Please note that there has been a revision made to the LAW®553-NC 3/08 contract as well as the LAW®553-NC-ARB 3/08. The new form numbers are LAW®553-NC(4P)7/14 and LAW®553-NC-ARB7/14.
Per North Carolina law (NC ST § 6-21.2), a creditor may charge attorney’s fees in the amount of 15% of the outstanding balance owed at the time of a lawsuit. The fee provision was modified to include the limitation on attorney’s fees (3.c. on the back). Additionally, as a result of user requests and in an effort to continually update and increase acceptance of our LAW 553 contracts, we have made the following changes to our 553 contracts in North Carolina:
· Changed “Creditor-Seller” to “Seller-Creditor”
· Modified the “Primary Use for Which Purchased” section and the “NOTICE” on the back
· Added check boxes to Credit Disability for Buyer, Co-Buyer and Both
· Modified the Payment Schedule boxes for ease of programming
· Added 3 additional to/for lines in Other Charges (4I) in the Itemization of Amount Financed
· Added language to Section 2.c. and modified language in 2.d. on the back
· Added the Servicing and Collection Contacts language as number 6 on the back
· Updated the Arbitration language and included an additional signing disclosure for Arbitration on the ARB version contract
The new North Carolina forms will require re-programming. The standard and ARB versions will NOT line up the same for programming purpose due to the addition of the Agreement to Arbitrate disclosure.
Dealers should begin using the new contracts on July 1st, 2014.