§ 24-4.5-6-111 — Injunctions against unconscionable agreements and fraudulent or unconscionable conduct

Injunctions Against Unconscionable
Agreements and Fraudulent or Unconscionable Conduct — (1) The
department may bring a civil action to restrain a creditor or a person
acting in behalf of a creditor 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 others:
(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 Article is not in itself unconscionable.
Formerly: Acts 1971, P.L.366, SEC.7. As amended by
P.L.14-1992, SEC.53; P.L.122-1994, SEC.35.