GENERAL ASSEMBLY OF NORTH CAROLINA
SESSION 1999

SESSION LAW 1999-416
HOUSE BILL 885

AN ACT TO PROTECT CONSUMERS BY REQUIRING CONTRACTS FOR THE RENTAL OF SELF-SERVICE STORAGE TO CLEARLY STATE CERTAIN TERMS REGARDING THE IMPOSITION OF LATE FEES.

The General Assembly of North Carolina enacts:

Section 1.  Chapter 66 of the General Statutes is amended by adding a new Article to read:
"ARTICLE 35.
"Self-Service Storage Rental Contracts.
"§ 66-280.  Contract requirements.
A rental contract for the storage of personal property in a self-service storage business shall state, in bold type of a minimum size of 14 points and conspicuously placed, the terms regarding the imposition of late fees, the terms regarding any consequences of a late payment, and the terms, if any, that pertain to the payment of court costs, attorneys' fees, and any other costs associated with the payment of late fees or with judgment against the consumer for late rental payments or late fees.
"§ 66-281.  Late fees.
(a)	In all rental contracts in which a definite time for the payment of the rent is fixed, the late fee for each rental unit  shall not exceed fifteen percent (15%) of the rental payment and shall not be imposed by the self-service storage business until the rental payment for that rental unit is five days or more late.
(b)	A late fee under this section may be imposed only one time for each late rental payment.  A late fee for a specific late rental payment shall not be deducted from a subsequent rental payment so as to cause the subsequent rental payment to be in default.
"§ 66-282.  Violations.
(a)	Late fees and attorney fees are not recoverable if a self-service storage business violates the provisions of G.S. 66-281.
(b)	Any waiver of any of the provisions of this Article shall be deemed void and unenforceable.
(c)	The remedies provided in this section are in addition to any other remedies provided for by law or in equity."
Section 2.  This act becomes effective October 1, 1999, and applies to rental contracts for self-service storage entered into on or after that date.
In the General Assembly read three times and ratified this the 14th day of July, 1999.

s/	Dennis A. Wicker
President of the Senate

s/	James B. Black
Speaker of the House of Representatives

s/	James B. Hunt, Jr.
Governor

Approved 10:12 p.m. this 5th day of August, 1999