Unconscionability

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§4-106. Unconscionability

1.  In applying the provisions of this Act on unconscionability, sections 5-108 and 6-111, to a separate charge for insurance, consideration shall be given, among other factors, to:  

A. Potential benefits to the consumer including the satisfaction of his obligations;   [PL 1973, c. 762, §1 (NEW).]

B. The creditor's need for the protection provided by the insurance; and   [PL 1973, c. 762, §1 (NEW).]

C. The relation between the amount and terms of credit granted and the insurance benefits provided.   [PL 1973, c. 762, §1 (NEW).]

[PL 1973, c. 762, §1 (NEW).]

2.  If consumer credit insurance otherwise complies with Parts 1, 2 and 3 of this Article and other applicable law, neither the amount nor the term of the insurance nor the amount of a charge therefor is in and of itself unconscionable in the absence of other practices and circumstances.  

[PL 1997, c. 315, §3 (AMD).]

SECTION HISTORY

PL 1973, c. 762, §1 (NEW). PL 1997, c. 315, §3 (AMD).


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