PRIOR PRINTER'S NO. 175 PRINTER'S NO. 1732
No. 170 Session of 1975
INTRODUCED BY MESSRS. SCHMITT, ZEARFOSS, MANDERINO, RENNINGER,
MRS. GILLETTE, MESSRS. A. K. HUTCHINSON, BRUNNER, MRS. TOLL,
MESSRS. SHANE, VANN, TAYLOR, ROMANELLI, LAUGHLIN, COHEN,
TRELLO, ROSS, ABRAHAM, DeMEDIO, RAPPAPORT, SCHWEDER, IRVIS,
WOJDAK, DOMBROWSKI, GREENFIELD, MORRIS, BERLIN, PIEVSKY,
MUSTO, SHUPNIK, GREEN, PERRY, REED, STAPLETON, FEE, MENHORN,
KOWALYSHYN, ZORD, WARGO, RUGGIERO, WALSH, O'DONNELL, AND
MRKONIC, JANUARY 28, 1975
AS REPORTED FROM COMMITTEE ON CONSUMER PROTECTION, HOUSE OF
REPRESENTATIVES, AS AMENDED, JUNE 16, 1975
AN ACT
1 Relating to consumer credit sales and repealing inconsistent <--
2 provisions of the Goods and Services Installment Sales Act
3 and the Home Improvement Finance Act.
4 RELATING TO CONSUMER TRANSACTIONS, INCLUDING CREDIT SALES, <--
5 CONSUMER LEASES, RELATED DIRECT CONSUMER LOANS, AND ADVANCES
6 MADE TO CREDIT CARD USERS, REGULATING CONTRACT PROVISIONS,
7 THE TERMINATION OF CONSUMER DEFENSES, THE DISCLAIMER OF
8 WARRANTIES, AND THE ENTRY OF JUDGMENTS BY CONFESSION,
9 PROVIDING ADDITIONAL EXEMPTIONS FROM EXECUTION IN ACTIONS ON
10 CONSUMER TRANSACTIONS, PROHIBITING WAIVERS OF EXEMPTIONS,
11 IMPOSING DUTIES ON THE ATTORNEY GENERAL AND ON
12 PROTHONOTARIES, AND REPEALING INCONSISTENT PROVISIONS OF THE
13 GOODS AND SERVICES INSTALLMENT SALES ACT, THE HOME
14 IMPROVEMENT FINANCE ACT, THE MOTOR VEHICLE SALES FINANCE ACT
15 AND OTHER INCONSISTENT LAWS.
16 The General Assembly of the Commonwealth of Pennsylvania
17 hereby enacts as follows:
18 Section 1. As used in this act: <--
19 "Consumer credit sale" means the sale of goods or services as
20 defined in this section.
21 "Goods" means tangible chattels bought for use primarily for
1 personal, family, or household purposes, including certificates
2 or coupons exchangeable for such goods and all chattels personal
3 which are furnished or used in the modernization,
4 rehabilitation, repair, alteration or improvement of real
5 property, including carpeting, but does not include motor
6 vehicles or the construction of new homes.
7 "Home improvement installment contract" or "contract" means
8 an agreement covering a home improvement installment sale,
9 whether contained in one or more documents, together with any
10 accompanying check or bank draft as evidence of indebtedness, to
11 be performed in this Commonwealth pursuant to which the buyer
12 promises to pay in installments all or any part of the time sale
13 price or prices of goods and services, or services.
14 (1) The meaning of the term does not include such an
15 agreement, if
16 (i) it pertains to real property used for a commercial or
17 business purpose;
18 (ii) it covers the sale of goods by a person who neither
19 directly or indirectly performs or arranges to perform any
20 services in connection with the installation of or application
21 of the goods;
22 (iii) it covers only an appliance designed to be
23 freestanding and not built into and permanently affixed as an
24 integral part of the structure such as a stove, freezer,
25 refrigerator, air conditioner, other than one connected with a
26 central heating system, hot water heater and the like;
27 (iv) it covers the sale of goods and the furnishing of
28 services or the furnishing of services thereunder for a cash
29 price stated therein of $300 or less;
30 (v) the loan is contracted for or obtained directly by the
19750H0170B1732 - 2 -
1 retail buyer from the lending institution, person or
2 corporation; or
3 (vi) the loan is insured, or a written commitment to insure
4 it has been issued, pursuant to National housing legislation.
5 (2) The term does not include
6 (i) real property used for commercial or business purposes;
7 (ii) sale of goods by a person who neither directly or
8 indirectly performs or arranges to perform any services in
9 connection with installation of or appliance of goods;
10 (iii) a free appliance not considered an integral part of
11 the real estate;
12 (iv) loan is contracted for or obtained directly by the
13 retail buyer from the lending institution; or
14 (v) the loan is insured pursuant to Federal housing
15 legislation.
16 "Home improvement installment sale" or "sale" means the sale
17 of goods and furnishing of services or the furnishing of
18 services by a contractor to a retail buyer pursuant to a home
19 improvement installment contract wherein the cash price is
20 stated to be in excess of $300.
21 "Motor vehicle" means any self-propelled device in which,
22 upon which, or by which any person or property is or may be
23 transported or drawn upon a public highway, excepting tractors,
24 power shovels, road machinery, agricultural machinery and other
25 machinery not designed primarily for highway transportation, but
26 which may incidently transport persons or property on a public
27 highway, and excepting such devices which move upon or are
28 guided by a track or travel through the air and shall include
29 trailers and semi-trailers.
30 "Services" means work, labor and services for other than a
19750H0170B1732 - 3 -
1 commercial or business use, including services furnished in
2 connection with the sale or repair of goods or furnished in
3 connection with the repair of motor vehicles or work, labor and
4 services furnished in connection with the installation or
5 application of goods in the modernization, rehabilitation,
6 repair, alteration or improvement of real property, but does not
7 include a motor vehicle, the construction of new homes or
8 services for which the tariffs, rates, charges, costs or
9 expenses, including in each instance the time sale price, is
10 required by law to be filed with or approved by the Commonwealth
11 or Federal Government or any official department, commission, or
12 agency of the Commonwealth of Pennsylvania or the United States.
13 Section 2. In a consumer credit sale, the seller shall not
14 take a negotiable instrument other than a check or bank draft as
15 evidence of the obligation of the buyer. Any note in a consumer
16 credit sale shall contain the words "Consumer Note - Not
17 Negotiable" clearly and conspicuously printed on its face.
18 Section 3. No contract or obligation relating to a consumer
19 credit sale shall contain any provision nor shall any provisions
20 be effective by which:
21 (1) The buyer agrees not to assert against a seller or an
22 assignee any claim or defense arising out of the transaction.
23 (2) In the absence of the buyer's default, the seller or
24 assignee may arbitrarily and without reasonable cause,
25 accelerate the maturity of any part or all of the amount owing
26 thereunder, without giving the buyer 14 days' notice prior to
27 acceleration or without giving the buyer the right to cure a
28 default for 14 days after mailing of the notice, by tendering
29 the amount of all unpaid installments due at the time of tender
30 plus any unpaid delinquency charges, or by tendering any
19750H0170B1732 - 4 -
1 performance necessary to cure default other than nonpayment of
2 installments, and without the buyer being restored to all his
3 rights after curing of the default, as though no default has
4 occurred. For the purposes of this act "default" is defined only
5 as the nonpayment of one or more installments, or unauthorized
6 disposition of collateral, or failure to procure or maintain in
7 effect any insurance required under the terms of the contract.
