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H.B. 194

             1     

CONSUMER CREDIT ISSUES

             2     
1999 GENERAL SESSION

             3     
STATE OF UTAH

             4     
Sponsor: Wayne A. Harper

             5      AN ACT RELATING TO CONSUMER CREDIT; REQUIRING REPORTING ON CONSUMER
             6      EDUCATION PROGRAMS; ADDRESSING ENFORCEMENT; AND MAKING
             7      TECHNICAL CORRECTIONS.
             8      This act affects sections of Utah Code Annotated 1953 as follows:
             9      AMENDS:
             10          70C-8-102, as enacted by Chapter 159, Laws of Utah 1985
             11      ENACTS:
             12          70C-8-107, Utah Code Annotated 1953
             13      Be it enacted by the Legislature of the state of Utah:
             14          Section 1. Section 70C-8-102 is amended to read:
             15           70C-8-102. Powers of department -- Conformity with federal law -- Reliance on rules
             16      -- Consumer education.
             17          (1) In addition to other powers granted by this title, the department, within the limitations
             18      provided by law, may:
             19          (a) receive and act on complaints, take action designed to obtain voluntary compliance
             20      with this title, or commence administrative or judicial proceedings on its own initiative;
             21          (b) counsel persons and groups on their rights and duties under this title;
             22          (c) establish programs for the education of consumers with respect to credit practices and
             23      problems;
             24          (d) make studies appropriate to effectuate the purposes and policies of this title and make
             25      the results available to the public;
             26          (e) adopt, amend, and repeal rules to supplement, interpret, or carry out the provisions of
             27      this title;


             28          (f) maintain offices within this state; and
             29          (g) employ any necessary hearing examiners, clerks, and other employees and agents.
             30          (2) The department may adopt rules that supersede any provisions of this title [which] that
             31      are or come into conflict with the Federal Credit Protection Act or its implementing Regulation
             32      Z if the department:
             33          (a) finds such a conflict to exist; and
             34          (b) declares that the purpose of superseding this title is to resolve that conflict.
             35          (3) Except for refund of an excess charge, no liability is imposed under this title for an act
             36      done or omitted in conformity with the rule of the department, notwithstanding that after the act
             37      or omission the rule may be amended or repealed or be determined by judicial or other competent
             38      authority to be invalid for any reason.
             39          (4) [No] A rule or any part of a rule adopted by the department under this title may not be
             40      determined by any judicial or other authority to be invalid in whole or in part unless such judicial
             41      or other authority expressly finds that the rule or part of the rule is arbitrary, capricious, and
             42      constitutes an abuse of discretion, or exceeds the authority granted to the department by this title,
             43      or is otherwise unlawful.
             44          (5) The department shall coordinate with representatives of education, government, and
             45      the financial services industry and assist in the preparation of an initiative to develop, implement,
             46      and monitor a financial services education curriculum that is:
             47          (a) to be made available to the public; and
             48          (b) appropriate for use in the public schools.
             49          (6) Beginning in 1999, the department shall report biennially by no later than November
             50      30 to the Business, Labor, and Economic Development Interim Committee regarding:
             51          (a) the need for consumer education programs administered by the department to promote
             52      prudent and beneficial use of credit by consumers; and
             53          (b) department efforts to promote the education of consumers with respect to credit
             54      practices and problems, including:
             55          (i) its efforts to coordinate, encourage, and assist public and private persons in developing
             56      and operating voluntary educational and debt counseling programs; and
             57          (ii) its activities under Subsection (5).
             58          Section 3. Section 70C-8-107 is enacted to read:


             59          70C-8-107. Temporary or injunctive relief against unconscionable and fraudulent
             60      conduct.
             61          (1) The department may bring a civil action to enjoin a person subject to this title from:
             62          (a) making or enforcing a term of consumer credit transactions that is unconscionable;
             63          (b) engaging in fraudulent conduct in inducing consumers to enter into a consumer credit
             64      transaction; or
             65          (c) engaging in conduct of the type specified in Subsection (1)(a) or (b) with respect to a
             66      transaction that gives rise to or leads a person to believe will give rise to a consumer credit
             67      transaction.
             68          (2) An action brought pursuant to this section is subject to the requirements of Utah Rules
             69      of Civil Procedure, Rule 65A.




Legislative Review Note
    as of 11-24-98 2:30 PM


A limited legal review of this legislation raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel


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