A lender making small loans, or an assignee of a small loan, shall not commit nor cause to be committed any of the following acts:

1. (1) Threatening to use or using the criminal process in any state to collect on a small loan.
2. (2) Threatening to take action against a borrower that is prohibited by this chapter.
3. (3) Making a misleading or deceptive statement regarding a small loan or a consequence of taking a small loan.
4. (4) Contracting for or collecting attorney's fees on small loans made under this chapter.
5. (5) Altering the date or any other information on a check or an authorization to debit the borrower's account held as security.

6. (6) Using a device or agreement that the department determines would have the effect of charging or collecting more fees, charges, or interest than allowed by this chapter, including, but not limited to:

   1. (A) entering a different type of transaction with the borrower;
   2. (B) entering into a sales/leaseback arrangement;
   3. (C) catalog sales;
   4. (D) entering into transactions in which a customer receives a purported cash rebate that is advanced by someone offering Internet content services, or some other product or service, when the cash rebate does not represent a discount or an adjustment of the purchase price for the product or service; or
   5. (E) entering any other transaction with the borrower that is designed to evade the applicability of this chapter.
7. (7) Engaging in unfair, deceptive, or fraudulent practices in the making or collecting of a small loan.
8. (8) Charging to cash a check representing the proceeds of a small loan.

9. (9) Except as otherwise provided in this chapter:

   1. (A) accepting the proceeds of a new small loan as payment of an existing small loan provided by the same lender; or
   2. (B) renewing, refinancing, or consolidating a small loan with the proceeds of another small loan made by the same lender.

10. (10) Including any of the following provisions in a loan document:

    1. (A) A hold harmless clause.
    2. (B) A confession of judgment clause.
    3. (C) A mandatory arbitration clause, unless the terms and conditions of the arbitration have been approved by the director of the department.
    4. (D) An assignment of or order for payment of wages or other compensation for services.
    5. (E) A provision in which the borrower agrees not to assert a claim or defense arising out of contract.
    6. (F) A waiver of any provision of this chapter.
11. (11) Selling insurance of any kind in connection with the making or collecting of a small loan.

12. (12) Entering into a renewal with a borrower.

    [Pre-2026 Revision Citation: 24-4.5-7-410.]

As added by P.L.115-2026, SEC.97.