8 (3) The buyer with a gross annual income of less than
9 $10,000 authorizes a judgment by confession in any court,
10 whether by power of attorney or other authorization, taken after
11 the effective date of this act, which shall serve as the basis
12 for a levy or execution until the plaintiff files a complaint
13 averring default and proceeds as in original proceedings in
14 assumpsit. The judgment by confession shall be changed as may be
15 appropriate by a judgment, order or decree on the proceedings
16 based on the complaint; but, the priority of any lien on the
17 confession of judgment shall not be affected thereby. The
18 parties to the action shall have the same rights as parties to
19 other original proceedings in assumpsit. Hereafter, when any
20 plaintiff has received satisfaction for any judgment entered by
21 confession, he shall order the record in the proceeding marked
22 satisfied within 30 days of the receipt thereof, and shall not
23 require any action on the part of the defendant or any payment
24 by him to cover the cost of satisfying the judgment. Any such
25 judgment not revived within 1 year from the date on which the
26 lien of said judgment has lapsed by operation of law shall be
27 considered satisfied and may not thereafter be revived.
28 (4) The seller or assignee of the contract or obligation or
29 a person acting on his behalf is given authority to enter upon
30 the buyer's premises to commit any breach of the peace in the
19750H0170B1732 - 5 -
1 enforcement of the terms of the obligation.
2 (5) The buyer waives any right of action against the seller
3 or assignee of the contract or obligation, or any other person
4 acting on his behalf, for any breach of the peace committed in
5 the enforcement of the terms of the obligation.
6 (6) The buyer relieves the seller or assignee from any
7 liability for any legal remedy which the buyer may have against
8 the seller or assignee under the contract or obligation or any
9 separate instrument executed in connection therewith.
10 (7) The buyer agrees to the payment of any charge by reason
11 of the exercise of his right to rescind or avoid the contract.
12 (8) The seller or assignee is given the right to commence an
13 action on a contract under provisions of this act in a county
14 other than the county in which the contract was in fact signed
15 by the buyer, the county in which the buyer resides at the
16 commencement of the action, the county in which the buyer
17 resided at the time that the contract was entered into, or in
18 the county in which the goods purchased pursuant to such
19 contract may have been so affixed to real property as to become
20 a part of such real property.
21 (9) The buyer waives his right to a statutory exemption.
22 Section 4. (a) Any assignee of the contract or obligation
23 relating to a consumer credit sale shall be subject to all
24 claims and defenses of the consumer against the seller arising
25 from the sale, notwithstanding any agreement to the contrary:
26 Provided, however, That the assignee's liability under this
27 section shall not exceed the amount owing to the assignee at the
28 time the assignee has notice of the claim or defense.
29 (b) For purposes of this act, "assignee" means any holder of
30 a consumer credit obligation, or the seller, or, in the case of
19750H0170B1732 - 6 -
1 a transaction pursuant to a credit card or similar device, the
2 issuer of that credit card, whether or not the issuer is the
3 seller. An assignee also includes a person who regularly makes
4 loans and who participates in or is connected with a sale. Mere
5 knowledge that a loan will be used for a consumer purchase does
6 not, without some other participation or connection, make the
7 lender an assignee.
8 (c) Without limiting the scope of the inquiry pursuant to
9 this section regarding the knowledge or reason to know of the
10 lender, the lender will be deemed to have knowledge that the
11 proceeds of a loan will be used in a consumer sale when:
12 (1) The lender is a person related to the seller.
13 (2) The lender supplies to the seller or the seller prepares
14 documents used to evidence the loan obligations of the consumer.
15 (3) The lender has recourse to the seller for nonpayment of
16 the loan through guaranty, reserve account or otherwise.
17 (4) The lender directly or indirectly pays to the seller any
18 commission, fee or other consideration based upon the assistance
19 or cooperation of the seller in the obtaining of the loan.
20 (5) The lender makes payment of the proceeds of the loan to
21 the seller either individually or jointly with the consumer.
22 (6) The lender conditions the extension of credit upon the
23 purchase of goods or services from the seller.
24 (7) The lender knew or should have known that the loan was
25 arranged by the seller or a person acting on behalf of the
26 seller.
27 (8) The lender and seller participate in any arrangement,
28 formal or otherwise, in which the seller refers consumers to the
29 lender.
30 (9) The lender permits the reference to his services to be
19750H0170B1732 - 7 -
1 used by the seller in connection with the consumer sales.
2 (10) The lender takes a security interest in the property
3 which is the subject of the consumer sale.
4 (11) The lender otherwise participates in or is connected
5 with the consumer sale.
6 Section 5. Any party aggrieved by a violation of any of the
7 provisions of this act may, in a civil suit, collect damages of
8 double the finance charge, but not less than $100 nor more than
9 $1,0000, plus reasonable attorney's fees, for each violation.
10 Section 6. (a) The following parts of acts are repealed
11 absolutely:
12 (1) Section 208, act of August 14, 1963 (P.L.1082, No.464),
13 known as the "Home Improvement Finance Act."
14 (2) Section 402, act of October 28, 1966 (1st Spec.Sess.,
15 P.L.55, No.7), known as the "Goods and Services Installment
16 Sales Act."
17 (b) All acts and part of acts are repealed in so far as they
18 are inconsistent herewith.
19 Section 7. This act shall take effect within 180 days after
20 final enactment.
