Law adopted in some states setting standards for consumer credit agreements. The code, applying to consumer credit agreements and installment sales contracts for amounts under $25,000, specifies creditor's remedies when a borrower defaults, and contains borrower protections against unfair or unlawful practices by a creditor.

Several states have in addition adopted their own versions of the federal Truth in Lending Act to protect borrowers' rights and equal access to credit.

Dictionary of Banking Terms. Copyright © 2006 by Barron's Educational Series, Inc. All rights reserved.