MEMORANDUM OPINION
JAMES E. YACOS, Chief Judge.
Maryrose Arsenault, the debtor in this case, filed this adversary proceeding to void the second mortgage loan owed to the defendant due to violation of various New Hampshire consumer protection statutes. The Court ruled on some of the issues on cross motions for summary judgment (Court Doc. No. 20) and the remaining issues after a one day trial. (Court Doc. No. 24). At the conclusion of the trial, the Court made its findings of facts and rulings of law which are hereby incorporated by reference.
To briefly summarize, in September, 1988 Maryrose Arsenault, the debtor and plaintiff in this case contacted Mansfield Mortgage Company for the purpose of refinancing a $16,679.11 second mortgage on her home then held by United Savings Bank. Mansfield Mortgage denied Ms. Arsenault's application and referred her to Realty Funding Corp. who did agree to refinance her loan. On October 5, 1988, the plaintiff signed a three year promissory Note for $32,000. Under the terms of the Note, the plaintiff was to remit monthly payments of interest only for 35 months commencing on December 1, 1988 and one final payment of the outstanding principal and interest on November 1, 1991. Realty Funding's monthly interest only payments were at a variable rate between 18 percent and 36 percent for a term of three years. At the end of the three years a balloon payment of the original principal amount was due. Based on the record and findings previously made by this Court regarding the terms of this transaction and the circumstances surrounding the loan, the Court found the defendant willfully violated the provisions of N.H.Rev.St.Ann. § 358-K:3 (prohibiting advance collection of interest) and violated the provisions of N.H.Rev.St. Ann. § 398-A:2 II (limitation on the "charges" that may be collected upon default) although the latter was found "not a willful violation in that the requirements of the statute are not clear on its face and there is little or no case law interpreting the language." (Ct.Doc. No. 24, at 2).
At the conclusion of the trial, the Court ordered the parties to submit memorandums regarding the calculation of damages for the violations under the applicable statutory provisions. On January 26, 1995, after receipt of the memorandums, determination of the amount of damages was taken under advisement.
The statutory provisions in question will be set forth in some detail below since they are crucial to the appropriate determination of damages for the violations in question. Their general context however needs to be set forth first.
RSA § 358-K:3 appears in Chapter 358-K of the New Hampshire Revised Statutes entitled "Regulation of Consumer Credit Transactions" and § 358-K:6 makes applicable the provisions of that Chapter to all consumer credit transactions both secured and unsecured including those secured by a real property mortgage. The transaction in the present litigation with this defendant falls within the applicability of this Chapter.
RSA 398-A:2 "Interest and Interest Rates" appears in Chapter 398-A of the New Hampshire Revised Statutes entitled "Second Mortgage Home Loans" and provides the basic limitation on interest and interest rates permissible under New Hampshire law. It also provides explicitly in § 398-A:7 for the appropriate treatment of illegal loans under this Chapter. The transaction in the present litigation and this defendant come within the applicability of this Chapter.
RSA 358-A:2 is also implicated in the present case. That statute deals generally with unfair or deceptive acts or unfair methods of competition and appears in Chapter 358-A of the New Hampshire Revised Statutes entitled "Regulation of Business Practices For Consumer Protection" and provides in § 358-A:10 for private actions resulting from violations of this Chapter.
We now turn to the specific statutory provisions in question, as they existed on the date of the subject transaction, and the particular legal issues presented in this case.
N.H.Rev.St.Ann. § 358-K:3
The issue before the Court under this statute is whether the defendant's willful violation of N.H.Rev.St.Ann. § 358-K:3 should result in either (1) a voiding of the entire contract in terms of its interest provisions, or (2) a voiding of only the illegal "advance interest" portion of the contract. The relevant statutory provisions read as follows:
358-K:3: Advance Collection of Interest in Consumer Credit Transactions Prohibited After June 30, 1985.