21 SECTION 1. SHORT TITLE.--THIS ACT SHALL BE KNOWN AND MAY BE <--
22 CITED AS THE "CONSUMER TRANSACTIONS ACT."
23 SECTION 2. DEFINITIONS.--THE FOLLOWING WORDS AND PHRASES
24 WHEN USED IN THIS ACT SHALL HAVE, UNLESS THE CONTEXT CLEARLY
25 INDICATES OTHERWISE, THE MEANINGS GIVEN TO THEM IN THIS SECTION:
26 "CONSUMER." AN INDIVIDUAL BUYING, BORROWING, OR LEASING
27 GOODS OR SERVICES ACQUIRED PRIMARILY FOR PERSONAL, FAMILY OR
28 HOUSEHOLD USE.
29 "CONSUMER GOODS." GOODS USED, LEASED OR BOUGHT FOR USE
30 PRIMARILY FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES, WHETHER
19750H0170B1732 - 8 -
1 ACQUIRED IN CASH OR A CREDIT TRANSACTION.
2 "CONSUMER SERVICES." WORK, LABOR OR SERVICES FURNISHED
3 PRIMARILY FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES. AND
4 INCLUDES SERVICES FURNISHED IN CONNECTION WITH THE SALE OR
5 REPAIR OF GOODS, THE REPAIR OR SERVICING OF MOTOR VEHICLES, OR
6 THE INSTALLATION OR APPLICATION OF GOODS IN THE MODERNIZATION,
7 REHABILITATION, REPAIR ALTERATION, IMPROVEMENT OR RECONSTRUCTION
8 OF REAL PROPERTY, WHETHER THE GOODS BECOME FIXTURES OR BECOME
9 REAL PROPERTY.
10 "DEFAULT." NOTWITHSTANDING ANY OTHER DEFINITION IN THE
11 CONTRACT OR AGREEMENT OF THE PARTIES, ONLY THE NONPAYMENT OF ONE
12 OR MORE INSTALLMENTS, AN UNAUTHORIZED VOLUNTARY OR INVOLUNTARY
13 DISPOSITION OF THE COLLATERAL INCREASING THE SECURED PARTY'S
14 RISK OF NONPAYMENT, A FAILURE TO REPAIR SIGNIFICANT DAMAGE TO
15 THE COLLATERAL, A FAILURE TO PROCURE OR MAINTAIN IN EFFECT ANY
16 INSURANCE REQUIRED UNDER THE TERMS OF THE CONTRACT OR AGREEMENT
17 OR THE COMMISSION OF ANY OTHER ACT SPECIFIED IN THE AGREEMENT
18 WHICH REASONABLY IMPAIRS THE PROSPECT OF PAYMENT OR PERFORMANCE.
19 "HOUSEHOLD." INCLUDES ALL PERSONS WHO MAY REASONABLY BE
20 EXPECTED TO USE, CONSUME, OR BE AFFECTED BY THE CONSUMER GOODS
21 OR SERVICES IN QUESTION.
22 "SUPPLYING CONSUMER GOODS OR SERVICES." SELLING, LEASING,
23 ASSIGNING OR AWARDING BY CHANCE OR BY ANY OTHER MEANS, CONSUMER
24 GOODS OR SERVICES AND INCLUDES ANY SOLICITATION BY A SUPPLIER
25 WITH RESPECT TO ANY OF THESE MEANS OF SUPPLYING CONSUMER GOODS
26 OR SERVICES.
27 SECTION 3. LIMITATION ON WARRANTY DISCLAIMERS AND LIMITATION
28 OF DAMAGES FOR BREACH IN SUPPLYING OR MANUFACTURING GOODS
29 BECOMING CONSUMER GOODS.--(A) NO PERSON SUPPLYING OR
30 MANUFACTURING CONSUMER GOODS SHALL LIMIT OR DISCLAIM ANY IMPLIED
19750H0170B1732 - 9 -
1 WARRANTIES OF MERCHANTABILITY OR OF FITNESS FOR A PARTICULAR
2 PURPOSE, OR LIMIT DAMAGES FOR PERSONAL INJURIES ARISING OUT OF A
3 BREACH OF WARRANTY. THE USE OF ANY CONTRACT PROVISION PURPORTING
4 TO DO SO SHALL CONSTITUTE A VIOLATION OF THIS ACT.
5 (B) ANY LIMITATION OF DAMAGES FOR BREACH OF ANY WARRANTY
6 EXPRESS OR IMPLIED TO THE REPAIR OR REPLACEMENT AND INSTALLATION
7 OF DEFECTIVE PARTS OR MERCHANDISE SHALL NOT BE EFFECTIVE UNLESS
8 THE PERSON SUPPLYING THE CONSUMER GOODS OR THE MANUFACTURER
9 MAKING THE WARRANTY MAINTAINS PLACES OF BUSINESS WITHIN THIS
10 STATE OR WITHIN 100 MILES OF THE POINT OF SALE, WHICHEVER IS
11 CLOSER TO THE POINT OF SALE, THROUGH WHICH WARRANTY SERVICE IS
12 EFFECTED WITHIN A REASONABLE PERIOD OF TIME AFTER REQUEST
13 THEREFOR BY THE CONSUMER. IN ANY EVENT SUCH LIMITATION SHALL NOT
14 BE EFFECTIVE AFTER THE SECOND ATTEMPT BY THE SELLER OR
15 MANUFACTURER TO CURE THE SAME DEFECT; AND AFTER SUCH SECOND
16 ATTEMPT FAILS, THE CONSUMER SHALL BE ENTITLED TO RESORT TO ALL
17 REMEDIES PROVIDED BY LAW, INCLUDING THE RIGHT TO REVOKE
18 ACCEPTANCE AND RECOVER ALL PAYMENTS THERETOFOR MADE, LESS THE
19 REASONABLE VALUE TO THE CONSUMER OF THE ACTUAL USE MADE OF THE
20 CONSUMER GOODS. THE CONSUMER'S RECOVERY SHALL INCLUDE
21 REIMBURSEMENT OF ANY EXTRA EXPENSES ACTUALLY INCURRED FOR
22 SUBSTITUTE GOODS OR SERVICES WHILE THE CONSUMER GOODS WERE HELD
23 FOR REPAIR, IF SUCH HOLDING WAS FOR MORE THAN 10 DAYS AT ANY ONE
24 TIME.
25 (C) SUBSECTIONS (A) AND (B) OF THIS SECTION SHALL NOT BE
26 CONSTRUED TO ABROGATE THE RIGHT TO SUPPLY PREVIOUSLY USED
27 CONSUMER GOODS ON AN "AS IS" OR "WITH ALL FAULTS" BASIS,
28 PROVIDED, HOWEVER, THAT THE CONTRACT OF SALE OR OTHER DOCUMENT
29 EVIDENCING THE TRANSACTION SHALL CONTAIN THE FOLLOWING NOTICE,
30 PRINTED PROMINENTLY AND IN THE FORM BELOW IN TWELVE (12) POINT
19750H0170B1732 - 10 -
1 EXTRA BOLD TYPE, OR LARGER, DIRECTLY ABOVE OR BESIDE THE SPACE
2 PROVIDED FOR THE BUYER'S SIGNATURE OR THE BOTTOM OF THE
3 DOCUMENT:
4 NOTICE TO BUYER
5 THE GOOD YOU ARE BUYING ARE SOLD TO YOU "AS IS"
6 OR "WITH ALL FAULTS." THIS MEANS THAT NO WARRANTY
7 OR GUARANTEE IS GIVEN AND THAT YOU MUST BEAR THE
8 FULL RISK THAT THESE GOODS MIGHT BE DEFECTIVE.
9 EXERCISE CAUTION BEFORE BUYING!
10 (D) NO DISCLAIMER OF WARRRANTIES OR LIMITATION OF REMEDIES
11 OR OF DAMAGES FOR BREACH OF WARRANTY, INCLUDING THE USE OF SUCH
12 WORDS AS "AS IS" OR "WITH ALL FAULTS," SHALL BE EFFECTIVE AS
13 AGAINST THE PERSON SUPPLYING OR MANUFACTURING THE GOODS UNLESS
14 THE CONTRACT OR AGREEMENT DISCLOSES, IN A CONSPICUOUS PLACE ON
15 THE WARRANTY, IN A MANNER COMPREHENSIBLE TO THE AVERAGE CONSUMER
16 SERVED BY SUCH PERSON THE EXTENT TO WHICH HIS LEGAL RIGHTS
17 OTHERWISE INHERENT IN THE CONTRACT ARE IMPAIRED BY HIS EXECUTION
