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PARRIS N. GLENDENING, Governor
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S.B. 482
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(4) The applicable repayment schedule.
(b) (1) The credit grantor shall notify each affected borrower of an
amendment in the manner set forth in the agreement governing the plan and in
compliance with the requirements of the federal Truth in Lending Act, and
regulations promulgated thereunder. If the amendment has the effect of increasing
the interest, finance charges, or other fees and charges to be paid by the borrower,
including, but not limited to those enumerated in § 12-905 of this subtitle, [or
altering the manner of their computation,] the credit grantor shall mail or deliver to
the borrower, at least 25 days before the effective date of the amendment, a clear and
conspicuous written notice which shall describe the amendment, including:
(i) A clear statement comparing the original terms and the terms
under the amended agreement; and
(ii) Any other pertinent information required by the provisions of
this section.
(2) If the amendment has the effect of increasing the interest, finance
charges, or other charges to be paid by the borrower, the amendment shall become
effective as provided in subsections (c) and (d) of this section.
(c) (1) Subject to the provisions of this paragraph, an amendment made
under this section shall become effective as to a particular borrower on:
(i) The first day of the billing cycle during which the effective date
of the amendment occurs; or
(ii) Any later date specified in the notice of amendment.
[(2) The credit grantor amending the agreement governing a revolving
credit plan under this subsection shall send a second notice in addition to the one
under subsection (b) of this section with the borrower's periodic statement
immediately following the initial notice. The second notice shall comply with all the
requirements of subsection (b) of this section.]
[(3)] (2) After receiving the notice of amendment under subsection (b) of
this section, the borrower may send a signed, written notice of refusal to the creditor
that the borrower refuses to accept the amendment.
[(4)] (3) The notice of refusal sent by the borrower may be accompanied
by a payment on the borrower's account and shall be mailed within 25 days of the
mailing of the notice of amendment.
[(5)] (4) Any borrower who gives timely notice of refusal may use the
account pursuant to its original, unamended terms for:
(i) 1. The duration of the time for which a fee was paid for use of
the plan through the borrower's credit device; or
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2. Any longer period of time as determined by the credit
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grantor; or
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- 4629 -
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