Section 16-199. DEFINITIONS

 

199.1When used in this chapter, the following terms and phrases shall have the meanings ascribed:

 

Buyer - See: "Retail buyer."

 

Consumer goods - tangible chattels bought by a natural person for use primarily for personal, family, or household purposes, including certificates or coupons exchangeable for such goods. The term "consumer goods" does not include goods acquired for commercial or business use or for resale, nor does the term include any motor vehicle as that term is defined in § 399 of this title.

 

Open end credit - consumer credit extended on an account pursuant to a plan under which the following apply:

 

(a)The seller may permit the customer to make purchases or obtain services, from time to time, directly from the seller or indirectly by use of a credit card, or other device, as the plan may provide;

 

(b)The buyer has the privilege of paying the balance in full or in installments; and

 

(c)A finance charge, as determined by § 106(a) of the Truth in Lending Act (Pub. L. 90-321, 82 Stat. 146), as applicable to retail transactions, may be computed from time to time on an outstanding unpaid balance.

 

The term "open end credit" does not include negotiated advances under an open end real estate mortgage or a letter of credit.

 

Organization - a corporation, agency, trust, estate, partnership, cooperative, or association. Person - a natural person or an organization.

 

Retail buyer or buyer - a natural person who buys consumer goods or services from a retail seller in a retail installment transaction.

 

Retail installment contract - a contract entered into by a retail buyer and a retail seller evidencing a retail installment transaction involving other than open end credit.

 

Retail installment transaction - any retail transaction between a retail seller and a retail buyer in which there is an agreement for the purchase of consumer goods or services, or both, for which the price is to be paid in one or more deferred installments and the "amount financed" (as defined by Regulation Z of the Board of Governors of the Federal Reserve System) does not exceed twenty-five thousand dollars ($ 25,000).

 

The term "retail installment transaction" shall include open end and other than open end transactions, and shall also include any transactions involving a contract in the form of a bailment or a lease if the bailee or lessee contracts to pay compensation for the use of the consumer goods or services, or both, which are the subject of that contract and it is agreed that the bailee or lessee is bound to become, or, for no further (or a merely nominal) consideration, has the option, upon full compliance with the provisions of the bailment or lease, of becoming the owner of the consumer goods or services, or both.

 

The term "retail installment transaction" shall not include any retail transaction in which all of the following conditions apply:

 

(a)The purchase price is to be paid in full within not more than ninety (90) days from the initial billing date;

 

(b)No security interest in the consumer goods is retained by the seller and no other collateral or security is required or accepted by the seller; and

 

(c)No charge is made as consideration for the deferral of payment or as an incident to the extension of credit.

 

For the purposes of this chapter, the terms "security interest," "collateral," and "security" shall not be construed to include any mechanics lien.

 

Retail seller or seller - a person engaged in the District of Columbia in the business of selling consumer goods or services involving retail installment transactions.

 

Sales finance company - any person who, in the District, regularly purchases retail installment contracts or evidences of indebtedness arising from retail installment transactions.

 

Series of sales - a series of consumer credit sales transactions made pursuant to an agreement providing for the addition of the deferred payment price of that sale to an existing outstanding balance, where the person to whom the credit is extended has approved in writing both the annual percentage rate or rates and the method of computing the finance charge or charges, and where the creditor retains no security interest in any property as to which he has received payments aggregating the amount of the sales price including any finance charges attributable thereto.

 

In the case of items purchased on different dates, the first purchased shall be deemed first paid for, and in the case of items purchased on the same date, the lowest priced shall be deemed first paid for.

 

Services - work, labor, or other kind of activity furnished, or agreed to be furnished, in connection with the delivery, installation, servicing, repair, or improvement of consumer goods; but the term "services" shall not include work, labor, or other activity furnished or agreed to be furnished for which the price or tariff charged or to be charged is required by law to be determined or approved by, or to be filed, subject to approval or disapproval, with the United States, or the District, or a department, division, agency, officer, or official of either of such governments.