537.2505 - FINANCE CHARGE ON CONSOLIDATION.

        537.2505  FINANCE CHARGE ON CONSOLIDATION.         1.  In this section, "consumer credit transaction" does not      include a consumer lease or a consumer rental purchase agreement.         2.  If a consumer owes an unpaid balance to a creditor with      respect to a consumer credit transaction and becomes obligated on      another consumer credit transaction with the same creditor, the      parties may agree to a consolidation resulting in a single schedule      of payments.  If the previous consumer credit transaction was not      precomputed, the parties may agree to add the unpaid amount of the      amount financed and accrued charges including finance charges on the      date of consolidation to the amount financed with respect to the      subsequent consumer credit transaction.  If the previous consumer      credit transaction was precomputed, the parties may agree to      refinance the unpaid balance pursuant to section 537.2504, and to      consolidate the amount financed resulting from the refinancing by      adding it to the amount financed with respect to the subsequent      consumer credit transaction.  In either case the creditor may      contract for and receive a finance charge as provided in subsection      3, based on the aggregate amount financed resulting from the      consolidation.         3.  If all debts consolidated arise exclusively from consumer      loans, the creditor may contract for and receive the finance charge      permitted by the provisions on finance charge for consumer loans      pursuant to section 537.2401.  If the debts consolidated include a      debt arising from a consumer credit sale, including a transaction      pursuant to a lender credit card, the amount of the finance charge is      governed by the provisions on finance charge for consumer credit      sales in section 537.2201.         4.  If a consumer owes an unpaid balance to a creditor with      respect to a consumer credit transaction arising out of a consumer      credit sale, and becomes obligated on another consumer credit      transaction arising out of another consumer credit sale by the same      seller, the parties may agree to a consolidation resulting in a      single schedule of payments either pursuant to subsection 2 or by      adding together the unpaid balances with respect to the two sales.      
         Section History: Early Form
         [C75, 77, 79, 81, § 537.2505] 
         Section History: Recent Form
         87 Acts, ch 80, §36         Referred to in § 537.3302