18 OF THE AGREEMENT OR CONTRACT.
19 SECTION 4. PROHIBITED CONTRACT TERMS.--(A) NO PERSON
20 SUPPLYING CONSUMER GOODS OR SERVICES SHALL USE ANY FORM OF
21 CONTRACT OR AGREEMENT CONTAINING ANY CLAUSE OR TERM WHEREBY:
22 (1) THE CONSUMER AGREES NOT TO ASSERT AGAINST THE PERSON
23 SUPPLYING THE GOODS OR SERVICES OR ANY ASSIGNEE OR TRANSFEREE OF
24 THE CONSUMER'S CONTRACT OR AGREEMENT ANY CLAIM OR DEFENSE
25 ARISING OUT OF THE CONSUMER TRANSACTION.
26 (2) THE PERSON SUPPLYING THE GOODS OR SERVICES, ANY
27 ASSIGNEE, OR ANY PERSON ACTING ON BEHALF OF EITHER IS GIVEN
28 AUTHORITY TO ENTER UPON THE CONSUMER'S PREMISES OR COMMIT A
29 BREACH OF THE PEACE IN THE ENFORCEMENT OF THE TERMS OF THE
30 AGREEMENT OR CONTRACT; BUT THIS SUBDIVISION SHALL NOT PROHIBIT
19750H0170B1732 - 11 -
1 PEACEABLE ENTRY UPON THE PREMISES WITH THE CONSENT OF THE
2 CONSUMER GIVEN AFTER DEFAULT.
3 (3) THE CONSUMER WAIVES ANY RIGHT OF ACTION AGAINST THE
4 PERSON SUPPLYING THE GOODS OR SERVICES, ANY ASSIGNEE, OR ANY
5 PERSON ACTING ON BEHALF OF EITHER, FOR ANY VIOLATION OF THIS ACT
6 OR ANY BREACH OF THE PEACE OR OTHER WRONGFUL ACT COMMITTED IN
7 THE ENFORCEMENT OF THE CONTRACT OR AGREEMENT; BUT THIS PROVISION
8 SHALL NOT PROHIBIT A RELEASE OF ANY ACCRUED CAUSE OF ACTION AS A
9 PART OF A BONA FIDE SETTLEMENT OF A DISPUTE.
10 (4) THE PERSON SUPPLYING THE GOODS OR SERVICES, ANY ASSIGNEE
11 OR ANY PERSON ACTING ON BEHALF OF EITHER IS GIVEN THE RIGHT TO
12 COMMENCE AN ACTION OR OTHER LEGAL PROCEEDING OR REQUIRE
13 ARBITRATION OF DISPUTES IN ANY FOREIGN STATE OR COUNTRY OR IN
14 ANY COUNTY OF THIS STATE OTHER THAN THE COUNTY IN WHICH THE
15 BUYER RESIDES AT THE COMMENCEMENT OF THE ACTION, OR, IF THE
16 BUYER NO LONGER RESIDES IN THIS STATE, IN THE COUNTY IN WHICH HE
17 RESIDED AT THE TIME THE CONTRACT OR AGREEMENT WAS ENTERED INTO,
18 OR, IF THE GOODS ARE AFFIXED TO OR SO AFFILIATED WITH REAL
19 PROPERTY AS TO BECOME FIXTURES, IN THE COUNTY IN WHICH THE REAL
20 PROPERTY IS LOCATED.
21 (5) ANY PROVISION WITH RESPECT TO REPAYMENTS OR SECURITY
22 PROHIBITED BY SECTION 12 OF THIS ACT.
23 (B) IT SHALL BE A VIOLATION OF THIS ACT FOR ANY PERSON
24 SUPPLYING CONSUMER GOODS OR SERVICES TO USE A FORM OF CONTRACT
25 CONTAINING ANY CLAUSE, PROVISION OR TERM PROHIBITED BY THIS ACT,
26 AND A SEPARATE AND ADDITIONAL VIOLATION TO REFER TO OR UTILIZE
27 ANY SUCH CLAUSE, TERM OR PROVISION IN ANY ATTEMPT TO EFFECT
28 COLLECTION FROM A CONSUMER OR A SETTLEMENT WITH A CONSUMER.
29 SECTION 5. CONTROL OF ACCELERATION CLAUSES.--(A) NO PERSON
30 SUPPLYING CONSUMER GOODS AND SERVICES SHALL USE ANY CONTRACT,
19750H0170B1732 - 12 -
1 AGREEMENT, NOTE OR OTHER INSTRUMENT IN A CONSUMER CREDIT
2 TRANSACTION WHICH PROVIDES FOR ACCELERATION OF THE ENTIRE UNPAID
3 INDEBTEDNESS OR ANY PORTION THEREOF IN ADVANCE OF THE STATED DUE
4 DATE UNLESS THE PROVISION FOR ACCELERATION IS EXPRESSED TO BE
5 OPERATIVE ONLY IF:
6 (1) THE PERSON SUPPLYING THE GOODS OR SERVICES, OR AN
7 ASSIGNEE, SHALL HAVE FIRST GIVEN THE CONSUMER 14 DAYS PRIOR
8 NOTICE OF THE INTENT TO ACCELERATE, OF THE GROUNDS ON WHICH THE
9 ACCELERATION IS BASED, AND OF THE CONSEQUENCE OF DEFAULT IN A
10 CONSPICUOUS PLACE AND IN THE FOLLOWING FORM ON THE NOTICE AND
11 SERVED BY SUCH PERSON; AND
12 IMPORTANT NOTICE REQUIRED BY LAW
13 NOTICE OF INTENTION
14 TO ACCELERATE
15 THE MATURITY OF OBLIGATION,
16 COMMENCE LEGAL ACTION AND/OR REPOSSESS
17 YOU HAVE DEFAULTED ON YOUR OBLIGATION, DESCRIBED AS FOLLOWS:
18 TRANSACTION NO.
19 DATE OF CONTRACT
20 CONTRACT SECURED BY THE FOLLOWING GOODS YOU PURCHASED
21 (SPECIFY)
22 CONTRACT SECURED BY THE FOLLOWING COLLATERAL
23 A. _____YOU HAVE VIOLATED THE FOLLOWING TERMS OF YOUR CONTRACT:
24 (DESCRIPTION, USING ORIGINAL CONTRACT LANGUAGE)
25 B. _____YOU HAVE FAILED TO MAKE INSTALLMENT PAYMENTS ON:
26 (DATES)
27 A STATEMENT OF YOUR ACCOUNT IS AS FOLLOWS:
28 1. INITIAL AMOUNT - $ _____
29 2. PRESENT AMOUNT OWING (INITIAL AMOUNT MINUS
30 PAYMENTS YOU HAVE MADE) - $ _____
19750H0170B1732 - 13 -
1 3. LATE PAYMENTS IN THE TOTAL AMOUNT OF $_____ DUE AS
2 OF (DATE) - $ _____
3 4. CURRENT PAYMENT DUE AS OF (DATE) - $ _____
4 5. LATE CHARGES $ _____
5 6. ACTUAL COST OF SERVICE OF THIS NOTICE - $ _____
6 7. TOTAL AMOUNT OF PAYMENTS DUE (TOTAL OF 3, 4, 5
7 AND 6) - $ _____
8 YOU HAVE THE RIGHT TO BRING YOUR ACCOUNT UP TO DATE. IN ORDER
9 TO DO SO, YOU MUST DO THE FOLLOWING NOT LATER THAN (DATE),
10 WHICH IS NOT LESS THAN 14 DAYS FROM THE DATE YOU RECEIVE THIS
11 NOTICE:
12 C. _____(SPECIFY REQUIRED PERFORMANCE, AS DESCRIBED ABOVE)
13 D. _____(PAY THIS AMOUNT (TOTAL AMOUNTS OF PAYMENTS DUE UNDER
14 "7", ABOVE
15 IF YOU DO AS REQUIRED UNDER "C" AND "D" ABOVE, YOU MAY
16 CONTINUE TO KEEP YOUR CONTRACT IN EFFECT WITHOUT ANY ADDITIONAL
17 PENALTIES OR COSTS BEING IMPOSED.
18 SHOULD YOU FAIL TO DO SO BY THE SPECIFIED DATE, THE ENTIRE
19 PRESENT AMOUNT OWING YOUR CONTRACT WILL BECOME IMMEDIATELY DUE;
20 ANY GOODS BY WHICH THE CONTRACT IS SECURED AND/OR ANY COLLATERAL
21 GIVEN UNDER THAT CONTRACT MAY BE IMMEDIATELY, PEACEFULLY
22 REPOSSESSED AND LEGAL ACTION MAY BE BEGUN BEFORE OR AFTER
23 REPOSSESSION.
24 ANY OVERDUE INSTALLMENTS MAY BE PAID AT THE FOLLOWING:
25 ____________________________
26 (ADDRESS) (PHONE)
