to be separately charged to the buyer, there shall be an agreement to that effect, signed by both the buyer and the seller, a copy of which shall be given or furnished to the buyer. Such agreement shall state whether the insurance is to be procured by the buyer or the seller or holder. If the insurance is to be procured by the seller or holder, the seller or holder shall comply with the provisions of § 4307 of this title.

6 Del. C. 1953, § 4340; 52 Del. Laws, c. 342.;

Nothing in this subchapter prohibits the execution of an agreement between a buyer and seller whereby the seller retains a security interest in goods sold to the buyer until full payment therefor has been made. Section 4328 of this title shall apply to goods sold under such an agreement.

6 Del. C. 1953, § 4341; 52 Del. Laws, c. 342.;

No retail installment account shall require or entail the execution of any note or series of notes by the buyer which, when separately negotiated, will cut off as to third parties, any right of action or defense which the buyer may have against the seller.

6 Del. C. 1953, § 4342; 52 Del. Laws, c. 342.;

The provisions of §§ 4320 and 4323 of this title shall apply to retail installment accounts.

6 Del. C. 1953, § 4343; 52 Del. Laws, c. 342.;