Federal regulation prohibits a credit seller or lender from obtaining a nonpossessory security interest in household goods if the interest is not a purchase money security interest.

Question

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Federal regulations, specifically the Federal Trade Commission's Credit Practices Rule, restrict creditors from taking a nonpossessory security interest in household goods unless it is a purchase money security interest, to protect consumers from losing essential household items.

Federal Regulation Prohibits a Credit Seller or Lender from Obtaining