Sec. 1317.08. (A)(1) No retail installment contract that | 9 |
evidences an indebtedness greater than that allowed under
sections | 10 |
1317.06, 1317.061, 1317.062, and
1317.07 of the Revised Code, and | 11 |
no retail installment
contract in connection with which any charge | 12 |
prohibited by
sections 1317.01 to 1317.11 of the Revised Code has | 13 |
been contracted for or received, shall be enforceable with respect | 14 |
to that excess indebtedness or charge against any
retail buyer or | 15 |
any other person who as surety, indorser,
guarantor, or otherwise | 16 |
is liable on the obligation created by
any retail buyer on any | 17 |
retail installment contract, and no. | 18 |
(2) No security interest created by any
such retail | 19 |
installment contract
described in division (A)(1) of this section | 20 |
that is greater than that allowed under
sections 1317.06, 1317.07, | 21 |
and
1317.071 of the Revised Code shall be
enforceable with respect | 22 |
to that excess security interest against any
retail buyer or any | 23 |
of the
aforementioned
persons
described in division (A)(1) of this | 24 |
section, in default under the terms of the retail installment | 25 |
contract.
In | 26 |
(B) In order for a retail buyer, or any of the
aforementioned | 27 |
persons
described in division (A)(1) of this section that is | 28 |
liable on the retail buyer's
obligation, to avail the retail buyer | 29 |
or other person of
this section,
the retail buyer or other person | 30 |
must prove that the retail
seller or the holder of the retail | 31 |
installment contract has been notified in
writing of the | 32 |
overcharge and has failed within ten days of such
notification to | 33 |
advise the retail buyer of a full credit, or the
retail buyer or | 34 |
other person must prove that the overcharge has
been willful. A | 35 |
correction of
any overcharge within sixty days of the date of | 36 |
making of the
retail installment contract is conclusive proof of | 37 |
lack of
willfulness.
This | 38 |
(D) If charges greater in amount than those provided for in | 42 |
sections 1317.01 to 1317.11 of the Revised Code are
contracted for | 43 |
or received by the retail seller or the
retail seller's agent, | 44 |
assignee, or successor in interest, the retail buyer or the
retail | 45 |
buyer's assignee or successor in interest may recover the
total | 46 |
amount of finance charges paid to the retail seller
or the retail | 47 |
seller's agent,
assignee, or successor in interest, in excess of | 48 |
the interest rate
that otherwise would apply under section 1343.01 | 49 |
of the Revised Code. | 50 |
No person shall enter into any agreement with any retail | 51 |
seller regarding the purchase, assignment, or transfer of any | 52 |
retail installment contract whereby the retail seller shall | 53 |
receive or retain, directly or indirectly, any benefit from or | 54 |
part of any amount collected or received, or to be collected or | 55 |
received, from any retail buyer as a finance charge or as the
cost | 56 |
of insurance or other benefits to the retail buyer, in
excess of | 57 |
two per cent of the principal balance of the retail
installment | 58 |
contract. No person shall, directly or indirectly,
pay to the | 59 |
retail seller, and no retail seller shall, directly or
indirectly, | 60 |
receive or retain any part of the amount collected,
or to be | 61 |
collected, as a finance charge or retail buyer's cost of
insurance | 62 |
or other benefits on any retail installment contract
purchased, | 63 |
assigned, or transferred from the retail seller,
in excess of two | 64 |
per cent of the principal balance of the retail installment | 65 |
contract, provided this paragraph does not apply in case of a
bona | 66 |
fide sale of a retail installment contract, if, as part of
the | 67 |
consideration for such sale and purchase, the retail seller
agrees | 68 |
to act, and does act, as agent for the purchaser in making | 69 |
collection of all amounts due on and otherwise completely | 70 |
servicing the retail installment contract, including
billing, | 71 |
posting, and maintaining complete records applicable thereto. | 72 |
Compensation received by the retail seller as commission | 73 |
received by the retail seller from an insurance company as
its | 74 |
licensed agent,
is not a benefit received by the retail seller out | 75 |
of the
insurance charge to the retail buyer under the installment | 76 |
contract. Any sale, assignment, or transfer of a retail | 77 |
installment contract in violation of this section is void.
Except | 78 |
as specifically limited by this paragraph all instruments
that are | 79 |
a part of a retail installment contract are
freely assignable and | 80 |
transferable. | 81 |