SB 3420

Abstract

Creates the Prohibition of Unfair Service Agreements Act. Provides for the characteristics of unfair service agreements and sets forth exceptions to the Act. Provides that if a service agreement is unfair under the Act, it is unenforceable and shall not create a contractual obligation. Provides that entering into an unfair service agreement with a consumer constitutes an unlawful practice under the Consumer Fraud and Deceptive Business Practices Act. Provides that all remedies, penalties, and authority granted to the Attorney General by the Consumer Fraud and Deceptive Business Practices Act shall be available to the Attorney General for the enforcement of the Act. Provides that no person shall record or cause to be recorded an unfair service agreement or a notice or memorandum of the unfair service agreement. Provides that a person who records or causes to be recorded an unfair service agreement or a notice or memorandum of the unfair service agreement shall be guilty of a Class A misdemeanor. Provides that, if an unfair service agreement or a notice or memorandum of the unfair service agreement is recorded, any person with an interest in the real property that is the subject of that agreement may apply to a court in the county where the recording exists to record a court order declaring the agreement unenforceable and that person may recover actual damages, costs, and attorney's fees as may be proven against the service provider who recorded the agreement. Effective immediately. Senate Committee Amendment No. 1 Provides that no person shall knowingly record or knowingly cause to be recorded (rather than record or cause to be recorded) an unfair service agreement or a notice or memorandum of the unfair service agreement. Removes provision concerning criminal penalties.