462

LAWS OF MARYLAND

[Ch. 49

12-506. MAXIMUM FINANCE CHARGE - OPEN END ACCOUNT.

(A) MAXIMUM FINANCE CHARGE.

IN AN OPEN END ACCOUNT, THE FINANCE CHARGE MAY NOT
EXCEED:

(1)   1.5 PERCENT PER MONTH ON THAT PART OF THE
OUTSTANDING BALANCE NOT EXCEEDING $500; AND

(2)    1 PERCENT PER MONTH ON THAT PART OF THE
OUTSTANDING BALANCE EXCEEDING $500.

(B) COMPUTATION BY BALANCE RANGES.

IN AN OPEN END ACCOUNT, IF A FINANCE CHARGE IS
APPLIED TO ALL OUTSTANDING BALANCES WITHIN A RANGE NOT
EXCEEDING $10, THE FINANCE CHARGE MAY BE COMPUTED ON THE
BASIS OF THE MEDIAN AMOUNT WITHIN THE RANGE.

(C) COMPUTATION OF OUTSTANDING BALANCE.

FOR THE PURPOSE OF COMPUTING THE OUTSTANDING BALANCE
OF AN OPEN END ACCOUNT SUBJECT TO THE FINANCE CHARGE, THE
OUTSTANDING BALANCE:

(1)    ON ANY DAY MAY NOT EXCEED THE SUM OF THE
TOTAL CHARGES TO THE ACCOUNT LESS THE AMOUNTS PAID OR
CREDITED TO THE ACCOUNT BEFORE THAT DAY; OR

(2)    MAY BE COMPUTED BY THE AVERAGE DAILY
BALANCE METHOD.

(D) LIMITATION OF FINANCE CHARGE.

IN AN OPEN END ACCOUNT, THE FINANCE CHARGE IN ANY
GIVEN MONTH MAY NOT EXCEED AN AMOUNT WHICH MAY BE
ASSESSED PURSUANT TO SUBSECTION (C) (2) OF THIS SECTION.

(E) MAILING PERIODIC STATEMENT.

A FINANCE CHARGE FOR A MONTHLY PERIOD MAY NOT BE
IMPOSED ON AN OPEN END ACCOUNT UNLESS THE PERIODIC
STATEMENT FOR THAT MONTH IS MAILED TO THE BUYER AT LEAST
15 DAYS BEFORE THE END OF THE NEXT BILLING CYCLE.

(F) FINANCE CHARGE IF THERE ARE TWO OR MORE
ACCOUNTS.

(1) IF A SELLER OR FINANCIAL INSTITUTION
ESTABLISHES TWO OR MORE OPEN END ACCOUNTS FOR AN
INDIVIDUAL BUYER, THE SELLER OR FINANCIAL INSTITUTION MAY
NOT IMPOSE A HIGHER RATE OF FINANCE CHARGE THAN WOULD BE
OBTAINED IF THERE WAS BUT ONE OPEN END ACCOUNT BETWEEN