This text of Indiana § 24-4.5-5-202 (Effect of violations on rights of parties) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Effect of Violations on Rights of Parties
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(1)If a creditor has violated the provision of this Article applying
to limitations on the schedule of payments or loan term for supervised
loans (IC 24-4.5-3-511), the debtor is not obligated to pay the loan
finance charge, and has a right to recover from the person violating this
Article 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 loan finance charge. No action pursuant
to this subsection may be brought more than one (1) year after the due
date of the last scheduled payment of the agreement with respect to
which the violation occurred.
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Effect of Violations on Rights of Parties
— (1) If a creditor has violated the provision of this Article applying
to limitations on the schedule of payments or loan term for supervised
loans (IC 24-4.5-3-511), the debtor is not obligated to pay the loan
finance charge, and has a right to recover from the person violating this
Article 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 loan finance charge. No action pursuant
to this subsection may be brought more than one (1) year after the due
date of the last scheduled payment of the agreement with respect to
which the violation occurred.
(2) If a creditor has violated the provisions of this Article applying
to authority to make consumer loans (IC 24-4.5-3-502), the loan is void
and the debtor is not obligated to pay either the principal or loan
finance charge. If the debtor has paid any part of the principal or of the
loan finance charge, the debtor has a right to recover the payment from
the person violating this Article or from an assignee of that person's
rights who undertakes direct collection of payments or enforcement of
rights arising from the debt. With respect to violations arising from
loans made pursuant to revolving loan accounts, no action pursuant to
this subsection may be brought more than two (2) years after the
violation occurred. With respect to violations arising from other loans,
no action pursuant to this subsection may be brought more than one (1)
year after the due date of the last scheduled payment of the agreement
pursuant to which the charge was paid.
(3) A debtor is not obligated to pay a charge in excess of that
allowed by this Article, and if the debtor has paid an excess charge the
debtor has a right to a refund. A refund may be made by reducing the
debtor's obligation by the amount of the excess charge. If the debtor has
paid an amount in excess of the lawful obligation under the agreement,
the debtor 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 debtors arising from the debt.
(4) If a debtor is entitled to a refund and a person liable to the debtor
refuses to make a refund within a reasonable time after demand, the
debtor may recover from that person a penalty in an amount determined
by a court not exceeding the greater of either the amount of the credit
service or loan finance charge or ten (10) 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 Article, the penalty may be
recovered even though the creditor has refunded the excess charge. No
penalty pursuant to this subsection may be recovered if a court has
ordered a similar penalty assessed against the same person in a civil
action by the department (IC 24-4.5-6-113). With respect to excess
charges arising from sales made pursuant to revolving charge accounts
or from loans made pursuant to revolving loan accounts, no action
pursuant to this subsection may be brought more than two (2) years
after the time the excess charge was made. With respect to excess
charges arising from other consumer credit sales or consumer loans, no
action pursuant to this subsection may be brought more than one (1)
year after the due date of the last scheduled payment of the agreement
pursuant to which the charge was made.
(5) Except as otherwise provided, no violation of this Article
impairs rights on a debt.
(6) If an employer discharges an employee in violation of the
provisions prohibiting discharge (IC 24-4.5-5-106), the employee may
within six (6) months 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
(6) weeks.
(7) If the creditor establishes by a preponderance of evidence that
a violation is unintentional or the result of a bona fide error, no liability
is imposed under subsections (1), (2), and (4) and the validity of the
transaction is not affected.
(8) In any case in which it is found that a creditor has violated this
Article, the court may award reasonable attorney's fees incurred by the
debtor.
(9) The department may act on behalf of a debtor to enforce the
debtor's rights under this section against a creditor who is licensed or
registered with the department or is required to be licensed or
registered with the department.
Formerly: Acts 1971, P.L.366, SEC.6. As amended by
P.L.14-1992, SEC.43; P.L.122-1994, SEC.31; P.L.172-1997,
SEC.8.