[Code of Federal Regulations]
[Title 16, Volume 1]
[Revised as of January 1, 2005]
From the U.S. Government Printing Office via GPO Access
[CITE: 16CFR444.2]

[Page 447-448]
 
                     TITLE 16--COMMERCIAL PRACTICES
 
                   CHAPTER I--FEDERAL TRADE COMMISSION
 
PART 444_CREDIT PRACTICES--Table of Contents
 
Sec. 444.2  Unfair credit 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 an unfair act or practice within the meaning of 
Section 5 of that Act for a lender or retail installment seller directly 
or indirectly to take or receive from a consumer an obligation that:
    (1) Constitutes or contains a cognovit or confession of judgment 
(for purposes other than executory process in the State of Louisiana), 
warrant of attorney, or other waiver of the right to notice and the 
opportunity to be heard in the event of suit or process thereon.
    (2) Constitutes or contains an executory waiver or a limitation of 
exemption from attachment, execution, or other process on real or 
personal property held, owned by, or due to the consumer, unless the 
waiver applies solely to property subject to a security interest 
executed in connection with the obligation.

[[Page 448]]

    (3) Constitutes or contains an assignment of wages or other earnings 
unless:
    (i) The assignment by its terms is revocable at the will of the 
debtor, or
    (ii) The assignment is a payroll deduction plan or preauthorized 
payment plan, commencing at the time of the transaction, in which the 
consumer authorizes a series of wage deductions as a method of making 
each payment, or
    (iii) The assignment applies only to wages or other earnings already 
earned at the time of the assignment.
    (4) Constitutes or contains a nonpossessory security interest in 
household goods other than a purchase money security interest.
    (b) [Reserved]