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					Analysis of the Legal Environment Governing Consumer Credit Practices
                               Final Report

                            Paul Ruschmann, J.D.
                            Susan Swantek, J.D.
                              Debora Slee, J.D.




                                Prepared For:

                         Federal Trade Commission
                              Washington, DC


                                Prepared By:

                     Mid-America Research Institute, Inc.
                             Ann Arbor, MI
                                          INTRODUCTION

This is Mid-America Research Institute's final report under Federal Trade Commission contract number
L1021, "Analysis of the Legal Environment Governing Consumer Credit Practices." This report
contains:
        • A national overview comparing state consumer credit practices laws against the provisions
        of the Federal Trade Commission's Consumer Protection Rule, 16 C. F. R. §§444.1-444.5
        (1985) ("the FTC Rule").
        • A set of state summaries detailing each state's pertinent laws (statutes, court decisions, and
        administrative regulations) dealing with: (a) each of the six consumer credit market practices
        governed by the FTC Rule; and (b) six additional consumer credit market practices not
        governed by the FTC Rule but nevertheless of interest to the FTC.

Background

On July 20, 1984, the Federal Trade Commission awarded Mid-America Research Institute a contract
to perform an analysis of the legal environment governing certain credit practices. Six such
practices--confessions of judgment; executory waivers of exemptions; irrevocable wage assignments;
nonpossessory, non-purchase money security interests; disclosure of cosigner liability; and pyramiding
of late charges--were addressed by the FTC Rule. Six other practices--acceleration; attorney fees
associated with debt collection; repossession practices; garnishment; third-party contacts made to
collect debts; and cross-collateral clauses--were not addressed by the FTC Rule but nevertheless were
of interest to the Commission.

The credit practices examined by Mid-America Research Institute were also of interest to researchers
at Arizona State University who are performing an econometric analysis of the impact of credit market
regulation. This report contains part of the data on which the Arizona State researchers will conduct
their analysis. Other data required by Arizona State were compiled by the Federal Reserve System.
Because Federal Reserve data were not available for 13 jurisdictions--Alaska, Delaware, District of
Columbia, Hawaii, Idaho, Kansas, Montana, Nevada, New Hampshire, New Mexico, North Dakota,
Rhode Island, Vermont, and Wyoming--it was agreed that Mid-America would not analyze and report
on those jurisdictions' laws.

Mid-America staff performed this study from August 1984 through May 1985 under the direction of
Paul A. Ruschmann, J.D., the project director. The work included:
        • Performing "traditional" legal research to locate pertinent statutes, regulations, and court
        decisions.
        • Contacting state administrative agencies responsible for consumer protection in general,
        regulation of financial institutions in particular, or both.
        • Analyzing state law governing the consumer credit practices of interest and comparing state
        law against the FTC Rule.
The research, state contacts, and analysis reported here were performed by Susan S. Swantek, J.D.,
and Debora A. Slee, J. D., senior staff attorneys at Mid-America Research Institute. Mid-America's
legal staff were assisted by the following University of Michigan Law School students: Clarissa Kimler,
Barbara Kramer, David Purcell, Kevin Recchia, and Milton Williams. Professor James J. White of the
University of Michigan Law School, a nationally-known authority on commercial law, served as
consultant to this project.

The remainder of this report consists of two sections. Section I contains the national overview. Section
II contains the state summaries in alphabetical order by jurisdiction.
                              SECTION I: NATIONAL OVERVIEW

The first portion of this section presents a series of six tables comparing state consumer-credit laws
against the provisions of the FTC Rule with respect to the six consumer credit practices addressed by
the FTC Rule:
        • Confessions of judgment in which a consumer waives his or her right to notice and hearing
        before suit has been started on the underlying obligation.
        • Executory waivers of exemptions from execution and levy.
        • Irrevocable wage assignments.
        • Nonpossessory, non-purchase money security interests in the consumer's household
        goods.
        • Failing to make a disclosure of a cosigner's would-be liability before the cosigner
        becomes obligated.
        • Accounting practices, such as the allocation of the consumer's installment payments, that
        constitute pyramiding of late charges.

