Unfair or Deceptive Acts or Practices (Credit Practices Rule)

Banks and creditors are prohibited from using certain contract provisions deemed unfair to consumers. Prohibited terms include confession of judgment clauses, waivers of exemptions from attachment, assignments of wages, and non-possessory security interests in household goods.

Creditors must also provide cosigners with a notice informing them of the potential liabilities before they assume responsibility for another person's debt. The notice must state that the cosigner may be asked to pay the full amount owed.