H.B. 194 Enrolled

CONSUMER CREDIT ISSUES
1999 GENERAL SESSION
STATE OF UTAH
Sponsor: Wayne A. Harper
AN ACT RELATING TO CONSUMER CREDIT; REQUIRING COORDINATION AND
REPORTING ON CONSUMER EDUCATION PROGRAMS; ADDRESSING
ENFORCEMENT; AND MAKING TECHNICAL CORRECTIONS.
This act affects sections of Utah Code Annotated 1953 as follows:
AMENDS:
70C-8-102, as enacted by Chapter 159, Laws of Utah 1985
ENACTS:
70C-8-107, Utah Code Annotated 1953
Be it enacted by the Legislature of the state of Utah:
Section 1. Section 70C-8-102 is amended to read:
70C-8-102. Powers of department -- Conformity with federal law -- Reliance on rules
-- Consumer education.
(1) In addition to other powers granted by this title, the department, within the limitations
provided by law, may:
(a) receive and act on complaints, take action designed to obtain voluntary compliance
with this title, or commence administrative or judicial proceedings on its own initiative;
(b) counsel persons and groups on their rights and duties under this title;
(c) establish programs for the education of consumers with respect to credit practices and
problems;
(d) make studies appropriate to effectuate the purposes and policies of this title and make
the results available to the public;
(e) adopt, amend, and repeal rules to supplement, interpret, or carry out the provisions of
this title;
(f) maintain offices within this state; and
(g) employ any necessary hearing examiners, clerks, and other employees and agents.

(2) The department may adopt rules that supersede any provisions of this title [which] that
are or come into conflict with the Federal Credit Protection Act or its implementing Regulation Z
if the department:
(a) finds such a conflict to exist; and
(b) declares that the purpose of superseding this title is to resolve that conflict.
(3) Except for refund of an excess charge, no liability is imposed under this title for an act
done or omitted in conformity with the rule of the department, notwithstanding that after the act or
omission the rule may be amended or repealed or be determined by judicial or other competent
authority to be invalid for any reason.
(4) [No] A rule or any part of a rule adopted by the department under this title may not be
determined by any judicial or other authority to be invalid in whole or in part unless such judicial
or other authority expressly finds that the rule or part of the rule is arbitrary, capricious, and
constitutes an abuse of discretion, or exceeds the authority granted to the department by this title, or
is otherwise unlawful.
(5) The department shall coordinate with representatives of education, government, and the
financial services industry and assist in the preparation of an initiative to develop, implement, and
monitor a financial services education curriculum that is:
(a) to be made available to the public; and
(b) appropriate for use in the public schools.
(6) Beginning in 1999, the department shall report biennially by no later than November 30
to the Business, Labor, and Economic Development Interim Committee regarding:
(a) the need for consumer education programs administered by the department to promote
prudent and beneficial use of credit by consumers; and
(b) department efforts to promote the education of consumers with respect to credit practices
and problems, including:
(i) its efforts to coordinate, encourage, and assist public and private persons in developing
and operating voluntary educational and debt counseling programs; and
(ii) its activities under Subsection (5).

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Section 2. Section 70C-8-107 is enacted to read:
70C-8-107. Temporary or injunctive relief against unconscionable and fraudulent
conduct.
(1) The department may bring a civil action to enjoin a person subject to this title from:
(a) making or enforcing a term of consumer credit transactions that is unconscionable;
(b) engaging in fraudulent conduct in inducing consumers to enter into a consumer credit
transaction; or
(c) engaging in conduct of the type specified in Subsection (1)(a) or (b) with respect to a
transaction that gives rise to or leads a person to believe will give rise to a consumer credit
transaction.
(2) An action brought pursuant to this section is subject to the requirements of Utah Rules
of Civil Procedure, Rule 65A.

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