The second portion of this section is a single chart comparing state law with respect to six consumer
credit market practices not governed by the final FTC Rule but nevertheless of interest to the
Commission staff. Those practices are:
        • Acceleration of consumer credit agreements.
        • Imposition of attorney fees in connection with enforcing consumer credit agreements after
        default.
        • Repossession rights, i.e., restrictions on the creditor's right to resell the repossessed
        collateral and then file an action for a deficiency judgment after repossessing and reselling it.
        • Garnishment of a consumer's wages after default on a consumer credit agreement.
        • Third-party contacts with the debtor's employer and other individuals to collect a debt.
        • Cross-collateral clauses in consumer credit agreements.

The six national overview tables dealing with credit practices governed by the FTC Rule are derived
from the 38 state summaries reported in Section II. They present, in the simplest form possible, the
status of state laws with respect to each of the six credit practices of interest. To make such a
presentation possible, Mid-America staff created a limited set of categories into which state laws could
be placed and then, on the basis of the research reported in the state summaries, assigned each state to
a category with respect to each of the credit practices.

The following general categories were developed for the six credit practices governed by the FTC Rule:
        • More restrictive than the FTC Rule. The state's laws not only meet all the criteria found in
        "Same as FTC Rule" below, but also prohibit a broader range of practices or affect a broader
        range of consumer credit transactions than the FTC Rule.
        With respect to confessions of judgment, state laws that prohibit confessions of
        judgment--either in general or in connection with all consumer credit transactions--are
        considered more restrictive than the FTC Rule.
       • Same as the FTC Rule. The state's laws are directed at the same evil (for example, wage
       assignments) as the FTC Rule, cover the same categories of transactions (at a minimum, small
       loans and installment transactions) as the FTC Rule, and in fact prohibit the practice (either by
       declaring it unfair or by denying it any legal effect).
       With respect to pyramiding of late charges, to be the same as the FTC Rule, a state provision
       must: limit the size of late charges; limit their imposition to once per delinquent installment; and
       mandate the allocation of payments to current installments first, then to delinquent ones.
       • Substantially similar to the FTC Rule. The state's laws are directed at the same evil and
       cover the same categories of transactions as the FTC Rule but, because of the language of the
       state's laws or the remedies provided, there is the possibility that a question of interpretation
       could arise.
       With respect to disclosure of cosigner liability, a disclosure provision is substantially similar to
       the FTC Rule if it requires disclosure at or before the time the cosigner becomes obligated. The
       language required by state laws is not identical to that mandated by the FTC Rule.
       • Not comparable to the FTC Rule. The state's laws impose some restriction on the credit
       practice, but those laws have one or more of the following shortcomings: they do not cover all
       categories of consumer credit transactions; they restrict, rather than prohibit, the credit practice
       of interest; or they impose procedural rather than substantive restrictions.
       • No provision. The state's laws are either silent or the only applicable provision is a Uniform
       Commercial Code provision that generally allows the practice.
Note: It was not necessary to use all of the five categories with respect to each credit practice; a lesser
number was sufficient to categorize state law with respect to most.

The national overview table dealing with the six additional practices was derived from telephone
contacts with personnel in state administrative agencies. The data reported by state agency personnel
knowledge are, to the best of Mid-America's knowledge, correct.

To prepare the table summarizing state law governing the six additional credit practices of interest, Mid-
America staff developed the following categories:
       • Allowed by state law (code=A on the table). State laws that are silent, or that impose purely
       procedural requirements regarding a consumer credit market practice, fall into this category.
       With respect to repossession, laws that allow repossession and resale without any substantive
       restrictions (including the Uniform Commercial Code provision requiring repossession and
       resale to be "reasonable') fall into this category.
       • Restricted by state law (code=R on the table) . State laws that impose substantive
       restrictions falling short of a prohibition fall into this category.
       With respect to repossession, state laws that limit deficiency judgments to the repossessed
       item's fair market value minus the sum received on resale, or to a fixed dollar amount, fall into
       this category.
       • Prohibited by state law (code=X on the table). State laws that prohibit the practice fall into
       this category.
       With respect to repossession, state laws that require the repossessing creditor to choose
       between reclaiming the collateral and suing on the underlying obligation fall into this category.
                                CREDIT MARKET PRACTICES
                                  NATIONAL ANALYSIS
                                          TABLE 1
                CONFESSIONS OF JUDGMENT; WAIVERS OF NOTICE AND HEARING
                                    16 C.F.R. §444.2(a)(1)

