5406‑S AMH FII GAVI 7

SSB 5406 ‑ H COMM AMD ADOPTED

By Committee on Financial Institutions & Insurance

     On page 1, after line 17, insert the following:

     "NEW SECTION. Sec. 4. A new section is added to chapter 63.14 RCW to read as follows:

     (1) With respect to a retail installment transaction, as defined in RCW 63.14.010(8), if the court as a matter of law finds the agreement or contract, or any clause in the agreement or contract, to have been unconscionable at the time it was made, the court may refuse to enforce the agreement or contract, may enforce the remainder of the agreement or contract, or may limit the application of any unconscionable clause to avoid an unconscionable result.

     (2) If it is claimed or it appears to the court that the agreement or contract, or any clause in the agreement or contract, may be unconscionable, the parties shall be given a reasonable opportunity to present evidence as to its setting, purpose, and effect to assist the court in making a determination regarding unconscionability.

     (3) For the purpose of this section, a charge or practice expressly permitted by this chapter is not in itself unconscionable."

     Renumber the remaining section consecutively and correct the title reference accordingly.      

EFFECT:  Prohibits unconscionable retail financing agreements, and allows the court to provide a remedy.  A charge or practice expressly permitted by the Retail Installment Sales Act is not in itself unconscionable.