Code of the District of Columbia

§ 28–3802. Definitions.

As used in this chapter —

(1) “revolving credit account” means a revolving credit account as defined in section 28-3701 of this subtitle;

(2) “consumer credit sale” means a sale of goods or services in which —

(A) a credit is granted by a person who regularly engages as a seller in credit transactions of the same kind;

(B) the buyer is a natural person;

(C) the goods or services are purchased primarily for a personal, family, household, or agricultural purpose;

(D) either the debt is payable in installments or a finance charge is made; and

(E) the amount financed does not exceed $25,000.

The term includes any contract in the form of a bailment or lease if the bailee or lessee contracts to pay as compensation for use a sum substantially equivalent to or in excess of the aggregate value of the property and services involved and it is agreed that the bailee or lessee will become, or for no other or a nominal consideration has the option to become, the owner of the property upon full compliance with his obligations under the contract.

(3) “direct installment loan” means a direct installment loan as that term is used in section 28-3308 and does not include a loan secured on real estate or a direct motor vehicle installment loan covered by Chapter 36 of this subtitle.

(4) “cross collateral” means an arrangement wherein a seller in a “consumer credit sale” secures a debt arising from the sale by contracting for a security interest in other property if as a result of a prior sale the seller has an existing security interest in the other property. The seller may also contract for a security interest in the property sold in the subsequent sale as a security for the previous debt.