27 PAYMENT MUST BE MADE ONLY BY (SPECIFY: PERSONAL CHECK, MONEY
28 ORDER, OTHER).
29 (2) THE CONSUMER SHALL BE IN DEFAULT; AND EITHER
30 (3) THE CONSUMER HAS NOT, WITHIN THE 14-DAY PERIOD OF THE
19750H0170B1732 - 14 -
1 NOTICE, CURED THE DEFAULT OR GIVEN THE PERSON SENDING THE NOTICE
2 ADEQUATE ASSURANCES OF PAYMENT OR PERFORMANCE; OR
3 (4) THE DEFAULT IS THE THIRD DEFAULT OF THE CONSUMER DURING
4 THE TERM OF THE CONTRACT.
5 (B) UPON THE CURE OF ANY DEFAULT THE ACCELERATION SHALL
6 TERMINATE AND THE CONTRACT SHALL BE REINSTATED IN ACCORDANCE
7 WITH ITS ORIGINAL TERMS. CURE SHALL CONSIST OF THE ELIMINATION
8 OF THE GROUNDS FOR DEFAULT, INCLUDING THE PAYMENT OF ALL UNPAID
9 INSTALLMENTS FALLING DUE WITHOUT ACCELERATION IN ACCORDANCE WITH
10 THE CONTRACT BEFORE AND DURING THE PERIOD OF THE DEFAULT, AND
11 THE PAYMENT OF ANY LEGAL LATE CHARGES.
12 (C) NOTICES OF ACCELERATION IN THE FORM AS SET FORTH ABOVE
13 SHALL BE MAILED, CERTIFIED MAIL RETURN RECEIPT REQUESTED IN TIME
14 TO BE RECEIVED BY THE CONSUMER, IN CURRENT COURSE OF MAIL, OR
15 DELIVERED, NOT LESS THAN 14 DAYS BEFORE THE DATE AT WHICH THE
16 INDEBTEDNESS WILL BECOME DUE BY ACCELERATION. MAILING IN
17 ACCORDANCE WITH REASONABLE ESTIMATES OF TIME REQUIRED FOR
18 DELIVERY SHALL CONSTITUTE COMPLIANCE WITH THIS SECTION, BUT IF A
19 RETURN RECEIPT SHOWS A DELIVERY AT A DATE LESS THAN 14 DAYS FROM
20 THE DATE FIXED FOR ACCELERATION THE CONSUMER MAY EFFECT CURE
21 WITHIN 14 DAYS OF THE DATE OF THE RECEIPT SHOWN.
22 SECTION 6. ENTRY OF JUDGMENTS BY CONFESSION.--(A) A CONSUMER
23 CREDIT CONTRACT MAY PROVIDE FOR THE ENTRY OF A JUDGMENT BY
24 CONFESSION ON WARRANT OF ATTORNEY. BUT EVERY SUCH WARRANT SHALL
25 SPECIFY THAT THE JUDGMENT IS CONFESSED PURSUANT TO AND IS
26 SUBJECT TO THE PROVISIONS OF THIS ACT. THE PROTHONOTARY OF THE
27 COURT IN WHICH THE JUDGMENT IS ENTERED SHALL NOTE THE FACT THAT
28 THE JUDGMENT IS SUBJECT TO THE PROVISIONS OF THIS ACT IN THE
29 JUDGMENT ROLL AND IN THE DOCKET OF JUDGMENTS. IF THE JUDGMENT SO
30 CONFESSED IS NOT CONFESSED SUBJECT TO THE LIMITATION THAT THE
19750H0170B1732 - 15 -
1 LIEN OF THE JUDGMENT SHALL NOT BIND ANY REAL ESTATE WHICH IS
2 USED AS A PRINCIPAL RESIDENCE OF THE CONSUMER, THE PERSON
3 ENTERING THE JUDGMENT SHALL FURNISH THE PROTHONOTARY OF THE
4 COURT IN WHICH THE JUDGMENT IS TO BE ENTERED WITH EVIDENCE,
5 SATISFACTORY TO SUCH PROTHONOTARY, THAT THE ENTRY OF THE
6 JUDGMENT IS IN COMPLIANCE WITH SECTIONS 121, 122 AND 125 OF
7 TITLE I OF THE FEDERAL CONSUMER CREDIT PROTECTION ACT, (82 STAT.
8 152, ET SEQ.), AS AMENDED, AND OF THE RELEVANT PROVISIONS OF
9 THIS ACT. IN THE ABSENCE OF SUCH LIMITATION OR OF SUCH EVIDENCE
10 THE PROTHONOTARY SHALL NOT ENTER THE JUDGMENT.
11 (B) NO SUCH JUDGMENT SHALL SERVE AS THE BASIS FOR A LEVY OR
12 EXECUTION UNTIL THE PLAINTIFF FILES A COMPLAINT AVERRING AN
13 UNCURED DEFAULT AND PROCEEDS AS IN ORIGINAL PROCEEDINGS IN
14 ASSUMPSIT. IN THE PROCEEDINGS THE JUDGMENT SHALL BE AMENDED AS
15 MAY BE APPROPRIATE BY THE JUDGMENT OR ORDER ENTERED IN THE
16 PROCEEDINGS ON THE COMPLAINT, BUT THE LIEN OF THE JUDGMENT SHALL
17 DATE FROM THE DATE OF THE ENTRY OF THE JUDGMENT BY CONFESSION.
18 (C) NO SUCH JUDGMENT SHALL BE ENTERED IN ANY COURT OF THIS
19 COMMONWEALTH, OR ELSEWHERE, IF THE AMOUNT UNPAID IN THE CONSUMER
20 CREDIT TRANSACTION SHALL BE, AT THE TIME OF ENTRY, LESS THAN
21 $1,000.
