South Carolina Code of Regulations
Chapter 28 - DEPARTMENT OF CONSUMER AFFAIRS
28-50-2.210 - 3.210. "Rebate Upon Prepayment," Simplification of the Calculation of the Unearned Portion of the Finance Charge, Allowance of the Use of Tables.
28-50-2.210, 3.210. "Rebate Upon Prepayment," Simplification of the Calculation of the Unearned Portion of the Finance Charge, Allowance of the Use of Tables.
(Statutory Authority: 1976 Code §§ 37-2-210 and 37-3-210)
A. Any chart or table may be utilized for the purpose of determining the rebate provided:
(1) It is prepared in accordance with the actuarial method as required by Sections 2.210(5)(b) and 3.210(5)(b) of the Consumer Protection Code;
(2) It is based upon a calendar year (365 days) and takes into consideration days as well as months in computing refunds of unearned finance charge; and
(3) It bears the name and address of the person responsible for its production and an identification number assigned to it by that person which shall be the same for each chart or table so produced with like numerical content and configuration.
B. The rebate may be computed using the Annual Percentage Rate required to be disclosed to the consumer pursuant to law or at that rate rounded to the nearest one half of one percent.
C. If prepayment occurs during a deferral period the amount of any deferral charge earned at the date of prepayment shall also be computed. If the deferral charge earned is less than the deferral charge paid, the difference shall be added to the unearned portion of the finance charge. If any part of a deferral charge has been earned but has not been paid, that part shall be subtracted from the unearned portion of the finance charge or shall be added to the unpaid balance.
D. Errors in calculations of rebates which occur because of a corresponding error in a chart produced and utilized in conformity with this rule shall not subject the creditor to any penalty imposed by any provision of the South Carolina Consumer Protection Code (Act 1241 of 1974 as amended) or any statute to which that Act refers [Section 6.506(3)]; provided that upon discovery of an error in a chart the creditor shall make no further rebates based on that chart and shall promptly notify the Department of Consumer Affairs in writing of the error and identify the inaccurate chart by giving the name and address of the person responsible for its production and its identification number.
HISTORY: Added by State Register Volume 3, eff April 13, 1979.