Repossessions: 3.3.4.1 Generally
The Federal Trade Commission’s Trade Regulation Rule Concerning Credit Practices (FTC Rule)210 and a related federal interagency guidance211 prohibit non-possessory, non-purchase-money security interests in consumers’ household goods. The FTC Rule does not apply to possessory security interests such as pawns, to purchase-money security interests, or to collateral other than household goods. In addition, it has a relatively narrow definition of the “household goods” that are protected.