22 (D) THE FEE FOR ENTERING A JUDGMENT BY CONFESSION UNDER THIS
23 ACT SHALL INCLUDE THE FEE FOR ENTERING A SATISFACTION THEREOF.
24 NO PART OF ALL SUCH FEES SHALL BE CHARGED TO OR PAID BY THE
25 CONSUMER.
26 (E) A FAILURE BY A JUDGMENT CREDITOR WHO HAS RECEIVED
27 SATISFACTION TO NOTIFY THE PROTHONOTARY THEREOF, WITHIN TEN DAYS
28 OF RECEIPT OF SATISFACTION SHALL CONSTITUTE A VIOLATION OF THIS
29 ACT.
30 (F) FOR THE PURPOSES OF THIS SECTION SATISFACTION OF A
19750H0170B1732 - 16 -
1 CONSUMER DEBT SHALL INCLUDE THE REDUCTION OF THE AMOUNT UNPAID
2 IN THE CONSUMER TRANSACTION TO A SUM LESS THAN $1,000.
3 SECTION 7. LIMITATION ON NEGOTIABLE INSTRUMENTS.--(A) NO
4 PERSON SUPPLYING CONSUMER GOODS OR SERVICES SHALL TAKE AS
5 EVIDENCE OF OR SECURITY FOR THE PERFORMANCE OF ANY OBLIGATION OF
6 THE CONSUMER ANY NEGOTIABLE INSTRUMENT OTHER THAN A CHECK OR
7 BANK DRAFT FOR CURRENT COLLECTION TAKEN IN CONDITIONAL PAYMENT
8 OF AN OBLIGATION PRESENTLY DUE.
9 (B) ANY PERSON SUPPLYING CONSUMER GOODS AND SERVICES AND
10 TAKING A WRITTEN INSTRUMENT FOR THE PAYMENT OF DEFERRED CONSUMER
11 OBLIGATIONS SHALL CONSPICUOUSLY MARK THE INSTRUMENT "CONSUMER
12 OBLIGATION - NOT NEGOTIABLE" IN CONSPICUOUS TYPE ON ITS FACE.
13 SECTION 8. RIGHTS OF ASSIGNEES OF CONSUMER CONTRACTS OR
14 AGREEMENTS.--(A) AN ASSIGNEE OF A PERSON SUPPLYING CONSUMER
15 GOODS AND SERVICES OR A TRANSFEREE OF A CONSUMER'S MONETARY
16 OBLIGATION INCURRED IN A CONSUMER TRANSACTION SHALL NOT BE
17 LIABLE TO THE CONSUMER IN RESPECT OF ANY CLAIM OR DEFENSE
18 AGAINST THE PERSON SUPPLYING THE CONSUMER GOODS OR SERVICES
19 BEYOND THE AMOUNT ORIGINALLY PAID BY SUCH ASSIGNEE OR TRANSFEREE
20 FOR THE OBLIGATION ASSIGNED OR TRANSFERRED.
21 (B) THIS SECTION SHALL NOT LIMIT THE RIGHT OF A CONSUMER TO
22 WITHHOLD PAYMENTS DUE IN RESPECT OF A CONSUMER TRANSACTION
23 PENDING SETTLEMENT OF A DISPUTED CLAIM OF WHICH NOTICE HAS BEEN
24 GIVEN.
25 SECTION 9. TRANSFEREES SUBJECT TO CONSUMER CLAIMS AND
26 DEFENSES.--(A) A TRANSFEREE OF A CONSUMER OBLIGATION ARISING OUT
27 OF A CONSUMER TRANSACTION SHALL BE SUBJECT TO ALL CLAIMS OR
28 DEFENSES OF THE CONSUMER WHICH ARE GOOD AGAINST THE PERSON
29 SUPPLYING THE CONSUMER GOODS AND SERVICES EXCEPT THAT:
30 (1) A TRANSFEREE SHALL NOT BE SUBJECT TO CLAIMS OR DEFENSES
19750H0170B1732 - 17 -
1 ARISING OUT OF OTHER TRANSACTIONS BETWEEN THE PARTIES WHICH
2 SHALL ACCRUE AFTER THE CONSUMER HAS BEEN NOTIFIED OF THE
3 TRANSFER; OR
4 (2) A TRANSFEREE OF A CHECK OR BANK DRAFT TAKEN FOR CURRENT
5 COLLECTION BY A PERSON SUPPLYING CONSUMER GOODS OR SERVICES MAY
6 BECOME A HOLDER IN DUE COURSE OF THE CHECK OR BANK DRAFT, BUT
7 THERE CAN BE NO HOLDER IN DUE COURSE OF ANY OTHER INSTRUMENT
8 TAKEN IN A CONSUMER TRANSACTION.
9 (B) THE LIABILITY UNDER THIS SECTION EXISTS WHETHER THE
10 TRANSFERRED OBLIGATION IS EVIDENCED BY A NEGOTIABLE INSTRUMENT,
11 WHETHER THE CONTRACT OR AGREEMENT CONTAINS A CLAUSE WAIVING
12 DEFENSES AGAINST AN ASSIGNEE, WHETHER THE PERSON SUPPLYING GOODS
13 AND SERVICES HAS MARKED ANY NEGOTIABLE INSTRUMENT AS REQUIRED BY
14 SECTION 7 (B) OF THIS ACT AND WHETHER THE TRANSFEREE IS AN
15 IMMEDIATE OR REMOTE TRANSFEREE OF THE PERSON SUPPLYING CONSUMER
16 GOODS AND SERVICES.
17 (C) NOTWITHSTANDING ANYTHING CONTAINED IN THIS ACT, NEITHER
18 A DEPOSITORY NOR A COLLECTING NOR A PAYOR BANK SHALL BE OR
19 BECOME LIABLE TO A CONSUMER'S DEFENSES OR CLAIMS AGAINST A
20 PERSON SUPPLYING CONSUMER GOODS OR SERVICE BY REASON OF THE
21 HANDLING IN COURSE OF CURRENT COLLECTION FOR A CUSTOMER OF ANY
22 ITEM MADE DRAWN OR ACCEPTED BY A CONSUMER.
23 SECTION 10. RELATED LENDERS AND CREDIT CARD ISSUES SUBJECT
24 TO CONSUMER CLAIMS AND DEFENSES.--(A) WITH RESPECT TO A CONSUMER
25 LOAN, OTHER THAN A LOAN PRIMARILY FOR AGRICULTURAL PURPOSES, A
26 LENDER WHO IS A RELATED LENDER WITH RESPECT TO A PERSON
27 SUPPLYING CONSUMER GOODS OR SERVICES, SHALL BE SUBJECT TO ALL
28 CLAIMS AND DEFENSES OF THE BORROWER ARISING OUT OF THE CONSUMER
29 TRANSACTION FOR WHICH THE LOAN WAS MADE, WHICH WOULD BE
30 ASSERTABLE IN AN ACTION BETWEEN THE BORROWER AND THE PERSON
19750H0170B1732 - 18 -
1 SUPPLYING THE GOODS AND SERVICES BUT THE LENDER'S LIABILITY IN
2 THE AGGREGATE FOR ANY ONE CONSUMER TRANSACTION SHALL NOT EXCEED
3 THE AMOUNT ORIGINALLY LOANED TO THE BORROWER IN RESPECT OF THAT
4 TRANSACTION.
5 (B) THE TERM "RELATED LENDER" REFERS TO A LENDER WHOSE
6 PARTICIPATION IN A CONSUMER TRANSACTION IS ARRANGED BY THE
7 SELLER OF THE CONSUMER GOODS PURCHASED. KNOWLEDGE ALONE ON THE
8 PART OF THE LENDER THAT THE PROCEEDS OF THE LOAN SHALL BE USED
9 TO PURCHASE CONSUMER GOODS SHALL NOT CAUSE THE LENDER TO BE A
10 "RELATED LENDER." WITHOUT LIMITING THE SCOPE OF INQUIRY
11 CONCERNING ARRANGEMENT BY THE SELLER, THE SELLER WILL BE DEEMED
12 TO HAVE ARRANGED THE LOAN, AND THE LENDER MAY BE PRESUMED TO BE
13 A "RELATED LENDER" WHEN ONE OR MORE OF THE FOLLOWING
14 CIRCUMSTANCES EXIST:
15 (1) THE LENDER OR A PRINCIPAL OFFICER, PRINCIPAL
16 SHAREHOLDER, PARTNER, OWNER, OR PRINCIPAL SUPPLIER OF CAPITAL IS
17 SO CONNECTED WITH OR RELATED BY BLOOD OR THROUGH MARRIAGE TO THE
18 PERSON SUPPLYING THE CONSUMER GOODS OR SERVICES OR ONE OF SUCH
19 PERSON'S PRINCIPAL OFFICERS, PRINCIPAL SHAREHOLDERS, PARTNERS,
20 OWNERS OR PRINCIPAL SUPPLIER OF CAPITAL OTHER THAN THAT SUPPLIED
21 BY THE LENDER, THAT DEALINGS BETWEEN THE LENDER AND THE PERSON
22 SUPPLYING THE CONSUMER GOODS AND SERVICES WOULD NOT BE AT ARM'S
23 LENGTH; OR
24 (2) THE LENDER HAS FURNISHED THE SELLER WITH FORMS FOR LOAN
25 APPLICATIONS AND THE FORM WAS FURNISHED TO THE CONSUMER BY OR ON
26 BEHALF OF THE PERSON FURNISHING THE CONSUMER GOODS AND SERVICES;
27 OR
28 (3) THE PERSON SUPPLYING THE CONSUMER GOODS OR SERVICES
29 RECEIVES A FEE OR OTHER THING OF VALUE FROM THE LENDER IN
30 RESPECT OF THE LOAN OR OTHERWISE HAS A PARTICIPATION, DIRECTLY
19750H0170B1732 - 19 -
1 OR INDIRECTLY, WITH THE LENDER IN THE FINANCE CHARGE ON THE
2 LOAN, OR HAS AGREED TO PURCHASE FROM THE LENDER, UPON DEFAULT,
3 ANY COLLATERAL HELD FOR THE LOAN; OR
4 (4) THE LENDER DIRECTLY OR INDIRECTLY CONTROLS, OR IS
5 DIRECTLY OR INDIRECTLY CONTROLLED BY, OR IS UNDER DIRECT OR
6 INDIRECT COMMON CONTROL WITH THE PERSON SUPPLYING THE CONSUMER
