Skip to content

The Credit Practices Rule at a Glance

Toby Graham

The Credit Practices Rule at a Glance

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:

F&I Software & Services Designed for Dealerships

Vera F&I software and services are specifically designed for vehicle dealers including automotive, truck, RV, marine, and power sports. Our F&I compliance solutions will help you develop compliant sales processes, train sales and finance teams, safeguard consumer information, and maintain clean deal jackets—all to help you minimize risk and maximize profits.

Toby Graham

Toby manages the marketing communications team here at KPA. She's on a quest to help people tell clear, fun stories that their audience can relate to. She's a HUGE sugar junkie...and usually starts wandering the halls looking for cookies around 3pm daily.

More from this Author >

Back To Top