2025 Session
Last amended: 1971 session
§ 334.18 — Penalties for Violations
Plain-Language Summary
A seller who violates the open-end credit rules must pay the buyer three times the finance charges they collected as a penalty. This applies as long as the violation continues. Unintentional mistakes or honest errors are not penalized.
334.18 PENALTIES FOR VIOLATIONS.
Any seller who violates any provision of sections 334.16 to 334.18, except as a result of an unintentional act or bona fide error, shall forfeit to the buyer three times any finance charge imposed, charged or collected under or in connection with the related open end credit plan, agreement or arrangement for so long as the violation continues.
History:
History: History:
1971 c 877 s 3
Practical Notes
The triple-damages penalty is a strong incentive for sellers to follow the rules on open-end credit. If a store is overcharging finance charges on your credit account, you may be entitled to three times what was charged. However, honest calculation errors are not punished.