The Federal Trade Commission's Credit Practices Rule bars creditors from including certain provisions in most kinds of credit contracts. Therefore, anyone who borrows money, buys items on installment credit, or cosigns for another's debt should know about the Credit Practices Rule ("the Rule").
Consumer credit contracts offered by the following must comply with the Rule:
It does not apply to:
There are certain provisions that cannot be included in consumer credit contracts:
If you believe your creditor is violating the Rule, you can file a complaint with the Federal Trade Commission (FTC).
You can be charged a late fee if you do not make your payments on time. However, you cannot be charged late fees just because you have not paid a late fee that you owe ("pyramiding late fees"). Thus, a creditor cannot subtract a late fee from your payment and then charge you another late fee for the current payment. It is advised that you bring your account up to date.
A qualified lawyer can inform you of the creditor's responsibilities and your rights under the Rule. A lawyer can also tell you what your obligations are and how you can avoid any credit problems. A lawyer can also help you if you decide to pursue a complaint against the creditor.
Last Modified: 07-02-2014 04:42 PM PDTLaw Library Disclaimer
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