Section 54-3A-5 - Additional charges allowed--Disclosure and explanation to consumer--Separateagreement.
54-3A-5. Additional charges allowed--Disclosure and explanation to consumer--Separate agreement. In addition to the finance charge, a creditor may contract for, and receive the following additional charges in connection with an installment sales contract if such charges are itemized and disclosed to the buyer:
(1) Official fees and taxes;
(2) Charges for guaranteed asset protection waivers, or credit life, accident, health, loss of income, property, or liability insurance. However any insurance is optional, and the consumer shall be informed, in writing, that any insurance is optional; and
(3) Charges for debt cancellation contracts and debt suspension contracts, as defined in § 51A-1-2, if the debt cancellation contract or debt suspension contract is a contract of a depository institution authorized to provide such coverage, and the contract is sold directly by the authorized depository institution or by a retailer acting as an agent for the authorized depository institution. However, any debt cancellation contract or debt suspension contract is optional, and the consumer shall be informed, in writing, that any such contract is optional.
Any such charges must be disclosed and explained to the consumer prior to signing any agreement to repay a consumer credit obligation. Any such charges must be separately agreed to in writing and separately signed by the consumer.
Source: SL 1974, ch 305, § 5; SL 2005, ch 256, § 1; SL 2006, ch 244, § 1.