§ 6-1-1109 — Unconscionability

Colorado § 6-1-1109

• Jurisdiction: Colorado
• Title 06: Consumer
• Art.: Colorado Consumer Protection Act

Text

(1) A foreclosure consultant or associate may
not facilitate or engage in any transaction that is unconscionable given the terms
and circumstances of the transaction.

(2) (a) If a court, as a matter of law, finds a foreclosure consultant contract or
any clause of such contract to have been unconscionable at the time it was made,
the court may refuse to enforce the contract, enforce the remainder of the contract
without the unconscionable clause, or so limit the application of any
unconscionable clause as to avoid an unconscionable result.

(b) When it is claimed or appears to the court that a foreclosure consultant
contract or any clause of such contract may be unconscionable, the parties shall be
afforded a reasonable opportunity to present evidence as to its commercial setting,
purpose, and effect, to aid the court in making the determination.

(c) In order to support a finding of unconscionability, there must be evidence
of some bad faith overreaching on the part of the foreclosure consultant or
associate such as that which results from an unreasonable inequality of bargaining
power or other circumstances in which there is an absence of meaningful choice for
one of the parties, together with contract terms that are, under standard industry
practices, unreasonably favorable to the foreclosure consultant or associate.

Legislative History

Source: L. 2006: Entire part added, p. 1338, � 1, effective May 30.