{"data":{"id":"us-ky/krs-371.270","jurisdiction":"us-ky","citation":"KRS 371.270","heading":"Delinquency and collection charge for installment defaults -- Refinancing","body":"options.\n(1) The holder of any retail installment contract, if it so provides, may collect a\ndelinquency and collection charge on each installment in default for a peri od of\nmore than ten (10) days in the amount not to exceed five (5%) percent of each\ninstallment or fifteen dollars ($15), whichever is greater.\n(2) The holder of a retail installment contract upon request by the buyer, may agree to\nan amendment thereto to extend or defer the scheduled due date of all or any part of\nany installment or installments or to renew, restate, or reschedule the unpaid\nbalance of the contract, and may collect for same a refinance charge not to exceed\nan amount ascertained as provided  under either of the following optional methods\nof computation:\nOption I. The refinance charge may be computed on the amount of the\nscheduled installment or installments extended or deferred for the period of\nextension or deferment at the rate of one and one-half percent (1.5%) per\nmonth; provided that a minimum deferment charge of one dollar ($1) shall be\npermitted. Such amendment may also include payment by the buyer of the\nadditional cost to the holder of premiums for continuing in force any\ninsurance coverages provided for in the contract until the end of such deferral\nperiod, and of any additional necessary official fees.\nOption II. The refinance charge may be computed as follows: The sum of the\nunpaid balance as of the refinancing date and the cost f or any insurance and\nother benefits incidental to the refinancing, and for any additional necessary\nofficial fees and any accrued delinquency and collection charges, after\ndeducting a refund credit as for prepayment pursuant to subsection (2) of KRS\n371.260, shall constitute a principal balance for such refinancing on which the\nrefinance charge may be computed for the term of the refinanced contract at\nthe applicable rate for finance charges. Acquisition costs under the refund\nschedule in subsection (2) of KRS 371.260 shall not apply in calculating\nrefinance charges.\n(3) The amendment to the contract must be confirmed in a writing signed by the holder.\nThe writing shall set forth the terms of the amendment and the new due dates and\namounts of the installment s, and shall either be delivered to the buyer or mailed to\nhim at his address as shown on the contract. Said writing together with the original\ncontract and any previous amendments thereto shall constitute the retail installment\ncontract.","path":["KRS Chapter 371"],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=56170","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:59:07Z","sha256":"42a8126b9c911b007932bc374d0827af265062fead6b1c2dd886192664d1cd7d","source_id":"us-ky","stale":false,"prev":"us-ky/krs-371.260","next":"us-ky/krs-371.280"},"notice":"GroundRules: Original legal text. Not legal advice."}