Rule 80-14-5-.02 - Maintenance Charges(1) The following terms shall have the following meaning as used in this Rule unless a different meaning or construction is clearly required by the context: (a) "Earned maintenance charges" shall mean those maintenance charges which are applicable to those months in the term of the loan contract in which the loan has been maintained by the licensee for a period of time of one (1) or more complete months. Such earned maintenance charges shall be determined by multiplying the total number of months in the term of the loan contract in which the loan has been maintained by the licensee by the amount of the maintenance charge authorized under O.C.G.A. § 7-3-11.(b) "Maintenance charges" shall mean charges by a licensee for maintaining a loan for a period of one or more months in accordance with the provisions of O.C.G.A. § 7-3-11 and this Rule.(c) "Month" shall mean a complete calendar month for all loans whose contract begins as of the first day of the calendar month. For all other loans, the term month shall mean a period of thirty (30) consecutive calendar days and for the purpose of calculation of refunds under the provisions of Paragraph 4 of this Rule, the term "month" shall mean thirty (30) consecutive calendar days.(d) "Unearned maintenance charges" shall mean those maintenance charges applicable to the partial month in the term of the loan contract in which the loan was maintained by the licensee for one (1) or more days but in which the loan contract was terminated prior to its scheduled maturity date on a day other than the ending day of a month as defined in this Rule.(2) A licensee may collect from an installment loan borrower a monthly maintenance charge as specified in O.C.G.A. § 7-3-11 for each month that such loan is maintained by the licensee and such maintenance charges shall be calculated and collected as follows: (a) The "total maintenance charges collectible" over the entire term of the consumer loan shall not exceed the amount obtained by multiplying the total number of months in the term of the loan contract by the monthly maintenance charge specified in the GILA except as provided in subsection (c) of this Rule.(b) The "total maintenance charges collectible per installment" shall not exceed the amount obtained by dividing the "total maintenance charges collectible" as calculated in (a) above by the total number of installments contemplated in the loan contract except as provided in subsection (c) of this Rule.(c) A borrower shall not be required by a licensee to pay an amount of maintenance charges at any one time which exceeds the "total amount of maintenance charges collectible per installment" as calculated in (b) above; provided that nothing contained herein shall be deemed to prohibit a licensee from collecting any earned but uncollected portion of such maintenance charges due and owed by the borrower to the licensee on previous installments of the same loan contract or from collecting any unearned maintenance charges which are otherwise due and owed by the borrower to the licensee by virtue of the application of the refund method prescribed in Paragraph 4 of this Rule.(3) In no event shall a licensee charge a maintenance charge to a borrower for any month in the term of the loan contract in which the loan was not maintained by the licensee and in no event shall a licensee charge a maintenance charge for maintaining a loan contract past the scheduled maturity date of the loan, regardless of the number of days such loan is maintained past the scheduled maturity date.(4) In the event that a discharge, refinancing, prepayment, acceleration, or any other event occurs which causes a consumer loan to terminate prior to its scheduled maturity date, the licensee shall make a refund of the amount of any unearned maintenance charges applicable to the loan contract.(5) Maintenance charges shall be considered as an additional charge and: (a) Shall not be considered in the calculation of any interest, fees, or other charges otherwise authorized by law or regulations including charges for any premiums for insurance written in connection with a consumer loan; provided, that such maintenance charges will be subject to the provisions of O.C.G.A. § 7-3-11.(b) A borrower's failure to pay any maintenance charges applicable to the loan when due shall not be considered by a licensee as the occurrence of an event which causes the outstanding unpaid balance of the loan contract to become immediately due and payable by virtue of any acceleration clause or other similar clause or provision contained in the loan contract.(6) If maintenance charges are to be charged and collected by a licensee on an installment loan contract the licensee shall be required to: (a) Clearly, prominently, conspicuously and separately itemize in the loan contract: i. The face amount of the contract.ii. The total amount of maintenance charges collectible under the loan.iii. The total amount of each payment including maintenance charges.iv. The total of payments including maintenance charges.(b) Provide space for and record the actual amounts of individual charges on the account record with respect to: i. The face amount of the contract.ii. The total amount of maintenance charges collectible under the loan.iii. The total amount of each payment including maintenance charges.iv. The total of payments including maintenance charges.Ga. Comp. R. & Regs. R. 80-14-5-.02
O.C.G.A. §§ 7-3-11, 7-3-14, 7-3-51.
Original Rule entitled "Maintenance Charges" adopted. F. Aug. 19, 2020; eff. Sept. 8, 2020.