Notwithstanding any other law to the contrary, with respect to closed-end consumer credit transactions entered into after June 30, 1985, interest shall be collected only as earned, and no interest on such transactions shall be paid, deducted or added to principal in advance. This section shall not preclude the advance collection or prepayment of other charges to which the transaction is subject. This section shall not apply to the advance collection of interest at the inception of a closed-end consumer credit transaction for origination fees or for a fractional part of a month in order to achieve a common or convenient monthly payment date as provided by RSA 358-K:4-a.
358-K:5: Penalty.
Any person who willfully violates any provision of this chapter shall be guilty of a misdemeanor.
358-K:6: Application of Chapter to Types of Transactions.
The provisions of this chapter shall apply to all consumer credit transactions, both secured and unsecured, including those transactions secured by a real property mortgage.
N.H.Rev.St.Ann. § 398-A:2
The issue before the Court under this statute is the remedy for the defendant's nonwillful violation of N.H.Rev.St.Ann. § 398-A:2. The relevant statutory provisions under 398-A read as follows:
398-A:2 (I & II) Interest and Interest Rates.
I. The allowable rate of interest computed on the unpaid balance that any person may directly or indirectly charge, take or receive for a second mortgage loan secured by property which is occupied in whole or in part at the time said loan is made as a home by any obligor on the mortgage debt or by any person granting or releasing any interest under said mortgage shall be the rate agreed upon in the note between borrower and lender; and following the sixth month of any period in which a loan has been in continuous default not more than 1½ percent per month on any unpaid balances. Amended 1985, 397:7. 1987, 339:8, eff. Jan. 1, 1988.
II. Notwithstanding any other provisions of this chapter the charges which may be collected on any loan made under this chapter for the period beginning 6 months after the originally scheduled final installment date of a loan other than an open-end loan, or for the period beginning 6 months after the final due date of an open-end loan as established by the term applicable to the loan from time to time in accordance with the open-end note or loan agreement and ending with date of payment of the loan in full shall not exceed 18 percent per annum simple interest on the balances outstanding from time to time during said period. If the loan is an open-end loan the borrower\'s privilege for further loans shall not be reinstated by the licensee where the rate has been reduced under the preceding sentence unless the borrower executes a new open-end loan agreement.
398-A:7 Illegal Loans.
Any loan made in violation of RSA 398-A:2 by any person shall be discharged upon payment or tender by the debtor or any person succeeding to his interest in such real estate of the principal sum actually borrowed. Any agreement whereby the borrower waives the benefits of RSA 398-A:2 or releases any rights he may have acquired by virtue thereof shall be deemed against public policy and void. The superior court shall have jurisdiction of all suits arising under RSA 398-A:2 and if a finding is made that such loan secured by any such mortgage violates said section such borrower shall be entitled as a part of his costs to a reasonable fee for the services of his attorney in such suit.
398-A:7-a Penalty.
Any person who willfully violates any provision of this chapter shall be guilty of a misdemeanor if a natural person, or guilty of a felony if any other person, for each such violation.
N.H.Rev.St.Ann. § 358-A:2
The issue before the court under the Consumer Protection provisions of Chapter 358-A is whether the violations of the other statutory provisions should also be determined to be a violation of this statutory proscription as well. A violation under Chapter 358-A can lead to enhanced doubling or trebling of damages as well as specific provision for allowance of attorneys' fees and costs. A secondary issue is whether independently of the fact of proven violation of other statutory provisions by the defendant the conduct of the defendant involved in the present litigation should be determined to constitute a violation of § 358-A:2 directly. The relevant statutory provisions under Chapter 358-A are as follows:
358-A:2 Acts Unlawful.
It shall be unlawful for any person to use any unfair method of competition or any unfair or deceptive act or practice in the conduct of any trade or commerce within this state. Such unfair method of competition or unfair or deceptive act or practice shall include, but is not limited to, the following:
I. Passing off goods or services as those of another;
II. Causing likelihood of confusion or of misunderstanding as to the source, sponsorship, approval, or certification of goods or services;
III. Causing likelihood of confusion or of
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