Section 16-115. PROHIBITED CONTRACT FORM PROVISIONS

 

115.1No person subject to this chapter shall use any contract form or any other instrument arising in connection with a retail installment transaction which contains any of the following:

 

(a)Any schedule of payments under which any one installment, except the downpayment, is not equal or substantially equal to all other installments, excluding the downpayment, or under which the intervals between any consecutive installments differ substantially, except as follows:

 

(1)The intervals for the first installment payment may be longer or shorter than the other intervals;

 

(2)The final installment payment may be less in amount than the preceding installment payment; and

 

(3)If a buyer's livelihood is dependent upon seasonal or intermittent income, the seller and the buyer may agree that one or more installment payments in the schedule of payments may be reduced or deferred;

 

(b)Any provision for the acceleration of the time when any part or all of the indebtedness becomes payable other than for a substantial default in payment or performance by the buyer, or on the same grounds that would authorize an attachment before judgment under D.C. Code §§ 16-501(d)(3)-(5) (1981 Ed.);

 

(c)Any provision by which the buyer agrees not to assert against a seller, or against an assignee, any claim or defense arising from the sale of the consumer goods or services which are the subject matter of the contract;

 

(d)Any provision by which the buyer grants authority to the seller or assignee to enter the buyer's premises without consent of the buyer obtained immediately prior to entering the premises to repossess the collateral, if any;

 

(e)Any provision by which the buyer waives any right of action against the seller, assignee, or other person acting on behalf of either, for any illegal act committed in the collection of payments under the contract or in the repossession of goods;

 

(f)Any provision whereby the buyer executes a power of attorney appointing the seller, assignee, or other persons acting in the seller's behalf, as the buyer's agent in the collection of payments under the contract or in the repossession of collateral security;

 

(g)Any provision for the payment by the buyer of attorney's fees incurred by the seller or the seller's assignee in the collection of the debt created by the contract; or

 

(h)Any provision permitting a seller or seller's assignee on default of the buyer to take possession of the goods sold under the contract, unless the contract expressly waives all claims against the buyer for any deficiency between the proceeds of the disposition and the outstanding balance due on the contract.

 

115.2Notwithstanding any other provision of this section, any written provision in a retail installment contract or agreement which provides for settlement by arbitration of any controversy thereafter arising out of or related to the contract or agreement or breach of the contract or agreement, or any agreement in writing to submit to arbitration of any controversy, shall not be unenforceable or made invalid by reason of this chapter.