7 GOODS OR SERVICES; OR
8 (5) THE PERSON SUPPLYING THE CONSUMER GOODS OR SERVICES HAS
9 REFERRED THE CONSUMER, OR THREE OR MORE OTHER BORROWERS TO THE
10 LENDER FOR LOANS TO ACQUIRE CONSUMER GOODS OR SERVICES FROM THE
11 PERSON; OR
12 (6) THE LENDER AND THE PERSON SUPPLYING THE CONSUMER GOODS
13 AND SERVICES ARE ENGAGED IN A JOINT VENTURE TO PRODUCE CONSUMER
14 OBLIGATIONS PAYABLE TO THE LENDER; OR
15 (7) THE LENDER HAS RECOURSE TO THE SELLER FOR NONPAYMENT OF
16 THE LOAN THROUGH GUARANTY, RESERVE ACCOUNT OR OTHERWISE.
17 (C) AN ISSUER OF A THIRD PARTY CREDIT CARD SHALL BE A
18 RELATED LENDER IF THE CONSUMER GOODS OR SERVICES ARE ACQUIRED BY
19 THE USE OF ITS CREDIT CARD AND THE GOODS OR SERVICES ACQUIRED:
20 (1) HAVE A CASH PRICE OF MORE THAN $40; AND
21 (2) DO NOT CONSIST OF MEALS, LODGING, DRINK CONSUMED ON
22 PREMISES, OR TICKETS FOR TRAVEL, SPORTS OR OTHER ENTERTAINMENT;
23 AND
24 (3) WERE ACQUIRED IN THE STATE OF THE CONSUMER'S RESIDENCE,
25 OR, IF IN ANOTHER STATE, AT A PLACE WITHIN 100 MILES OF THE
26 CONSUMER'S RESIDENCE.
27 (D) THE CONTRACT OR AGREEMENT OF THE RELATED LENDER WITH THE
28 CONSUMER SHALL BE SUBJECT TO THE PROVISIONS OF SECTION 4.
29 SECTION 11. LIMITATION ON LIABILITY OF A TRANSFEREE OR
30 RELATED LENDER.--GOODS OR SERVICES PURCHASED BY USE OF A THIRD
19750H0170B1732 - 20 -
1 PARTY CREDIT CARD OR ON A REVOLVING CREDIT PLAN SHALL NOT BE
2 DEEMED PAID FOR UNTIL THE OCCURRENCE OF THE EARLIER OF (1) THE
3 BALANCE IN THE ACCOUNT IS REDUCED TO ZERO, OR (2) THE GOOD OR
4 SERVICE ACQUIRED WOULD HAVE BEEN FULLY PAID BY THE APPLICATION
5 EACH MONTH TO THE PRINCIPAL AMOUNT ORIGINALLY FINANCED OR
6 CHARGED IN RESPECT OF SUCH GOOD OR SERVICE OF THE MINIMUM
7 PAYMENT REQUIRED FOR A CREDIT OF THAT AMOUNT BY THE RULES OF THE
8 CREDIT CARD ISSUER OR THE PERSON GRANTING THE REVOLVING CREDIT.
9 SECTION 12. PROHIBITED TERMS AND SECURITY INTERESTS.--(A) NO
10 CONSUMER TRANSACTION SHALL, EXCEPT UNDER A REVOLVING CREDIT
11 PLAN, HAVE ANY SCHEDULED PAYMENT INCLUDING INTEREST OR FINANCE
12 CHARGE WHICH IS MORE THAN TWICE AS LARGE AS THE AVERAGE OF THE
13 EARLIER SCHEDULED PAYMENTS UNLESS THE CONSUMER HAS THE OPTION TO
14 REFINANCE THE AMOUNT OF THAT LARGER PAYMENT OR PAYMENTS UPON THE
15 SAME INTEREST RATE AND OTHER TERMS AND WITHOUT PENALTY IN
16 FURTHER PAYMENTS NO LARGER THAN THE AVERAGE OF THE PAYMENTS
17 PRECEDING SUCH LARGER PAYMENTS.
18 (B) NO SECURITY INTEREST TAKEN OR RESERVED IN A CONSUMER
19 TRANSACTION SHALL ATTACH TO GOODS OR SERVICES ACQUIRED IN A
20 PRIOR OR SUBSEQUENT CONSUMER TRANSACTION WITH THE SAME PERSON
21 UNLESS THE CONTRACT OR AGREEMENT PROVIDES THAT PAYMENTS RECEIVED
22 IN RESPECT OF UNPAID PRINCIPAL SHALL BE APPLIED FIRST TO THE
23 UNPAID PRINCIPAL AMOUNT DUE IN RESPECT OF THE UNPAID DEBTS FIRST
24 INCURRED. TO THE EXTENT THAT DEBTS ARE PAID ACCORDING TO THIS
25 SUBSECTION, SECURITY INTERESTS IN ITEMS OF PROPERTY FOR WHICH
26 SUCH DEBTS WERE FIRST INCURRED SHALL TERMINATE.
27 (C) NO CONTRACT OR AGREEMENT ENTERED INTO IN RESPECT OF A
28 CONSUMER TRANSACTION SHALL GRANT A SECURITY INTEREST IN GOODS
29 NOT ACQUIRED FROM OR FINANCED BY A DIRECT LOAN FROM THE SAME
30 SECURED PARTY, BUT THIS SECTION SHALL NOT APPLY TO LOANS MADE BY
19750H0170B1732 - 21 -
1 A LENDER WHICH IS NOT A RELATED LENDER WITH RESPECT TO THE
2 TRANSACTION.
3 SECTION 13. CONSUMER PROPERTY EXEMPT FROM EXECUTION.--(A) IN
4 ADDITION TO THE EXEMPTIONS PROVIDED BY OTHER LAW THE FOLLOWING
5 PROPERTY SHALL BE EXEMPT FROM LEVY AND SALE UNDER A JUDGMENT
6 OTHER THAN A JUDGMENT ON A PURCHASE MONEY SECURITY INTEREST,
7 OBTAINED IN A PROCEEDING ARISING OUT OF A CONSUMER TRANSACTION:
8 (1) ALL MEDICAL HEALTH EQUIPMENT AND SUPPLIES USED FOR
9 HEALTH PURPOSES BY THE DEBTOR, THE DEBTOR'S SPOUSE AND
10 DEPENDENTS.
11 (2) TOOLS OF THE TRADE, INCLUDING ANY INCOME PRODUCING
12 PROPERTY USED IN THE PRINCIPAL OCCUPATION OF THE DEBTOR, NOT TO
13 EXCEED THE VALUE OF $500.
14 (3) CLOTHING, AND OTHER WEARING APPAREL, AND FURNITURE,
15 FURNISHINGS, APPLIANCES AND FIXTURES ORDINARILY AND GENERALLY
16 USED FOR HOUSEHOLD PURPOSES IN THE PRINCIPAL RESIDENCE OF THE
17 DEBTOR, TO THE VALUE OF $1,500.
18 (B) THE DOLLAR VALUES OF ALL PROPERTY COMING WITHIN ANY
19 CATEGORY OF THE EXEMPTION SHALL BE INITIALLY ESTIMATED BY THE
20 OFFICER MAKING THE LEVY, IF AN EXCESS OVER THE EXEMPTION IS
21 ASSERTED BY THE CREDITOR. IF THE EXCESS SO DETERMINED IS
22 DISPUTED THE OFFICER MAKING THE LEVY SHALL FORTHWITH IMPANEL A
23 JURY OF THREE CITIZENS FROM THE VICINITY WHO SHALL DETERMINE THE
24 VALUE OF THE PROPERTY BY A MAJORITY VOTE. IF THE AMOUNT OF
25 EXCESS OR ITS EXISTENCE IS STILL DISPUTED BY THE CREDITOR THE
26 VALUE SHALL BE DETERMINED BY AN IMPARTIAL APPRAISER APPOINTED BY
27 THE COURT AND THE CREDITOR SHALL PAY THE FEES AND EXPENSES OF
28 THE APPRAISER. AS USED IN THIS SUBSECTION THE TERM "VALUE" MEANS
29 THE AMOUNT THAT WOULD ORDINARILY BE REALIZED AT AN EXECUTION
30 SALE OF THE PROPERTY INVOLVED.
19750H0170B1732 - 22 -
1 (C) THE EXEMPTIONS PROVIDED IN THE PRECEDING SECTION SHALL
2 NOT PREVENT THE LEVY UPON AND SALE OF PROPERTY SUBJECT TO A
3 PURCHASE MONEY SECURITY INTEREST TO SATISFY A JUDGMENT OBTAINED
4 FOR THE UNPAID PURCHASE PRICE, BUT AFTER SUCH LEVY AND SALE, THE
5 FAIR MARKET VALUE OF THE PROPERTY IN THE RETAIL MARKET FOR SUCH
6 PROPERTY LESS 10% FOR COSTS OF RESALE SHALL BE CREDITED UPON THE
7 DEBT, AND NOT THE PRICE REALIZED AT THE EXECUTION SALE. ANY
8 ATTEMPT TO COLLECT MORE THAN THE AMOUNT REMAINING UNPAID AFTER
9 CREDITING SUCH MARKET VALUE IS A VIOLATION OF THIS ACT.
10 (D) AT THE TIME OF MAKING ANY LEVY UPON THE GOODS OR REAL
11 ESTATE OF A CONSUMER, THE OFFICER MAKING THE LEVY SHALL GIVE THE
12 CONSUMER A NOTICE SETTING FORTH THE EXEMPTIONS FROM EXECUTION TO
13 WHICH THE CONSUMER IS ENTITLED AND SHALL NOT LEVY UPON ANY
14 PROPERTY SPECIFICALLY EXEMPTED OR THEN DESIGNATED BY THE
15 CONSUMER AS PROPERTY TO BE RETAINED WITHIN THE DOLLAR LIMITS OF
16 ANY EXEMPTION OF PROPERTY UP TO A SPECIFIC DOLLAR LIMIT, EXCEPT,
17 IN EACH CASE WHERE THE JUDGMENT WAS OBTAINED UPON A DEBT SECURED
18 BY A PURCHASE MONEY SECURITY INTEREST IN THE PARTICULAR
19 PROPERTY.
20 (E) NO WAIVER OF EXEMPTIONS SHALL BE EFFECTIVE.
