Unfair or Deceptive Credit Acts or Practices Rule - Regulation AA
The Credit Practices Rule prohibits practices in connection with consumer credit transactions that have been found to be "unfair or deceptive practices". The regulation specifically states that the following are considered unfair or deceptive practices:

1. Prohibiting the inclusion of the following clauses and terms in the credit contract or the enforcement of those provisions in any purchased contracts

• confession of judgment
• waivers of exemptions from judgment and execution
• unrescindable assignments of future wages unless part of a payroll deduction or pre-authorized payment plan

2. Prohibiting Eastern Bank from taking non-possessory security interests in household goods unless the credit is used to purchase the goods
3. Prohibiting the pyramiding of late charges on a single late payment
4. Requires notice to a co-signer, prior to becoming obligated, explaining the nature of the co-signers obligations under the documents

NOTE: A "co-signer" for the purpose of this rule, is any person whose signature is requested as a condition for granting credit or forbearing collection on a loan in default. The co-signer does not receive the proceeds of the loan, or in the case of an open-end credit line, have the right to receive future credit. A spouse, or other party, who signs credit documentation only to perfect a security interest in the property is not a co-signer.

Let's see how Regulation AA applies to you when dealing with a co-signer.

Provide appropriate documents to the co-signer at closing.
When closing a loan you need to make sure that the co-signer has been provided the co-signer disclosure statement prior to signing the loan documents. If this information is not included in the closing package, contact the Help Line immediately.