Infographic: 3 Major Provisions Of The Credit Practices Rule
Are you a finance company, retailer (such as an auto dealer, furniture or department store), or a credit union that offers consumer credit contracts? If you so, you fall into the category of a creditor that is subject to the jurisdiction of the FTC (Federal Trade Commission) and therefore you must comply with the Credit Practices Trade Regulation Rule.
What Transactions Are Covered?
The Rule covers all consumer credit transactions, except those involving the purchase of real estate.
The Federal Trade Commission can sue violators of the Credit Practices Rule in federal court. The court can impose civil penalties of up to $16,000 for each violation and can issue an order prohibiting further violations.
Just a Reminder: We’re not your lawyer (of course, right?) Since we’re not, remember that this article’s for informational purposes and not intended to provide legal advice.
The information above is an excerpt from a policy provided by one of our partners, ThinkHR. We work with them and other industry experts to make sure we are providing accurate and current information, and we manage that information in an online Compliance Management System. One of the benefits of using a Compliance Management System is that it houses all the policies and guidelines you need to be aware of for your industry so you don’t have to go hunting down information; it is simply at your fingertips.