§ 24-4.5-6-113 — Civil actions by department; civil penalties for violations

Indiana § 24-4.5-6-113

• Jurisdiction: Indiana
• Art. 4.5: UNIFORM CONSUMER CREDIT CODE
• Ch. 6: Administration

Text

(1) After demand, the department may
bring a civil action against a creditor for making or collecting charges
in excess of those permitted by this article. An action may relate to
transactions with more than one debtor. If it is found that an excess
charge has been made, the court shall order the respondent to refund to
the debtor or debtors the amount of the excess charge. If a creditor has
made an excess charge in deliberate violation of or in reckless
disregard for this article, or if a creditor has refused to refund an excess
charge within a reasonable time after demand by the debtor or the
department, the court may also order the respondent to pay to the
debtor or debtors a civil penalty in an amount determined by the court
not in excess of the greater of either the amount of the credit service or
loan finance charge or ten (10) times the amount of the charge.
Refunds and penalties to which the debtor is entitled pursuant to this
subsection may be set off against the debtor's obligation. If a debtor
brings an action against a creditor to recover an excess charge or civil
penalty, an action by the department to recover for the same excess
charge or civil penalty shall be stayed while the debtor's action is
pending and shall be dismissed if the debtor's action is dismissed with
prejudice or results in a final judgment granting or denying the debtor's
claim. 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. If
the creditor establishes by a preponderance of evidence that a violation
is unintentional or the result of a bona fide error, no liability to pay a
penalty shall be imposed under this subsection.
(2) The department may bring a civil action against a creditor or a
person acting in his behalf to recover a civil penalty for willfully
violating this article, and if the court finds that the defendant has
engaged in a course of repeated and willful violations of this article, it
may assess a civil penalty of no more than five thousand dollars
($5,000). No civil penalty pursuant to this subsection may be imposed
for violations of this article occurring more than two (2) years before
the action is brought or for making unconscionable agreements or
engaging in a course of fraudulent or unconscionable conduct.
(3) If the department determines, after notice and opportunity for the
person to be heard, that a person has violated this article, the
department may, in addition to or instead of all other remedies
available under this section, impose upon the person a civil penalty not
greater than ten thousand dollars ($10,000) per violation.
Formerly: Acts 1971, P.L.366, SEC.7. As amended by
P.L.14-1992, SEC.55; P.L.213-2007, SEC.16; P.L.217-2007, SEC.15;
P.L.35-2010, SEC.72.