What are the Prohibited Contract Provisions in the Credit Practices Rule?
Certain consumer provisions, which you may have used in consumer credit contracts, are now prohibited. These include: confessions of judgment; waivers of exemption; wage assignments; and security interests in household goods. If your consumer credit contracts contain language that requires a debtor to confess judgment, to waive exemptions, to assign wages or income, or to give you a blanket security interest in all household goods, you should remove that language from all contracts signed on or after March 1, 1985. If you have not done so, you are in violation of the Rule.
For more information, see here: https://www.ftc.gov/tips-advice/business-center/guidance/complying-credit-practices-rule
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