Sec. 102. (1) This article shall be liberally construed and applied to promote its underlying purposes and policies.

     (2) The underlying purposes and policies of this article are:

(a) to simplify, clarify, and modernize the law governing retail installment sales, consumer credit, small loans, and usury;

(b) to provide rate ceilings to assure an adequate supply of credit to consumers;

(c) to further consumer understanding of the terms of credit transactions and to foster competition among suppliers of consumer credit so that consumers may obtain credit at reasonable cost;

(d) to protect consumer buyers, lessees, and borrowers against unfair practices by some suppliers of consumer credit, having due regard for the interests of legitimate and scrupulous creditors;

(e) to permit and encourage the development of fair and economically sound consumer credit practices;

(f) to conform the regulation of consumer credit transactions to the policies of the Consumer Credit Protection Act (15 U.S.C. § 1601 et seq.) and to applicable state and federal laws, rules, regulations, policies, and guidance; and

(g) to make uniform the law, including administrative rules among the various jurisdictions.

     (3) A reference to a requirement imposed by this article includes reference to a related rule or guidance of the department adopted pursuant to this article.

     (4) A reference to a federal law in this article is a reference to the law as in effect December 31, 2023.

     (5) This article applies to a transaction if the director determines that the transaction:

(a) is in substance a disguised consumer credit transaction; or

(b) involves the application of subterfuge for the purpose of avoiding this article.

A determination by the director under this subsection must be in writing and shall be delivered to all parties to the transaction. IC 4-21.5-3 applies to a determination made under this subsection.

     (6) The authority of this article remains in effect, whether a licensee, an individual, or a person subject to this article acts or claims to act under any licensing or registration law of this state, or claims to act without such authority.

     (7) A violation of a state or federal law, regulation, or rule applicable to consumer credit transactions is a violation of this article.

     (8) The department may enforce penalty provisions set forth in 15 U.S.C. § 1640 for violations of disclosure requirements applicable to mortgage transactions.

Formerly: Acts 1971, P.L.366, SEC.2. As amended by P.L.14-1992, SEC.2; P.L.122-1994, SEC.1; P.L.45-1995, SEC.2; P.L.176-1996, SEC.1; P.L.172-1997, SEC.1; P.L.80-1998, SEC.2; P.L.23-2000, SEC.1; P.L.63-2001, SEC.1 and P.L.134-2001, SEC.1; P.L.82-2002, SEC.1; P.L.258-2003, SEC.1; P.L.73-2004, SEC.15; P.L.141-2005, SEC.1; P.L.10-2006, SEC.1 and P.L.57-2006, SEC.1; P.L.213-2007, SEC.5; P.L.217-2007, SEC.4; P.L.90-2008, SEC.4; P.L.182-2009(ss), SEC.370; P.L.35-2010, SEC.36; P.L.89-2011, SEC.10; P.L.27-2012, SEC.13; P.L.216-2013, SEC.5; P.L.137-2014, SEC.5; P.L.186-2015, SEC.10; P.L.73-2016, SEC.4; P.L.159-2017, SEC.5; P.L.69-2018, SEC.12; P.L.176-2019, SEC.9; P.L.129-2020, SEC.4; P.L.54-2021, SEC.2; P.L.29-2022, SEC.2; P.L.197-2023, SEC.8; P.L.30-2024, SEC.2.