Who, what, where, how, and why?
Let’s answer some of your basic questions on the Fair Credit Practices Rule.
What Transactions are Covered?
The Rule covers all consumer credit transactions, except those involving the purchase of real estate.
What’s the Penalty?
The Federal Trade Commission can sue violators of the Credit Practices Rule in federal court. The court can impose civil penalties of up to $43,280 for each violation and can issue an order prohibiting further violations.
Prohibited Contract Provisions
Certain consumer provisions are now prohibited. These include: confessions of judgment; waivers of exemption; wage assignments; and security interests in household goods.
Dive in Deeper
If you want to learn more of the nitty gritty details, the FTC has lots more info for you. Dive in here: https://www.ftc.gov/tips-advice/business-center/guidance/complying-credit-practices-rule
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