70C-8-104 - Enforcement proceedings.
70C-8-104. Enforcement proceedings.
(1) (a) The department may take an action described in Subsection (1)(b) if thedepartment determines that any party engaging in activities subject to this title is violating or hasviolated or the department has reasonable cause to believe is about to violate:
(i) any applicable provision of this title;
(ii) any rule or order under this title;
(iii) any condition imposed in writing in connection with the granting of any applicationor other request by the party; or
(iv) any federal statute or regulation pertaining to consumer credit in effect at the time ofthe determination described in Subsection (1)(a).
(b) If the department makes a determination described in Subsection (1)(a), thedepartment may:
(i) order the party to cease and desist from committing any further violations; and
(ii) in the most serious instances, prohibit a party from making further extensions ofcredit to consumers.
(c) The department shall by rule, made in accordance with Title 63G, Chapter 3, UtahAdministrative Rulemaking Act, and consistent with this chapter, designate which one or morefederal statutes or regulations are federal statutes or regulations pertaining to consumer credit forpurposes of this Subsection (1).
(2) The department shall afford an opportunity for hearing upon request of any partydescribed in Subsection (1)(a) if the request is filed with the department within 30 days after theparty requesting the hearing first receives notice of the allegations.
(3) (a) If the department determines that a practice that it has alleged is unlawful shouldbe enjoined during the pendency of any proceedings incident to that allegation, the departmentmay issue a temporary order:
(i) at the commencement of the proceedings; or
(ii) at any time after commencement of the proceeding.
(b) The temporary order described in this Subsection (3) is fully binding on the party towhom the temporary order is directed until:
(i) the proceedings are concluded; or
(ii) the temporary order is modified or dissolved by the department.
(c) Any party to whom a temporary order is directed may request a hearing concerningthe order, which shall be held:
(i) at the earliest mutually convenient time, but in no event more than 10 days, after theparty's request is received by the department; or
(ii) at any other time the parties may mutually agree upon.
(d) Every temporary order shall include findings and conclusions in support of the order.
(e) A temporary order may not be issued unless the department finds from specific factssupported by sworn statement or the records of a party subject to the order that consumers areotherwise likely to suffer immediate and irreparable injury, loss, or damage before proceedings,incident to a final order, can be completed.
(4) The department may not award damages or penalties against a creditor.
(5) (a) Any order issued by the department under authority of this title shall:
(i) be in writing;
(ii) be delivered to or served upon the party affected; and
(iii) specify its effective date, which may be immediate or at a later date.
(b) An order described in Subsection (5)(a) shall remain in effect until:
(i) withdrawn by the department; or
(ii) terminated by a court order.
(c) (i) An order of the department, upon application made on or after the effective date ofthe order by the department to a court of general jurisdiction in the county in which an office orthe residence of the party is located, may be enforced ex parte and without notice by an order tocomply entered by the court.
(ii) If the proceeding involves more than one party and each of the parties does not havean office or residence in one county, the department may file its application in any county of thisstate where one of the parties has an office or residence.
(iii) If no party to the proceeding has an office or residence in the state, the department'sapplication shall be filed in the Third District Court.
Amended by Chapter 382, 2008 General Session