                    More
                  restrictive                 Substantially    Provision not
                  than FTC      Same as FTC   similar to FTC   comparable to      No
State                rule          rule            rule          FTC rule      provision

Alabama*                                                             x
Arizona                              x
Arkansas                                                                           x
California             x
Colorado               x
Connecticut            x
Florida*                                            x
Georgia                              x
Illinois               x
Indiana                x
Iowa*                                               x
Kentucky                             x
Louisiana*                           x
Maine                  x
Maryland               x
Massachusetts          x
Michigan               x
Minnesota                            x
Mississippi                          x
Missouri               x
Nebraska*                                                            x
New Jersey             x
New Mexico                           x
New York               x
No. Carolina           x
Ohio                   x
Oklahoma               x
Oregon                 x
Pennsylvania*                                                        x
So. Carolina           x
So. Dakota                                                                         x
Tennessee                            x
Texas                  x
Utah                   x
Virginia*              x
W. Virginia            x
Wisconsin              x
Wyoming                x
ALABAMA prohibits confessions of judgment in connection with small loans only. FLORIDA prohibits
confessions of judgment but its courts recognize foreign courts' judgments. IOWA prohibits confessions of
judgment unless executed after default on a claim. LOUISIANA provides for a procedure called executory process
that is specifically exempted from the coverage of the FTC rule. NEBRASKA prohibits confessions of judgment in
connection with installment loans, and loans made by industrial loan and investment companies. PENNSYLVANIA
prohibits confessions of judgment in connection with retail installment contracts, and generally restricts confession
of judgment procedures. VIRGINIA in effect gives the debtor the right to appear in court and contest a judgment
entered by confession, and prohibits confessions of judgment in connection with small loans.
                            CREDIT MARKET PRACTICES
                              NATIONAL ANALYSIS
                                      TABLE 2
                 EXECUTORY WAIVERS AND EXEMPTIONS FROM PROCESS
                                16 C.F.R. §444.2(a)(2)

                                   Substantially    Provision not
                  Same as FTC      similar to FTC   comparable to
State                rule               rule          FTC rule      No provision

Alabama*                                                  x
Arizona*                                                  x
Arkansas               x
California             x
Colorado               x
Connecticut                                                              x
Florida                x
Georgia*                                                  x
Illinois*                                x
Indiana                x
Iowa*                                                     x
Kentucky               x
Louisiana*                                                x
Maine*                                                    x
Maryland               x
Massachusetts*                                            x
Michigan*                                                 x
Minnesota*                               x
Mississippi*                             x
Missouri               x
Nebraska*                                x
New Jersey*                                               x
New Mexico*                                               x
New York*                                                 x
No. Carolina*                                             x
Ohio                   x
Oklahoma*                                                 x
Oregon                                                                   x
Pennsylvania           x
So. Carolina*                                             x
So. Dakota*                                               x
Tennessee*                               x
Texas*                                                    x
Utah                   x
Virginia*                                x
W. Virginia*                             x
Wisconsin              x
Wyoming*                                                  x
ALABAMA requires the debtor's signature and strictly construes the waiver. ARIZONA allows waiver of
homestead exemptions, but prohibits waiver of personalty exemptions. CONNECTICUT prohibits waivers in
connection with open-end and small loans only. GEORGIA allows waivers except with respect to a minimum amount
of property. ILLINOIS case law holds that executory agreements that waive debtors' exemptions are not valid. IOWA
allows waivers but its courts strictly construe them. LOUISIANA requires spouse consent to waiver of homestead
rights, and allows a debtor to give a chattel mortgage. MAINE in effect restricts waivers by prohibiting security
interests in the debtor's residence to secure debts of less than $1,000. MASSACHUSETTS requires spouse consent
to release homestead rights. MICHIGAN requires written consent of the debtor and his or her spouse when a waiver
is executed in connection with a small loan. MINNESOTA prohibits waivers in connection with consumer credit
sales, small loans, and motor vehicle installment contracts. MISSISSIPPI allows waivers by statute, but case law
appears to prohibit those waivers. NEBRASKA case law contains dicta to the effect that executory waivers of
exemptions are invalid. NEW JERSEY neither generally authorizes not generally prohibits waivers of exemptions, and
prohibits liens on real estate in connection with small loans and installment contracts. NEW MEXICO has no
statutory provisions that address the issue of waiver; case law has held that exemptions may be waived. NEW
YORK in effect restricts waivers by prohibiting all security interests in connection with installment loans, prohibiting
security interests in property other than the vehicle itself in connection with motor vehicle installment loans, and
prohibiting liens on real estate in connection with small loans other than second mortgages. In addition, New York
courts indicate that a waiver of exemption provision may be held unconscionable. NORTH CAROLINA substantially
allows waiver when: exempt property is transferred; the debtor executes a written waiver after judgment; or the
debtor fails to assert his or her exemptions after being given notice. OKLAHOMA case law allows waiver of
exemptions. SOUTH CAROLINA prohibits waivers of homestead exemptions. SOUTH DAKOTA prohibits waivers
of "absolute exemptions," which include the debtor's homestead and certain enumerated items of personalty (but not
household goods in general). TENNESSEE appears to prohibit waivers by case law. TEXAS prohibits liens on the
debtor's real estate in connection with small loans, installment loans, and installment and retail credit contracts.
VIRGINIA enumerates a lengthy list of household goods exempt from execution and for which the statutory
exemption cannot be waived. WEST VIRGINIA prohibits waiver of exemptions in connection with personalty.
WYOMING allows waivers by statute; however, dicta in early case law appears to prohibit waivers.
                             CREDIT MARKET PRACTICES
                                NATIONAL ANALYSIS
                                       TABLE 3
                          IRREVOCABLE WAGE ASSIGNMENTS
                                 16 C.F.R. §444.2(a)(3)

