2020 Colorado Revised Statutes
Title 5 - Consumer Credit Code
Article 10. Rental Purchase Agreements
Section 5-10-903. Unconscionability.
(1) With respect to a rental purchase transaction, if the court as a matter of law finds the transaction, the agreement, or any clause of the agreement to have been unconscionable at the time it was made, the court may refuse to enforce the agreement or it may enforce the remainder of the agreement without the unconscionable clause, or it may so limit the application of any unconscionable clause as to avoid any unconscionable result.
If it is claimed or appears to the court that the transaction, the agreement, or anyclause thereof may be unconscionable, the parties shall be afforded a reasonable opportunity to present evidence as to its setting, purpose, and effect to aid the court in making any such determination related to unconscionability.
If, in an action in which unconscionability is claimed, the court finds unconscionability pursuant to this section, the court may award the costs of the action and a reasonable attorney fee to the lessee. If the court does not find unconscionability and does find that the lessee claiming unconscionability brought or maintained an action he knew to be groundless, the court may award the costs of the action and a reasonable attorney fee to the party against whom the claim was made. In determining such attorney fee, the amount of recovery claimed on behalf of the lessee shall not be controlling.
The remedies of this section are in addition to remedies otherwise available for thesame conduct authorized under law other than in this article, but double recovery of actual damages may not be had.
For the purpose of this section, a charge or practice expressly permitted by this article is not in itself unconscionable.
Source: L. 90: Entire article added, p. 377, § 1, effective January 1, 1991.
Effect of correction. Notwithstanding sections 5-10-801 and 5-10-902, any failure to comply with any provisions of this article resulting from a bona fide or clerical error may be corrected by the lessor within sixty days after discovering an error and prior to the institution of any action under this article, or within sixty days of the receipt of written notice of the error after the date of execution of the rental purchase agreement by the lessee. If so corrected, neither the lessor nor any holder is subject to penalty under this section. A copy of any rental purchase agreement to which such a correction is made shall be promptly sent to the lessee.
Source: L. 90: Entire article added, p. 377, § 1, effective January 1, 1991.
Statute of limitations. No action shall be brought by a lessee under this article more than three years after the lessee knew or should have known of the occurrence of the alleged violation. This section does not bar a person from asserting a violation of this article in any action to collect the debt which was brought more than three years from the date of the occurrence of the violation as a matter of defense by recoupment or setoff in such action.
Source: L. 90: Entire article added, p. 378, § 1, effective January 1, 1991.
Cross references: For statutes of limitations generally, see article 80 of title 13.
