S.B. 75

1

CONSUMER CREDIT CONTRACTS
2 2004 GENERAL SESSION
3 STATE OF UTAH
4 Sponsor: Gregory S. Bell
5
6 LONG TITLE
7 General Description:
8 This bill modifies the Utah Consumer Credit Code to enact provisions relating to
9 finance charges on open-ended consumer credit accounts.
10 Highlighted Provisions:
11 This bill:
12 . prohibits a creditor located in Utah from imposing a retroactive finance charge on
13 an open-end consumer credit account for a billing period during which the creditor
14 originally did not impose a finance charge; and
15 . makes technical changes.
16 Monies Appropriated in this Bill:
17 None
18 Other Special Clauses:
19 None
20 Utah Code Sections Affected:
21 AMENDS:
22 70C-4-103, as enacted by Chapter 159, Laws of Utah 1985
23
24 Be it enacted by the Legislature of the state of Utah:
25 Section 1. Section 70C-4-103 is amended to read:
26 70C-4-103. Finance charge for open-end accounts.
27 (1) With respect to an open-end consumer credit contract[,]:

28 (a) a finance charge may only be calculated during any particular billing cycle on the
29 basis of either:
30 [(1)] (i) the average or actual daily balance of the account; or
31 [(2)] (ii) the unpaid balance of the account on the last day of the billing cycle after
32 deducting payments and credits received during the same cycle[.]; and
33 (b) a creditor may not apply a finance charge:
34 (i) based on the balance of the account during a previous billing cycle; and
35 (ii) in an amount greater than the finance charge the creditor applied to the account at
36 the conclusion of the billing cycle described in Subsection (1)(b)(i).
37 (2) This section does not prevent a creditor from applying a finance charge because of
38 a debtor's failure to make a regular minimum payment, as defined by the creditor, for any
39 billing cycle.




Legislative Review Note
as of 8-25-03 2:24 PM

A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel