Kentucky Statutes 286.3-740 – Finance charges — Rate
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Notwithstanding the provisions of any other law, a bank may receive or contract to receive and collect a finance charge pursuant to a revolving credit plan in an amount not in excess of one and three-fourths percent (1.75%) per month of either the average daily unpaid balance of the debtor’s account under such plan during the billing cycle, or of the unpaid balance of such account on the same day of each billing cycle. If the billing cycle is other than monthly, the maximum finance charge for such billing cycle shall be the percentage which bears the same relation to one and three-fourths percent (1.75%) as the number of days in the billing cycle bears to thirty (30). A variation of not more than four (4) days from billing cycle to billing cycle shall be deemed “the same day of each billing cycle.”
Effective: July 13, 1984
Formerly codified as KRS § 287.740.
History: Amended 1984 Ky. Acts ch. 349, sec. 3, effective July 13, 1984. — Created
1972 Ky. Acts ch. 207, sec. 4.
Legislative Research Commission Note (7/12/2006). In accordance with 2006 Ky. Acts ch. 247, secs. 38 and 39, this statute has been renumbered as a section of the Kentucky Financial Services Code, KRS Chapter 286.
Effective: July 13, 1984
Terms Used In Kentucky Statutes 286.3-740
- Contract: A legal written agreement that becomes binding when signed.
- Finance charge: The total cost of credit a customer must pay on a consumer loan, including interest. The Truth in Lending Act requires disclosure of the finance charge. Source: OCC
- Month: means calendar month. See Kentucky Statutes 446.010
- Revolving credit: A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or open-end credit.) Source: OCC
- Statute: A law passed by a legislature.
Formerly codified as KRS § 287.740.
History: Amended 1984 Ky. Acts ch. 349, sec. 3, effective July 13, 1984. — Created
1972 Ky. Acts ch. 207, sec. 4.
Legislative Research Commission Note (7/12/2006). In accordance with 2006 Ky. Acts ch. 247, secs. 38 and 39, this statute has been renumbered as a section of the Kentucky Financial Services Code, KRS Chapter 286.