Questions & Answers

How are Penalties Assessed in the Credit Practices Rule?

How are Penalties Assessed in the Credit Practices Rule? 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. For more information...

How do I Keep Information Secure according to the Fair Credit Reporting Act?

How do I Keep Information Secure according to the Fair Credit Reporting Act? Fair Credit Reporting Act — Also known as the FCRA, this law is designed primarily to protect the privacy of what it calls “consumer report” information — the details in a consumer’s credit report — and to guarantee that...

How does the Credit Practices Rule Affects Consumer Contracts?

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...

What are the Notice to Cosigners Required in the Credit Practices Rule?

What are the Notice to Cosigners Required in the Credit Practices Rule? If you require a cosigner for a loan applicant who does not meet your standards of creditworthiness or for debtors in default, the Rule requires you to inform each cosigner of the potential liability involved before the...

What are the Penalties in the FACTA Disposal Rule?

What are the Penalties in the FACTA Disposal Rule? The Disposal Rule, as part of the Fair and Accurate Credit Transactions Act ("FACTA") amendment to the Fair Credit Reporting Act ("FCRA"), imposes penalties for non-compliance with the disposal provisions, as with violations of any other FCRA...

What are the Penalties in the Gramm-Leach-Bliley Financial Modernization Act?

What are the Penalties in the Gramm-Leach-Bliley Financial Modernization Act? Enforced by Federal Trade Commission and an array of financial agencies. Depending on the agency involved, penalties can include: injunctions cease and desist orders, consent decrees and fines ranging from eleven thousand...

What are the Prohibited Contract Provisions in the Credit Practices Rule?

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...

What are Unfair or Deceptive Cosigner Practices?

What are Unfair or Deceptive Cosigner Practices? §444.3 Unfair or deceptive cosigner practices. (a) In connection with the extension of credit to consumers in or affecting commerce, as commerce is defined in the Federal Trade Commission Act, it is: (1) A deceptive act or practice within the meaning...

What Information Must be Included in Ads for Consumer Credit?

What Information Must be Included in Ads for Consumer Credit? According to the Truth in Lending Act and other federal and state laws, ads for consumer credit must include certain disclosures about the terms and conditions of credit. These laws specifically require the disclosures to be "clear and...

What is the Credit Repair Organizations Act (“CROA”)?

What is the Credit Repair Organizations Act (“CROA”)? According to the FTC, the CROA, 15 U.S.C. § 1679, et. seq., prohibits a variety of false and misleading statements, as well as fraud by credit repair organizations (CROs). CROs may not receive payment before any promised service is “fully...

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