(1)If a creditor has
violated the provisions of this code applying to limitations on the schedule of
payments or loan term for supervised loans contained in section 5-2-308 or
authority to make supervised loans contained in section 5-2-301, the consumer is
not obligated to pay the finance charge and has a right to recover from the person
violating this code or from an assignee of that person's rights who undertakes
direct collection of payments or enforcement of rights arising from the debt a
penalty in an amount determined by the court not in excess of three times the
amount of the finance charge. With respect to violations arising from consumer
credit transactions made pursuant to revolving credit accounts, no action pursuant
to this subsection (1) may be brought more than two
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(1) If a creditor has
violated the provisions of this code applying to limitations on the schedule of
payments or loan term for supervised loans contained in section 5-2-308 or
authority to make supervised loans contained in section 5-2-301, the consumer is
not obligated to pay the finance charge and has a right to recover from the person
violating this code or from an assignee of that person's rights who undertakes
direct collection of payments or enforcement of rights arising from the debt a
penalty in an amount determined by the court not in excess of three times the
amount of the finance charge. With respect to violations arising from consumer
credit transactions made pursuant to revolving credit accounts, no action pursuant
to this subsection (1) may be brought more than two years after the violation
occurred. With respect to violations arising from other consumer credit
transactions, no action pursuant to this subsection (1) may be brought more than
one year after the due date of the last scheduled payment of the agreement with
respect to which the violation occurred.
(2) A consumer is not obligated to pay a charge in excess of that allowed by
this code, and if a consumer has paid an excess charge he or she has a right to a
refund. A refund may be made by reducing the consumer's obligation by the
amount of the excess charge. If the consumer has paid an amount in excess of the
lawful obligation under the agreement, the consumer may recover the excess
amount from the person who made the excess charge or from an assignee of that
person's rights who undertakes direct collection of payments from or enforcement
of rights against consumers arising from the debt.
(3) If a consumer is entitled to a refund and a person liable to the consumer
refuses to make a refund within a reasonable time after demand, the consumer may
recover from that person a penalty in an amount determined by a court not
exceeding the greater of either the amount of the finance charge or ten times the
amount of the excess charge. If the creditor has made an excess charge in
deliberate violation of or in reckless disregard for this code, the penalty may be
recovered even though the creditor has refunded the excess charge. No penalty
pursuant to this subsection (3) may be recovered if a court has ordered a similar
penalty assessed against the same person in a civil action by the administrator
described in section 5-6-114. With respect to excess charges arising from revolving
credit accounts, no action pursuant to this subsection (3) may be brought more than
two years after the time the excess charge was made. With respect to excess
charges arising from other consumer credit transactions, no action pursuant to this
subsection (3) may be brought more than one year after the due date of the last
scheduled payment of the agreement pursuant to which the charge was made.
(4) Except as otherwise provided, no violation of this code impairs rights on a
debt.
(5) If an employer discharges an employee in violation of the provisions
prohibiting discharge contained in section 5-5-107, the employee may within ninety
days bring a civil action for recovery of wages lost as a result of the violation and
for an order requiring the reinstatement of the employee. Damages recoverable
shall not exceed lost wages for six weeks.
(6) If the creditor establishes by a preponderance of evidence that a violation
is unintentional or the result of a bona fide error, notwithstanding the maintenance
of procedures reasonably adopted to avoid the error, no liability is imposed under
subsections (1) and (3) of this section, and the validity of the transaction is not
affected.
(7) In any case in which it is found that a creditor has violated this code, the
court may award reasonable attorney fees incurred by the consumer.
(8) If a creditor repeatedly fails to provide a consumer with a statement of an
annual percentage rate or finance charge as and to the extent required by the
provisions on disclosure contained in section 5-3-101 of this code and has received
written notice from the administrator of such repeated failure, any such subsequent
failure by the creditor shall relieve any consumer receiving such defective
disclosure from any obligation to pay any finance charge in connection with such
consumer credit transaction.