What Is Credit Practices Rules?

The Credit Practices Rule prohibits lenders from using certain remedies, such as confessions of judgment; wage assignments; and non­possessory, non­purchase money, security interests in household goods. The rule also prohibits lenders from misrepresenting a cosigner's liability and requires that lenders provide cosigners with a notice explaining their credit obligation as a cosigner. It also prohibits the pyramiding of late charges.

The information on this page is meant to provide a general overview of the law. The laws in your state and/or city may deviate significantly from those described here. If you have specific questions related to your situation you should speak with a local attorney.

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