Sec. 205. Credit Service Charge on Refinancing — With respect to a consumer credit sale, refinancing, or consolidation, the seller may by agreement with the buyer refinance the unpaid balance and may contract for and receive a credit service charge based on the amount financed resulting from the refinancing at a rate not exceeding that permitted by the provisions on credit service charge for consumer credit sales ( IC 24-4.5-2-201 ). For the purpose of determining the credit service charge permitted, the amount financed resulting from the refinancing comprises the following: (a) If: (i) the transaction was not precomputed, the total of the unpaid balance and accrued charges on the date of refinancing; or (ii) the transaction was precomputed, in the case of a transaction entered into before July 1, 2020, the amount which the buyer would have been required to pay upon prepayment pursuant to the provisions on rebate upon prepayment ( IC 24-4.5-2-210 ) on the date of refinancing. (b) Appropriate additional charges ( IC 24-4.5-2-202 ), payment of which is deferred. Formerly: Acts 1971, P.L.366, SEC.3. As amended by P.L.14-1992, SEC.17; P.L.85-2020, SEC.4.
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