(1) With respect to a consumer credit agreement, if the court finds the agreement
or any part of the agreement to have been unconscionable at the time it was made,
the court may refuse to enforce the agreement, or it may enforce the remainder of
the agreement without the unconscionable clause if that will avoid any unconscionable
(2) If it is claimed or appears to a court that a consumer credit agreement or any
part of it may be unconscionable, the parties shall be afforded a reasonable opportunity
to present evidence as to its setting, purpose, and effect to aid the court in making
(3) For the purposes of this section, a charge or practice expressly permitted by
this title is not in itself unconscionable.
(4) If the court as a matter of law finds a consumer credit agreement or any part
of the agreement to have been unconscionable, then in addition to the relief provided
for in Subsection (1), the party in violation of this section is liable and the debtor
may recover from it a penalty in an amount determined by the court of:
(a) not less than $100 nor more than $5,000; and
(b) the cost of the action together with a reasonable attorney's fee.
(5) The penalties provided for in Subsection (4) may not be imposed upon an assignee
of the creditor's rights in a consumer credit contract found as a matter of law to
be unconscionable in whole or in part unless the debtor establishes by a preponderance
of the evidence that the assignee knew the agreement was a consumer credit contract
at the time the assignment occurred and also knew of the facts or circumstances on
which the court based its finding of unconscionability.
(6) No class action may be brought under this section except for injunctive or declaratory
(7) Nothing contained in Subsection (6) prevents the recovery of penalties by a debtor
as provided in Subsection (4).
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
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