                                    Substantially    Provision not
                 Same as FTC        similar to FTC   comparable to
State               rule                 rule          FTC rule      No provision

Alabama               x
Arizona*                                                   x
Arkansas*                                                  x
California            x
Colorado              x
Connecticut*                                               x
Florida*                                                   x
Georgia                                                                   x
Illinois*                                                  x
Indiana               x
Iowa                  x
Kentucky*                                                  x
Louisiana*                                                 x
Maine                 x
Maryland*                                 x
Massachusetts*                                             x
Michigan              x
Minnesota*                                                 x
Mississippi*                                               x
Missouri              x
Nebraska*                                                  x
New Jersey                                                 x
New Mexico*                                                x
New York*                                                  x
No. Carolina*                                              x
Ohio                  x
Oklahoma              x
Oregon                x                                                   x
Pennsylvania          x
So. Carolina          x
So. Dakota*                                                x
Tennessee*                                                 x
Texas                 x
Utah                  x
Virginia              x
W. Virginia           x
Wisconsin             x
Wyoming               x
ARIZONA requires spouse consent, and limits the size and duration of the assignment. ARKANSAS requires
spouse and employer consent. CONNECTICUT prohibits assignments in connection with open-end and small loan
contracts. FLORIDA prohibits assignments in connection with consumer loans and home improvement contracts.
ILLINOIS restricts the size, duration, etc. of assignments. KENTUCKY prohibits assignments in connection with
motor vehicle installment contracts; and limits the size and duration of other assignments, and requires employer
consent. LOUISIANA requires employer consent. MARYLAND prohibits assignments with respect to consumer
loans and retail installment contracts. MASSACHUSETTS prohibits assignments in connection with installment
(including motor vehicle) sales; and limits the size and duration of, and requires spouse and employer consent to,
other assignments. MINNESOTA prohibits assignments in connection with consumer credit sales and loans of
greater than $1,200, and generally restricts assignments. MISSISSIPPI requires employer consent, and prohibits
assignments by members of the state militia. NEBRASKA requires spouse consent, and limits the amount of wages
assigned; and prohibits the assignment of wages otherwise exempt from execution. NEW JERSEY has conflicting
statutory provisions regarding assignments in connection with small loans. NEW MEXICO prohibits assignments in
connection with retail installment contracts, requires spouse consent to assignments given in connection with small
loans; and limits the size of assignments in general. NEW YORK prohibits assignments in connection with
installment (including motor vehicle) sales, and retail installment credit agreements; and generally restricts other
assignments. NORTH CAROLINA prohibits assignments in connection with consumer loans. SOUTH DAKOTA
limits the size of, and requires employer consent to, assignments. TENNESSEE requires employer consent to
assignments.
                               CREDIT MARKET PRACTICES
                                  NATIONAL ANALYSIS
                                         TABLE 4
        NONPOSSESSORY, NON-PURCHASE MONEY SECURITY INTERESTS IN HOUSEHOLD GOODS
                                   16 C.F.R. §444.2(a)(4)

