§14A-6-111. Injunctions against unconscionable agreements and
437 words·~2 min read·
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fraudulent or unconscionable conduct.
(1)The Administrator may bring a civil action to restrain a creditor or a person acting in his behalf from engaging in a course of
(a)making or enforcing unconscionable terms or provisions
of consumer credit sales, consumer leases, or consumer
loans;
(b)fraudulent or unconscionable conduct in inducing
debtors to enter into consumer credit sales, consumer
leases, or consumer loans; or
(c)fraudulent or unconscionable conduct in the collection
of debts arising from consumer credit sales, consumer
leases, or consumer loans.
(2)In an action brought pursuant to this section the court may grant relief only if it finds
(a)that the respondent has made unconscionable agreements
or has engaged or is likely to engage in a course of
fraudulent or unconscionable conduct;
(b)that the agreements or conduct of the respondent has
caused or is likely to cause injury to consumers; and
(c)that the respondent has been able to cause or will be
able to cause the injury primarily because the
transactions involved are credit transactions.
(3)In applying this section, consideration shall be given to each of the following factors, among other:
(a)belief by the creditor at the time consumer credit
sales, consumer leases, or consumer loans are made
that there was no reasonable probability of payment in
full of the obligation by the debtor;
(b)in the case of consumer credit sales or consumer
leases, knowledge by the seller or lessor at the time
of the sale or lease of the inability of the buyer or
lessee to receive substantial benefits from the
property or services sold or leased;
(c)in the case of consumer credit sales or consumer
leases, gross disparity between the price of the
property or services sold or leased and the value of
the property or services measured by the price at
which similar property or services are readily
obtainable in credit transactions by like buyers or
lessees;
(d)the fact that the creditor contracted for or received
separate charges for insurance with respect to
consumer credit sales or consumer loans with the
effect of making the sales or loans, considered as a
whole, unconscionable; and
(e)the fact that the respondent has knowingly taken
advantage of the inability of the debtor reasonably to
protect his interests by reason of physical or mental
infirmities, ignorance, illiteracy or inability to
understand the language of the agreement, or similar
factors.
(4)In an action brought pursuant to this section, a charge or practice expressly permitted by this act is not in itself unconscionable. Added by Laws 1969, c. 352, § 6-111, eff. July 1, 1969.