Tennessee § 47-11-104 - Retail charge agreements.

§ 47-11-104. Retail charge agreements.

Form and Contents; Delivery to Buyer. Every retail charge agreement shall be in writing and shall be signed by the retail buyer. A retail charge agreement shall be deemed to be signed or accepted by the retail buyer if, after a request for a retail charge account, such agreement or application for a retail charge account is in fact signed by the retail buyer, or if that retail charge account is used by the retail buyer or another person authorized by the retail buyer to use the account. The agreement shall provide that it shall not become effective unless and until the seller or assignee has provided the disclosures required pursuant to the federal Truth-in-Lending Act, compiled in 15 U.S.C. § 1601 et seq., the retail buyer or a person authorized by the retail buyer uses the retail charge account, and the seller or assignee extends credit to the retail buyer for that transaction on the retail charge account. A copy of any such agreement executed on or after March 15, 1961, shall at the request of the buyer be delivered or mailed to the retail buyer by the retail seller prior to the date on which the first payment is due under the agreement. An acknowledgment of the delivery thereof contained in the body of the agreement shall be presumptive proof of delivery in any action. All agreements executed on or after March 15, 1961, shall state the amount of, or the method of calculating, the time price differential to be charged and paid pursuant thereto or shall state that a time price differential not in excess of that permitted by this chapter will be charged and paid accordingly. Monthly Statements; Payment in Full Privilege. The retail seller under a retail charge agreement shall promptly supply the retail buyer under such agreement with a statement as of the end of each monthly period (which need not be a calendar month) or other regular period agreed upon by the retail seller and the retail buyer, in which there is any unpaid balance thereunder, which shall recite the following: The unpaid balance under the retail charge agreement at the beginning and end of the period; Unless otherwise furnished by the retail seller to the retail buyer by sales slip, memorandum, or otherwise, an identification of the goods or services purchased during the period, the cash price, and the date of each purchase; The payments made by the retail buyer to the retail seller and any other credits to the retail buyer during the period; The amount of the time price differential, if any; and A legend to the effect that the retail buyer may at any time pay the total balance, if such legend is not stated in the original contract signed by the buyer. The subdivisions need not be stated in the sequence or order set forth above, and additional items may be included to explain the computations made in determining the amount to be paid by the retail buyer. Time Price Differential. Notwithstanding any other law, the seller and assignee under a retail charge agreement may charge, receive and collect a time price differential which shall not exceed seventeen and one-half cents (17½¢) per ten dollars ($10.00) per month, computed from month to month (which need not be a calendar month) or other regular period, on all amounts unpaid from time to time under the agreement. The time price differential under this subsection (c) may be computed for all unpaid balances within a range of not in excess of ten dollars ($10.00) on the basis of the median amount within such range, if as so computed such time price differential is applied to all unpaid balances within such range. A minimum time price differential not in excess of seventy cents (70¢) per month may be charged, received and collected under each such agreement. Acts 1961, ch. 110, § 1; T.C.A., § 47-1904; Acts 1982, ch. 723, § 2; 1983, ch. 328, § 2; 1998, ch. 799, § 1. Code Commission Notes. The time price differential provided for in subsection (c) is equivalent to an annual percentage rate of twenty-one percent (21%). Textbooks. Tennessee Jurisprudence, 24 Tenn. Juris., Usury, § 9. Law Reviews. Usury and Time Price Differentials in Tennessee (J. Daniel Morgan), 8 Mem. St. U.L. Rev. 91.