How does the Credit Practices Rule Affects Consumer Contracts?
The Credit Practices Trade Regulation Rule has three major provisions. First, it prohibits creditors from using certain contract provisions that the Federal Trade Commission found to be unfair to consumers. The prohibited contract provisions are confessions of judgment, waivers of exemption, wage assignments, and security interests in household goods. Second, the Rule requires creditors to advise consumers who cosign obligations about their potential liability if the other person fails to pay. Third, the Rule prohibits late charges in some situations.
For more information, see here: https://www.ftc.gov/tips-advice/business-center/guidance/complying-credit-practices-rule
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