(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.
(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]
Notes of Decisions
Fed. Trade Comm'n v. Loanpointe, LLC, 525 F. App'x 696 (10th Cir. 2013).
· cites it 3× “§ 45 , and its regulations, see 16 C.F.R. § 444.2 , as well as the Fair Debt Collection Practices Act (“FDCPA”), see 15 U.”
Fed. Trade Comm'n v. Payday Fin. LLC, 989 F. Supp. 2d 799 (D.S.D. 2013).
· cites it 2× “16 C.F.R. § 444.2 (a)(3). The wage assignment clause that was in some of PayDay Financial LLC’s loan agreements does not satisfy the exceptions contained in § 444.”
Zhang v. Se. Fin. Grp., Inc., 980 F. Supp. 787 (E.D. Pa. 1997).
· cites it 2× “§ 1983 for confessing judgment and executing against her property in violation of due process, the FDCPA and 16 C.F.R. § 444.2 . In Count IV plaintiff seeks rescissionary relief as to the service agreement and note.”
In Re Souders, 75 B.R. 427 (Bankr. E.D. Pa. 1987).
“7748-55 (March 1, 1984), when it issued a Credit Practices Rule, 16 C.F.R. § 444.2 (a)(1), which declared it an unfair trade practice “to take or receive from a consumer an obligation that .”
In Re Vale, 110 B.R. 396 (Bankr. N.D. Ind. 1989).
“16 C.F.R. § 444.2 (a)(4) (1985). This highly restrictive definition is not an act of Congress that is binding upon a Bankruptcy Court.”
Sanborn Sav. Bank v. Connie Freed, 38 F.4th 672 (8th Cir. 2022).
“Public Policy Connie contends the Mortgage forces her to waive her homestead rights in contravention of public policy, which is codified in the unfair credit practices regulations at 16 C.F.R. § 444.2 . Section 444.2 is a Federal Trade Commission (“FTC”) regulation that, by its…”
Dean v. Am. Gen. Fin., Inc., 191 B.R. 463 (M.D. Ala. 1996).
“Accordingly, this court will proceed, for purposes of remand, under the assumption that the Plaintiffs are alleging a violation of the FTCA, specifically the prohibition contained in 16 C.F.R. § 444.2 (a)(4), made unlawful by 15 U.”
In Re Rosol, 114 B.R. 560 (Bankr. N.D. Ill. 1989).
“(1987), and the Federal Trade Commission (“FTC”) Credit Practice Regulations, 16 C.F.R. § 444.2 (3) (1984). Before the FTC regulations in 1984, Illinois wage assignments were “a customary form of security required of an employee seeking credit either from pawnbrokers,…”
Swanson v. Montello State Bank (In Re Hill), 210 B.R. 1016 (Bankr. E.D. Wis. 1997).
“2(a)(4), or 16 CFR 444.2(a)(4), if any, a lender may not take a security interest, other than a purchase money security interest, in: (b) Real property if the obligation secured is less than $1,000.”
— 16 C.F.R. § 444.2(a)(3)(i) — 1 case
Fed. Trade Comm'n v. Payday Fin. LLC, 989 F. Supp. 2d 799 (D.S.D. 2013).
“16 C.F.R. § 444.2 (a)(3). The wage assignment clause that was in some of PayDay Financial LLC’s loan agreements does not satisfy the exceptions contained in § 444.”
— 16 C.F.R. § 444.2(a)(4) — 2 cases
Swanson v. Montello State Bank (In Re Hill), 210 B.R. 1016 (Bankr. E.D. Wis. 1997).
“2(a)(4), or 16 CFR 444.2(a)(4), if any, a lender may not take a security interest, other than a purchase money security interest, in: (b) Real property if the obligation secured is less than $1,000.”
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