31-1-825. Prohibited acts. (1) A title lender may not:
     (a) accept a pledge from a person under 18 years of age;
     (b) make any title loan agreement giving the title lender any recourse against the borrower other than the rights granted title lenders under this part;
     (c) accept any waiver, in writing or otherwise, of any right or protection accorded a borrower pursuant to this part;
     (d) fail to exercise reasonable care to protect from loss or damage certificates of title or titled personal property in the physical possession of the title lender;
     (e) purchase titled personal property for personal use that was repossessed from the borrower by the title lender;
     (f) enter into a title loan agreement unless the borrower presents clear title to the titled personal property at the time that the loan is made and the title is retained in the physical possession of the title lender;
     (g) threaten to use or use a criminal process in this or any other state to collect on the loan made to a consumer in this state or any civil process to collect the payment of titled loans not generally available to creditors to collect on loans in default;
     (h) use any device or title loan agreement that would have the effect of charging or collecting more fees, charges, or interest than those allowed by this part;
     (i) engage in unfair, deceptive, or fraudulent practices in the making or collection of a title loan;
     (j) knowingly violate any provision of or rule promulgated pursuant to this part; or
     (k) include any of the following provisions in the title loan agreement:
     (i) a hold harmless clause, provided that a title lender is not liable to the borrower or a third party for injuries to or damages sustained by the borrower or a third party as the result of an accident involving personal property to which the title lender holds the certificate of title;
     (ii) a confession of judgment clause;
     (iii) any assignment of or order for payment of wages or other compensation for services;
     (iv) a provision in which the consumer agrees not to assert any claim or defense arising out of the contract; or
     (v) a waiver of any provision of this part.
     (2) If a title lender enters into a transaction contrary to this section, any lien or security interest obtained by the title lender is void.

     History: En. Sec. 17, Ch. 455, L. 2001.