Baker v. Autos, Inc.

Summary

The North Dakota Supreme Court held that retail installment contracts failed to disclose a loan fee as a finance charge under the North Dakota Retail Installment Sales Act. The court reversed the judgment dismissing the plaintiff’s class-action claims and remanded for consideration of willfulness and available remedies. The case also involved statutory late-fee limits and regulated-lender status under North Dakota usury law.

Holdings

1. The loan fee was a finance charge under N.D.C.C. §§ 51-13-01(4) and 51-13-03(4), and placing it in the amount financed rather than in the disclosed finance-charge amount did not satisfy the Retail Installment Sales Act.
2. The judgment dismissing Baker's claims was erroneous because the district court incorrectly concluded that the retail installment contracts complied with the finance-charge disclosure requirements.

Questions Presented

1. Whether the loan fee in the retail installment contract was a finance charge that the defendants were required to disclose as a finance charge under N.D.C.C. ch. 51-13.
2. Whether the district court erred by concluding that the retail installment contracts complied with the Retail Installment Sales Act's finance-charge disclosure requirements.
3. What issues concerning willfulness and remedies remained for the district court after the disclosure violation was established.

Disposition

reversed_and_remanded