                                       Substantially     Provision not
                     Same as FTC       similar to FTC    comparable to
State                   rule                rule           FTC rule        No provision

Alabama                                                                           x
Arizona*                                                       x
Arkansas                                                                          x
California*                                                    x
Colorado*                                                      x
Connecticut               x
Florida                                                                           x
Georgia*                                                       x
Illinois*                                                      x
Indiana*                                                       x
Iowa                      x
Kentucky*                                                      x
Louisiana*                                                     x
Maine*                                                         x
Maryland*                                                      x
Massachusetts*                                                 x
Michigan                                                                          x
Minnesota*                                   x
Mississippi                                                                       x
Missouri*                                    x
Nebraska*                                                                         x
New Jersey*                                                    x
New Mexico*                                                    x
New York*                                                      x
No. Carolina              x
Ohio*                                                          x
Oklahoma*                                                      x
Oregon                    x
Pennsylvania                                                                      x
So. Carolina*                                                  x
So. Dakota                                                     x
Tennessee                                                                         x
Texas                                                                             x
Utah*                                                          x
Virginia*                                    x
W. Virginia*                                                   x
Wisconsin                 x
Wyoming*                                                       x
ARIZONA prohibits security interests in connection with consumer credit sales, and restricts security interests in
connection with consumer loans. CALIFORNIA prohibits security interests in connection with installment (including
motor vehicle) sales. COLORADO prohibits security interests in connection with consumer credit sales, and imposes
certain other restrictions. GEORGIA restricts security interests when taken in connection with retail installment or
certain revolving accounts. ILLINOIS requires disclosure of the security interest, and requires spouse consent, in
connection with small loans. INDIANA prohibits security interests in connection with consumer credit sales, and
loans of less than $1,000. KENTUCKY prohibits security interests in connection with motor vehicle installment
contracts. LOUISIANA case law allows security interests, which are called "chattel mortgages." MAINE prohibits
security interests taken in connection with certain consumer credit sales. MARYLAND prohibits security interests in
personal property in connection with a loan of less than $700. MASSACHUSETTS prohibits security interests in
connection with motor vehicle installment and retail sale agreements. MINNESOTA voids the first $4,500 of a
security interest taken in connection with a non-purchase money security interest. MISSOURI prohibits security
interests in connection with loans and consumer credit transactions of less than $150, and prohibits the giving of
security interests in general terms (e g., "household goods"). NEW JERSEY requires spouse consent to security
interests executed in connection with small loans. NEW MEXICO requires spouse consent to security interests
executed in connection with small loans. NEW YORK prohibits security interests in connection with retail installment
credit agreements, and imposes restrictions on security interests in connection with loans. OHIO prohibits security
interests in connection with retail installment contracts. OKLAHOMA prohibits security interests in connection with
consumer credit sales and leases. SOUTH CAROLINA prohibits security interests in connection with consumer
credit sales, and requires consent of the debtor and his or her spouse in connection with restricted loans. SOUTH
DAKOTA requires, in connection with open-end loans, that the lender release a security interest if there is no
outstanding balance on the loan. UTAH prohibits security interests in connection with consumer sales and leases,
and prohibits security interests in land in connection with supervised loans of $2,800 or less. VIRGINIA prohibits
security interests in exempt property (which includes many household goods), prohibits security interests in a
debtor's real estate in connection with small loans, and requires the debtor's consent to a lien on his or her
household furniture in connection with small loans. WEST VIRGINIA prohibits security interests in land or
household goods in connection with supervised loans; and prohibits a credit card issuer from taking a security
interest in the cardholder's property to secure a lease, or from taking a non-purchase money security interest.
WYOMING prohibits security interests in connection with consumer credit sales of less than $300 if the debt is
secured by an interest in goods, and of less than $1,000 if the debt is secured by an interest in land.
                                          CREDIT MARKET PRACTICES
                                            NATIONAL ANALYSIS
                                                   TABLE 5
                                      DISCLOSURE OF COSIGNER LIABILITY
                                                16 C.F.R. §444.4

