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KANSAS COMMENT, 2000

The U3C recognizes that a basic issue in the regulation of consumer credit is adequate protection of consumers from creditor practices and agreements that are abusive or have a potential for abuse. In addition to the notice and disclosure requirements found in part 2 of this article, many restrictions on creditor practices are also included in this article. Many provisions limit the actual, substantive terms creditors may include in their agreements. These include limitations on collateral in consumer sales and leases, prohibition of certain abusive practices such as balloon payments and referral sales, and abolition of the holder in due course doctrine in most consumer transactions. In addition, many limitations on creditor remedies are found in article 5 of the U3C.