70C-7-201 - Effect of violations by creditors -- Penalties -- Debtor's rights. - Utah Statutes

70C-7-201. Effect of violations by creditors -- Penalties -- Debtor's rights.
(1) A debtor is not obligated to pay a charge in excess of that allowed by this title, and ifhe has paid an excess charge he has a right to a refund. A refund may be made in whole or in partby reducing the debtor's obligation by the amount of the excess charge. If the debtor has paid anamount in excess of the lawful obligation under the agreement, the debtor may recover the excessamount from the party who made the excess charge or from an assignee of the creditor's rightswho undertakes direct collection of payments from or enforcement of rights against the debtorwith respect to the debt.
(2) If a debtor is entitled to a refund and a party liable to the debtor in bad faith refuses tomake a refund within a reasonable time after demand, the debtor may recover from that party apenalty in an amount to be determined by a court not exceeding the greater of either the amountof the finance charge or 10 times the amount of the excess charge. If the creditor has made anexcess charge in deliberate violation of or in reckless disregard for this title, the penalty may berecovered even though the creditor has refunded the excess charge.

Enacted by Chapter 159, 1985 General Session