              State                        Substantially similar to FTC rule                   No provision

Alabama                                                                                              x
Arizona                                                                                              x
Arkansas                                                                                             x
California                                                 x
Colorado                                                   x
Connecticut                                                                                          x
Florida                                                                                              x
Georgia                                                                                              x
Illinois*                                                  x
Indiana                                                                                              x
Iowa                                                       x
Kentucky                                                                                             x
Louisiana                                                                                            x
Maine                                                      x
Maryland                                                                                             x
Massachusetts                                                                                        x
Michigan                                                                                             x
Minnesota                                                                                            x
Mississippi                                                                                          x
Missouri                                                   x
Nebraska                                                                                             x
New Jersey                                                                                           x
New Mexico                                                                                           x
New York                                                   x
No. Carolina                                                                                         x
Ohio                                                                                                 x
Oklahoma                                                                                             x
Oregon                                                                                               x
Pennsylvania                                                                                         x
So. Carolina                                               x
So. Dakota                                                                                           x
Tennessee                                                                                            x
Texas                                                                                                x
Utah                                                                                                 x
Virginia                                                                                             x
W. Virginia                                                x
Wisconsin                                                  x
Wyoming                                                                                              x



ILLINOIS requires disclosure in connection with retail installment (including motor vehicle) contracts only.
                           CREDIT MARKET PRACTICES
                              NATIONAL ANALYSIS
                                    TABLE 6
                          PYRAMIDING OF LATE CHARGES
                                 16 C.F.R. §444.4

                                  Substantially        Provision not
                Same as FTC       similar to FTC       comparable to
State              rule                rule              FTC rule      No provision

Alabama              x
Arizona*                                                     x
Arkansas                                                                    x
California           x
Colorado             x
Connecticut*                                                 x
Florida*                                                     x
Georgia              x
Illinois             x
Indiana              x
Iowa                 x
Kentucky*                                                    x
Louisiana            x
Maine*                                                       x
Maryland*                                                    x
Massachusetts                                                x
Michigan*                                                    x
Minnesota*                                                   x
Mississippi          x
Missouri*                                                    x
Nebraska*                                                    x
New Jersey*                                                  x
New Mexico*                                                  x
New York             x
No. Carolina         x
Ohio*                                                        x
Oklahoma             x
Oregon*                                                      x
Pennsylvania*                                                x
So. Carolina         x
So. Dakota*                             x
Tennessee
Texas*                                                       x
Utah                 x
Virginia*                                                    x              x
W. Virginia          x
Wisconsin            x
Wyoming              x
The following states restrict the size of late charges, but do not govern the allocation of payments, or limit the lender
to imposing a late charge once only:
       Connecticut
       Florida
       Kentucky
       Massachusetts
       Minnesota
       Nebraska

