What Is the Uniform Consumer Credit Code?

The Uniform Consumer Credit Code (UCCC) is a body of business regulations designed to protect consumers. It does this by governing credit transactions, including rates, access, and collection practices. It aims to promote fairness and clarity and to simplify the relationships between creditors and consumers. This body of regulations is a model and is not obligatory in any jurisdiction. It may be adopted in full, in part, or not at all.

The National Conference of Commissioners on Uniform State Laws is a group in the United States that develops legislation that may be adopted as state law. The Uniform Consumer Credit Code, approved in 1968, is one body of work produced by this group. Due to changes in consumer credit practices, revisions have been made to the original version. Most fundamental aspects remain the same, as does the ultimate goal, which is to protect consumers.

UCCC regulations govern different types of relationships between creditors and consumers. The legislation is not solely focused on any one type of relationship. Its focus includes interaction between consumers and credit card companies, merchants, and banks. The protection provided by the UCCC does not, however, extend to business credit transactions.

There is a wide range of consumer protections outlined in the Uniform Consumer Credit Code. One of the more significant measures limits the rates of interest that can be charged on credit transactions. The UCCC contains unconscionability provisions, which address practices that can be considered grossly unfair or fraudulent. This focus even extends to include collection practices.

Other areas that are covered by the Uniform Consumer Credit Code include deficiency judgments and the computation of finance charges. There are attempts in the code to encourage competition so that consumers will have access to fair prices. It is apparent from the contents of the UCCC that its drafters believed that simplicity and clarity are of benefit to consumers.

This body of legislation is considered a model statute. This means that it provides a guideline for those states that may be interested in applying it. The National Conference of Commissioners of State Laws does not have the authority to impose its regulations upon any jurisdiction. A number of states have adopted the the Uniform Consumer Code in its entirety, while some states have adopted portions of the code. Then there are other states that have developed their own consumer protections laws, which are notably similar to the UCCC.