§ 9-2225 — Waiver or agreement to forego rights; settlement of claims; authorization to confess judgment prohibited; authorization in violation of section is void

(a) A consumer shall not waive or agree to forego rights or benefits under K.S.A. 2024 Supp. 9-2223 through 9-2234, and amendments thereto, relating to covered transactions except as follows:
(1) The following may be settled by agreement if disputed in good faith. Any claim:
(A) By a consumer against a mortgage company for any violation of K.S.A. 2024 Supp. 9-2223 through 9-2234, and amendments thereto, including for a civil penalty; or
(B) against a consumer for default or for breach of a duty imposed by K.S.A. 2024 Supp. 9-2223 through 9-2234, and amendments thereto.
(2) A claim against a consumer shall be settled for less value than the amount claimed.
(3) A settlement in which the consumer waives or agrees to forego rights or benefits under K.S.A. 2024 Supp. 9-2223 through 9-2234, and amendments thereto, is invalid if the court, as a matter of law, finds the settlement to have been unconscionable at the time it was made. The competence of the consumer, any deception or coercion practiced upon the consumer, the nature and extent of the legal advice received by the consumer and the value of the consideration are relevant to the issue of unconscionability.
(b) A consumer may not authorize any person to confess judgment on a claim arising out of a covered transaction. An authorization in violation of this section shall be void.
(c) This section shall be a part of and supplemental to the Kansas mortgage business act.

Legislative History

L. 2024, ch. 6, § 5; January 1, 2025.