While the FTC’s Credit Practices Rule remains in effect for state-chartered credit unions, the credit practices rules for banks, savings associations, and Federal credit unions are being repealed as a consequence of the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).
Notwithstanding the repeal of these regulations, the Agencies have supervisory & enforcement authority regarding unfair or deceptive acts or practices, which could include the practices previously addressed in the former credit practices rules.
Generally, the types of contract provisions prohibited by the FTC’s Credit Practices Rule include confessions of judgment, waivers of exemptions, wage assignments, & security interests in household goods. The FTC’s Credit Practices Rule requires the creditor to provide a “Notice to Cosigner” to a cosigner before he or she becomes obligated for the debt. It also probiits pyramiding of late fees. See ii Release No. B007 for more info.