ARIZONA in effect limits charges in connection with retail installment contracts under its usury statute; appears to
prohibit late charges in connection with consumer loans; and limits the size of charges in connection with motor
vehicle installment sales, but does not govern the allocation of payments. MAINE prohibits pyramiding in
connection with precomputed consumer transactions and consumer leases. MARYLAND limits the number of
charges and, through the usury law, limits the eventual size of those charges; and restricts the size of charges
imposed in connection with installment contracts without governing the allocation of payments. MICHIGAN
restricts the size of late charges in general, and restricts the allocation of late charges in connection with home
improvement contracts. MISSOURI restricts the size of late charges, and limits the imposition of charges to once
only, in general; and also governs the allocation of payments in connection with second mortgages. NEW JERSEY
limits the size of late charges in connection with retail installment and home repair contracts. NEW MEXICO limits
the size of charges in connection with installment (including motor vehicle) transactions, and limits the size of late
charges and the number of times a late charge may be imposed in connection with small loans. OHIO prohibits late
charges in connection with revolving budget agreements; prohibits pyramiding in connection with precomputed
loans, restricts the size of late charges and limits their imposition to once per default in connection with retail
installment sales contracts, and limits the size of late charges in connection with second mortgages. OREGON
prohibits pyramiding in connection with loans, restricts late charges in connection with retail installment contracts,
and motor vehicle and mobile home installment contracts. PENNSYLVANIA limits the size of late charges in general,
and limits the number of times a late charge may be imposed in connection with home improvement and retail
installment contracts. SOUTH DAKOTA prohibits late charges in connection with small loans, prohibits pyramiding
in connection with installment contracts, and restricts only the size of late charges in connection with motor vehicle
installment contracts. TEXAS limits the size of late charges in connection with small loans, and limits the size of late
charges and the number of times a late charge may be imposed in connection with retail installment and retail charge
agreements. VIRGINIA restricts the size of late charges in connection with closed-end installment plans and
consumer goods leases; and restricts the size of charges, and limits their imposition to once only in connection with
small loans.
                               CREDIT MARKET PRACTICES
                                  NATIONAL ANALYSIS
                                        TABLE 7
                          SIX CREDIT PRACTICES NOT GOVERNED
                                    BY THE FTC RULE


                               Atty.                              3d     Cross
     State       Accel.        Fees        Repos        Garnis   Party   Coll.
                                             s.           h
Alabama           A             R                                 A       A
Arizona           A             A            A           R        A       A
Arkansas*         A             A            A           R        R*      A
California*       R             A            A           R        R       A
Colorado*         R             A           X/R*         R        R*      X
Connecticut       X             R            R           R        R       A
Florida*          A             R            R           R        A       R
Georgia           A             A           X/R*         X        R       A
Illinois          R             A            A           A        R       A
Indiana           X             A            A           R        A       R
Iowa              X             R            A           R        R       R
Kentucky          A             R            R           R        A       A
Louisiana         R             R            A           A        R       A
Maine             R             X            A           R        R       X
Maryland          A             A            R           R        R       A
Massachusetts     A             A            A           R        R       X
Michigan          A             A            R           R        R       A
Minnesota*        A*            A            A           R        R       A
Mississippi*      A             A            R           R        R*      A
Missouri*         R            X/R*          A           A        A       A
Nebraska*        X/R*           A            R           A*       R       R
New Jersey        A             A            A           R        R       A
New Mexico        X             R            A           R        R       R
New York          A             A            R           A        R       X
North Carolina    A             A            R           R        X       X
Ohio              R             R            A           X        A       R
Oklahoma          R             R            R           R        R*      R
Oregon*           A*            A            R           R        R       R
Pennsylvania      R             A            R           R        R*      A
So. Carolina*     R             R            R           A        R       R
So. Dakota*       A             A            R           R        R*      A
Tennessee         A             A            R           X        R       A
Texas             A             R            A           A        R       A
Utah              A             A            R           X        A       R
Virginia          R             A            R           R        A       A
W. Virginia       R             A            A           R        X       A
Wisconsin         R             R            R           R        R       R
Wyoming*          A             R            X           R        R*      R
                                             A           R
With respect to third-party contacts, the following states have adopted the Federal Fair Debt Collection Practices
Act:
       Arkansas
       Colorado
       Minnesota
       Mississippi
       Oklahoma
       South Carolina
       South Dakota
       Wyoming

With respect to the five other consumer credit market practices: CALIFORNIA limits deficiency judgments to the
amount realized minus the collateral's fair market value in connection with some consumer credit practices, and
requires the creditor to choose between repossession and suit in connection with others. FLORIDA limits deficiency
judgments to the amount realized minus the collateral's fair market value in connection with some consumer credit
practices, and requires the creditor to choose between repossession and suit in connection with others.
MINNESOTA limits acceleration through its Uniform Commercial Code provisions only. MISSOURI prohibits the
collection of attorney fees in connection with some, and restricts acceleration with respect to other, consumer credit
practices; and limits garnishment through federal law and its Uniform Commercial Code provisions only.
NEBRASKA prohibits acceleration in connection with some, and restricts acceleration with respect to other,
consumer credit practices. OREGON limits acceleration through its Uniform Commercial Code provisions only.

				
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