44-1366. Consumer services; delinquency fees; collection fees

A. Unless otherwise prohibited by law, a seller of consumer services may impose a delinquency fee on any consumer with an account that has an unpaid balance of more than ten dollars if the following conditions are met:

1. For a sale of consumer services for which periodic charges begin after December 31, 2000, the seller provides the consumer with a notice written in ten point bold type and in a clear and conspicuous manner that the seller imposes a fee on delinquent accounts and provides the notice not later than at the time the seller and consumer enter into the initial agreement for services.

2. At least ten days before the date that the seller imposes the fee, the seller notifies the consumer of the amount of the fee that the seller will impose if the seller does not receive the consumer's delinquent payment and the earliest date on which the seller will impose the fee. The notice prescribed in this paragraph shall appear clearly and conspicuously on the face of any invoice or other similar written document in at least ten point bold type, and the seller shall send the notice by first class mail to the consumer's last known billing address as shown on the seller's records.

3. The notice shall clearly and conspicuously identify the place and address for making the payment.

4. The consumer's invoice specifies a due date that is not before the tenth day of the service period for which the invoice is issued.

5. The seller imposes the fee at least fifteen days after the due date specified on the invoice.

6. The fee imposed by the seller is not more than five dollars for an unpaid balance of twenty-five dollars or less, or for an unpaid balance of more than twenty-five dollars, ten dollars or five per cent of the balance, whichever is more.

B. In any consumer service transaction the seller may impose a collection fee that is not more than ten dollars and that is in addition to the delinquency fee prescribed in subsection A if the seller does both of the following:

1. Sends an employee, agent or contractor of the seller to the consumer's premises to collect the payment or to disconnect or discontinue the service.

2. For a sale of consumer services for which periodic charges begin after December 31, 2000, provides the consumer with a written notice that the seller imposes a fee on delinquent accounts and provides the notice not later than at the time the seller and consumer enter into the initial agreement for services.

C. This article does not:

1. Impair the enforceability of an agreement that is for the sale of a service to a person who is not a consumer and that provides for the imposition of a delinquency fee on any unpaid balance.

2. Apply to consumer services that are subject to the jurisdiction of the corporation commission.