Waiver - agreement to forego rights - settlement of claims.

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(1) Except as otherwise provided in this code, a consumer may not waive or agree to forego rights or benefits under this code.

  1. A claim by a consumer against a creditor for an excess charge, other violation of thiscode, or civil penalty, or a claim against a consumer for default or breach of a duty imposed by this code, if disputed in good faith, may be settled by agreement.

  2. A claim, whether or not disputed, against a consumer, may be settled for less valuethan the amount claimed.

  3. A settlement in which the consumer waives or agrees to forego rights or benefitsunder this code is invalid if the court as a matter of law finds the settlement to have been unconscionable at the time it was made. The competence of the consumer, any deception or coercion practiced upon the consumer, the nature and extent of the legal advice received by the consumer, and the value of the consideration are relevant to the issue of unconscionability.

Source: L. 2000: Entire article R&RE, p. 1179, § 1, effective July 1.

Editor's note: This section is similar to former § 5-1-107, as it existed prior to 2000.


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