§ 24-9-5-4 — Liability for violation; exceptions; damages; equitable relief; recoupment; action by homeowner protection unit for deceptive act; statute of limitations; priority of damages over civil penalties

Indiana § 24-9-5-4

• Jurisdiction: Indiana
• Art. 9: HOME LOAN PRACTICES
• Ch. 5: Claims, Defenses, Remedies

Text

(a) This section does not apply to a violation of
IC 24-9-3-7(c)(4), IC 24-9-3-7(c)(5), or IC 24-9-3-7(c)(6). A person
who violates this article is liable to a person who is a party to the home
loan transaction, mortgage transaction (as defined in IC 24-9-3-7(a)),
or real estate transaction (as defined in IC 24-9-3-7(b)), as appropriate,
that gave rise to the violation for the following:
(1) Actual damages, including consequential damages. A person
is not required to demonstrate reliance in order to receive actual
damages.
(2) Statutory damages equal to two (2) times the finance charges
agreed to in a home loan agreement.
(3) Costs and reasonable attorney's fees.
(b) A person may be granted injunctive, declaratory, and other
equitable relief as the court determines appropriate in an action to
enforce compliance with this chapter.
(c) The right of rescission granted under 15 U.S.C. 1601 et seq. for
a violation of the federal Truth in Lending Act (15 U.S.C. 1601 et seq.)
is available to a person acting only in an individual capacity by way of
recoupment as a defense against a party foreclosing on a home loan at
any time during the term of the loan. Any recoupment claim asserted
under this provision is limited to the amount required to reduce or
extinguish the person's liability under the home loan plus amounts
required to recover costs, including reasonable attorney's fees. This
article shall not be construed to limit the recoupment rights available
to a person under any other law.
(d) The remedies provided in this section are cumulative but are not
intended to be the exclusive remedies available to a person. Except as
provided in subsection (e), a person is not required to exhaust any
administrative remedies under this article or under any other applicable
law.
(e) Before bringing an action regarding an alleged deceptive act
under this chapter, a person must:
(1) notify the homeowner protection unit established by IC 4-6-12-2 of the alleged violation giving rise to the action; and
(2) allow the homeowner protection unit at least ninety (90) days
to institute appropriate administrative and civil action to redress
a violation.
(f) An action under this chapter must be brought within five (5)
years after the date that the person knew, or by the exercise of
reasonable diligence should have known, of the violation of this article.
(g) An award of damages under subsection (a) has priority over a
civil penalty imposed under this article.

Legislative History

As added by P.L.73-2004, SEC.33. Amended by P.L.3-2005, SEC.1; P.L.105-2009, SEC.10; P.L.114-2010, SEC.19.