Maine Revised Statutes Title 9-A Sec. 2-508 – Conversion to open end credit
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Terms Used In Maine Revised Statutes Title 9-A Sec. 2-508
- 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
- Open-end 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 revolving credit.) Source: OCC
The parties may agree to add the unpaid balance of a consumer credit transaction not made pursuant to open-end credit to the consumer’s open-end credit account with the creditor. The unpaid balance so added is an amount equal to the amount financed determined according to the provisions on finance charge on refinancing, section 2?504. This section does not apply to consumer leases. [PL 1973, c. 762, §1 (NEW).]
SECTION HISTORY
PL 1973, c. 762, §1 (NEW).