Finance charges

(a) General rule.--Pursuant to this section and the provisions of a closed-end credit agreement or an open-end credit agreement, a seller and holder may charge, receive and collect a finance charge. (b) Closed-end credit agreement.--A finance charge under a closed-end credit agreement shall be: (1) measured for a period between the date of the agreement and the due date of the last installment; and (2) calculated for the period according to the actuarial method or the United States Rule method, at a rate agreed to by the buyer and the seller or holder. (c) Open-end credit agreement.-- (1) Except as provided in paragraph (2), a finance charge on an open-end credit agreement: (i) shall be computed based on the outstanding monthly balances; and (ii) may not exceed the rate agreed to by the buyer and the seller or holder. (2) A minimum finance charge of $1 per month may be made for each month, if the finance charge so computed is less than that amount.