CHAPTER 358-K REGULATION OF CONSUMER CREDIT TRANSACTIONS
Section 358-K:2
358-K:2 Rebate of Interest Upon Prepayment of Precomputed Consumer Credit Transaction Entered Into Prior to July 1, 1985. –
I. Notwithstanding any other law to the contrary, upon prepayment in full of a precomputed consumer credit transaction, pursuant to acceleration or otherwise, the creditor shall rebate to the consumer an amount not less than the unearned portion of the interest computed according to this section. If the rebate otherwise required is less than $1, no rebate need be made.
II. With respect to a precomputed consumer credit transaction payable according to its original terms in more than 48 monthly installments, the rebate of the unearned portion of the interest shall be computed by applying, according to the actuarial method, the contract rate of interest to the actual unpaid balances of the amount financed for the actual time that the unpaid balances were outstanding as of the date of payment, giving effect to each payment as of the date of the payment. The bank commissioner may adopt rules under RSA 541-A, relative to simplifying the calculation of the unearned portion of the interest, including allowance of the use of tables or other methods and based on the assumption that all payments were made as originally scheduled.
III. With respect to a precomputed consumer credit transaction payable according to its original terms in 48 monthly installments or less, the rebate of the unearned portion of the interest may be computed according to the sum of the balances method, also known as the "Rule of 78," or by any other method to which the consumer is entitled by contract. If a rebate of interest may be computed according to the sum of the balances method, the creditor shall, prior to the closing of the transaction, furnish the consumer with a written explanation of such method of rebating in a form approved for that use by the bank commissioner.
IV. This section does not preclude the collection or retention by the creditor of delinquency charges.
V. This section only applies with respect to precomputed consumer credit transactions entered into on or after July 1, 1984 and prior to July 1, 1985.
Source. 1983, 463:1, eff. Aug. 26, 1983. 2019, 36:1, eff. May 15, 2019.