Definition: Consumer Credit Sale

(1)Consumer credit sale is a transaction in which:

(a)a sale of goods, services or an interest in land is made and in which credit is granted by a seller who regularly engages in credit transactions as a seller;

(b)the buyer is a person other than an organization; and

(c)the goods, services or interest in land are purchased primarily for a personal, family, household or agricultural purpose.

(2)Consumer credit sale does not include:

(a)a sale in which the seller allows the buyer to purchase goods or services pursuant to a credit card or similar arrangement; or

(b)a sale of an interest in land if the credit service charge, however calculated, does not exceed ten percent (10%) per year calculated on the unpaid balances of the amount financed according to the United States rule. For the purpose of calculating the rate of the credit service charge, non-periodic charges made at the inception of the sale which are included in the credit service charge shall be COL120106 CH. 2 CREDIT SALES amortized over the term of the sale agreement notwithstanding that the debt is paid prior to the end of the agreed term and charges for the privilege of prepaying the debt shall not be included in the credit service charge.