§ 40-14-616 — Enforcement

Wyoming § 40-14-616

• Jurisdiction: Wyoming
• Title 40: Trade and Commerce
• Ch. 14: WYOMING UNIFORM CONSUMER CREDIT CODE
• Art. 6: ADMINISTRATION

Text

(a) The administrator, in carrying out enforcement
activities under this section, in cases where an annual
percentage rate or finance charge was inaccurately disclosed,
shall notify the creditor of the disclosure error and is
authorized, in accordance with this section, to require the
creditor to make an adjustment to the account of the person to
whom credit was extended, to assure that the person will not be
required to pay a finance charge in excess of the finance charge
actually disclosed or the dollar equivalent of the annual
percentage rate actually disclosed, whichever is lower. For the
purposes of this section, except where the disclosure error
resulted from a willful violation which was intended to mislead
the person to whom credit was extended, in determining whether a
disclosure error has occurred and in calculating any adjustment:
(i) The administrator shall apply:
(A) For transactions consummated after January
1, 1977, until March 31, 1982, with respect to the annual
percentage rate, a tolerance of one-quarter of one percent
(.25%) more or less than the actual rate determined without
regard to W.S. 40-14-225 and 40-14-323, except in the case of an
irregular mortgage lending transaction consummated between
January 1, 1977, and March 31, 1982, in which a tolerance of
one-half of one percent (.5%) is allowed; and
(B) With respect to the finance charge, a
corresponding numerical tolerance as generated by the tolerance
provided under this section for the annual percentage rate,
except that with respect to transactions consummated on or after
April 1, 1982 the administrator shall apply:
(I) For transactions that have a scheduled
amortization of ten (10) years or less with respect to the
annual percentage rate, a tolerance not to exceed one-quarter of
one percent (.25%) more or less than the actual rate determined
without regard to W.S. 40-14-225 and 40-14-323;
(II) For transactions that have a scheduled
amortization of more than ten (10) years, with respect to the
annual percentage rate, only such tolerances as are allowed
under W.S. 40-14-225 and 40-14-323; and
(III) For all transactions, with respect to
the finance charge, a corresponding numerical tolerance as
generated by the tolerances provided under this subsection for
the annual percentage rate.
(b) The administrator shall require an adjustment when he
determines that the disclosure error resulted from a clear and
consistent pattern or practice of violations, gross negligence
or a willful violation which was intended to mislead the person
to whom the credit was extended. Notwithstanding the preceding
sentence, except where the disclosure error resulted from a
willful violation which was intended to mislead the person to
whom credit was extended, the administrator need not require
such an adjustment if he determines that the disclosure error:
(i) Resulted from an error involving the disclosure
of a fee or charge that would otherwise be excludable in
computing the finance charge, including but not limited to
violations involving the disclosures described in rules adopted
by the administrator in which event the administrator may
require such remedial action as he determines to be equitable,
except that for transactions consummated on or after April 1,
1982 the adjustment shall be ordered for violations of W.S.
40-14-213(b) and 40-14-311(b);
(ii) Involved a disclosed amount which was ten
percent (10%) or less of the amount that should have been
disclosed and, in cases where the error involved a disclosed
finance charge, the annual percentage rate was disclosed
correctly, and, in cases where the error involved a disclosed
annual percentage rate, the finance charge was disclosed
correctly, in which event the administrator may require such
adjustment as he determines to be equitable;
(iii) Involved a total failure to disclose either the
annual percentage rate or the finance charge, in which event the
administrator may require any adjustment as he determines to be
equitable; or
(iv) Resulted from any other unique circumstance
involving clearly technical and nonsubstantive disclosure
violations that do not adversely affect information provided to
the consumer and that have not misled or otherwise deceived the
consumer.
(c) In the case of other disclosure errors, the
administrator may require such an adjustment.
(d) Notwithstanding subsection (b) of this section, no
adjustment shall be ordered:
(i) If it would have a significantly adverse impact
upon the safety or soundness of the creditor, but, in any such
case, the administrator may require a partial adjustment in an
amount which does not have such an impact, except that, with
respect to any transaction consummated after the effective date
of this section, the administrator shall require the full
adjustment, but permit the creditor to make the required
adjustment in partial payments over an extended period of time
which the administrator considers to be reasonable;
(ii) If the amount of the adjustment would be less
than one dollar ($1.00), except that if more than one (1) year
has elapsed since the date of the violation, the administrator
may require that the amount shall be paid into the state
treasury; or
(iii) Except where disclosure error resulted from a
willful violation which was intended to mislead the person to
whom credit was extended, in the case of an open-end credit
plan, more than two (2) years after the violation, or in the
case of any other extension of credit, as follows:
(A) With respect to creditors that are subject
to examination by the administrator, except in connection with
violations arising from practices identified in the current
examination and only in connection with transactions that are
consummated after the date of the immediately preceding
examination, except that where practices giving rise to
violations identified in earlier examinations have not been
corrected, adjustments for those violations shall be required in
connection with transactions consummated after the date of the
examination in which the practices were first identified;
(B) With respect to creditors that are not
subject to examination by the administrator, except in
connection with transactions that are consummated after March
31, 1980; and
(C) In no event after the later of the
expiration of the life of the credit extension or two (2) years
after the agreement to extend credit was consummated.
(e) Notwithstanding any other provision of this section,
an adjustment under this subsection may be required by the
administrator only by an order issued in accordance with the
rules and regulations of the administrator pursuant to this act.
(f) Except as otherwise specifically provided in this
subsection and notwithstanding any other provision of law, the
administrator may not require a creditor to make dollar
adjustments for errors in any requirements under this act except
as otherwise specifically provided.
(g) A creditor is not subject to an order to make an
adjustment, if, within sixty (60) days after discovering a
disclosure error, whether pursuant to a final written
examination report or through the creditor's own procedures, the
creditor notifies the person concerned of the error and adjusts
the account so as to assure that the person will not be required
to pay a finance charge in excess of the finance charge actually
disclosed or the dollar equivalent of the annual percentage rate
actually disclosed, whichever is lower.
(h) Notwithstanding the second sentence of subsection (a),
subparagraph (d)(iii)(A) and subparagraph (d)(iii)(B) of this
section, the administrator shall require an adjustment for an
annual percentage rate disclosure error that exceeds a tolerance
of one-quarter of one percent (.25%) less than the actual rate
determined without regard to W.S. 40-14-225 and 40-14-323,
except in the case of an irregular mortgage lending transaction
with respect to any transaction consummated between January 1,
1977 and March 31, 1980.
Part 2. Notification and Fees