21 SECTION 14. CIVIL RECOVERIES.--(A) WHEN A FINANCE CHARGE IS
22 INVOLVED IN A CONSUMER TRANSACTION ANY PERSON WHO VIOLATES ANY
23 PROVISION OF THIS ACT SHALL BE LIABLE FOR EACH VIOLATION TO EACH
24 CONSUMER WITH RESPECT TO WHOM A VIOLATION IS COMMITTED IN AN
25 AMOUNT EQUAL TO THE DAMAGES ACTUALLY SUFFERED, BUT IN ANY EVENT
26 NOT LESS THAN THE CREDIT SERVICE CHARGE PLUS 10% OF THE
27 PRINCIPAL AMOUNT OF THE DEBT OR THE TIME PRICE DIFFERENTIAL PLUS
28 10% OF THE CASH PRICE. THE LIABILITY TO EACH CONSUMER UNDER THIS
29 SUBSECTION SHALL NOT HOWEVER, EXCEED $1,000 IN THE AGGREGATE, IN
30 RESPECT OF ANY ONE TRANSACTION.
19750H0170B1732 - 23 -
1 (B) WHEN A FINANCE CHARGE IS NOT INVOLVED IN A CONSUMER
2 TRANSACTION ANY PERSON WHO VIOLATES A PROVISION OF THIS ACT
3 SHALL BE LIABLE FOR EACH VIOLATION TO EACH CONSUMER WITH RESPECT
4 TO WHOM THE VIOLATION IS COMMITTED FOR THE ACTUAL DAMAGES
5 SUFFERED BUT IN ANY EVENT NOT LESS THAN 10% OF THE CASH PRICE OR
6 TOTAL RENTAL TO BE CHARGED FOR EACH VIOLATION PLUS THE SUM OF
7 $100 BUT THE LIABILITY TO EACH CONSUMER IN RESPECT OF ANY ONE
8 TRANSACTION SHALL NOT EXCEED $1000 UNDER THIS SUBSECTION.
9 (C) IN A SUCCESSFUL ACTION TO RECOVER FOR A VIOLATION OF
10 THIS ACT, THE CONSUMER SHALL ALSO RECOVER THE FEES AND EXPENSES
11 OF ANY NECESSARY EXPERT WITNESSES AND A REASONABLE COUNSEL FEE
12 BASED ON TIME REASONABLY SPENT WITHOUT REGARD TO THE AMOUNT IN
13 CONTROVERSY BUT AFTER TAKING INTO ACCOUNT THE CONTINGENT NATURE
14 OF CONSUMER REPRESENTATION.
15 (D) THE PROVISIONS OF THIS SECTION ARE SUBJECT TO THE
16 PROVISIONS OF SECTION 15 (B).
17 SECTION 15. PUBLIC ENFORCEMENT.--(A) WHENEVER THE ATTORNEY
18 GENERAL OR ANY DISTRICT ATTORNEY HAS REASON TO BELIEVE THAT ANY
19 PERSON IS USING OR IS ABOUT TO USE ANY METHOD, FORM OF CONTRACT,
20 OR ACT CONSTITUTING A VIOLATION OF THIS ACT, AND THAT
21 PROCEEDINGS WOULD BE IN THE PUBLIC INTEREST THAT OFFICIAL MAY
22 BRING AN ACTION IN THE NAME OF THE COMMONWEALTH AGAINST SUCH
23 PERSON TO RESTRAIN BY INJUNCTION THE USE OF FURTHER USE OF SUCH
24 METHOD, FORM OR CONTRACT OR ACT. THE ACTION MAY BE BROUGHT IN
25 THE COURT OF COMMON PLEAS IN THE COUNTY IN WHICH SUCH PERSON
26 RESIDES, HAS A PRINCIPAL PLACE OF BUSINESS OR IS DOING BUSINESS
27 IN THIS COMMONWEALTH, OR IT MAY BE BROUGHT IN THE COMMONWEALTH
28 COURT. THE COURTS ARE AUTHORIZED UPON PROPER PROOF OF THE
29 VIOLATION OR PROPOSED VIOLATION TO ISSUE TEMPORARY OR PERMANENT
30 INJUNCTIONS, WITHOUT BOND, TO PREVENT VIOLATIONS OF THIS ACT.
19750H0170B1732 - 24 -
1 THE COURT MAY ALSO, IN A PROPER CASE, ORDER RESTITUTION TO ALL
2 INJURED CONSUMERS ON SUCH TERMS AS JUSTICE MAY REQUIRE.
3 (B) EXCEPT WHERE RESTITUTION IS ORDERED, ANY SUCH PUBLIC
4 ACTION SHALL NOT PRECLUDE PRIVATE ACTIONS UNDER SECTION 14 BUT
5 WHERE RESTITUTION IS ORDERED, NO FURTHER INDIVIDUAL ACTIONS
6 SHALL BE COMMENCED AND, ON MOTION ANY PENDING ACTION MAY BE
7 STAYED OR DISMISSED AS JUSTICE MAY REQUIRE.
8 SECTION 16. DUTIES OF ATTORNEY GENERAL AND DISTRICT
9 ATTORNEYS.--THE ATTORNEY GENERAL SHALL HAVE THE POWER AND IT
10 SHALL BE HIS DUTY TO ENFORCE THIS ACT. EACH DISTRICT ATTORNEY
11 SHALL HAVE THE POWER AND IT SHALL BE HIS DUTY SUBJECT TO THE
12 GENERAL CONTROL OF THE ATTORNEY GENERAL TO ENFORCE THIS ACT IN
13 HIS DISTRICT.
14 SECTION 17. EFFECT ON OTHER ACTS.--(A) THIS ACT SUPPLEMENTS
15 THE ACT OF AUGUST 14, 1963 (P.L.1082, NO.464), KNOWN AS THE
16 "HOME IMPROVEMENT FINANCE ACT," THE ACT OF OCTOBER 28, 1966 (1ST
17 SP.SESS., P.L.55, NO.7), KNOWN AS THE "GOODS AND SERVICES
18 INSTALLMENT SALES ACT," AND THE ACT OF JUNE 28, 1947 (P.L.1110,
19 NO.476), KNOWN AS THE "MOTOR VEHICLE SALES FINANCE ACT." THE
20 PROVISIONS OF EACH ACT SHALL BE CONSTRUED AS HARMONIOUS EXCEPT
21 THAT IN THE CASE OF ANY CONFLICT THE PROVISIONS OF THIS ACT
22 SHALL CONTROL.
23 (B) IN THE CASE OF CONFLICT BETWEEN THE PROVISIONS OF THIS
24 ACT AND THE PROVISIONS OF THE UNIFORM COMMERCIAL CODE OF
25 PENNSYLVANIA, THE PROVISIONS OF THIS ACT SHALL CONTROL.
26 (C) SECTION 208 OF THE HOME IMPROVEMENT FINANCE ACT AND
27 SECTION 402 OF THE GOODS AND SERVICES INSTALLMENT SALES ACT ARE
28 HEREBY REPEALED ABSOLUTELY.
29 SECTION 18. EFFECTIVE DATE.--THIS ACT SHALL TAKE EFFECT IN
30 180 DAYS.
A7L13RZ/19750H0170B1732 - 25 -