Uniform Consumer Credit Code (UCCC) Explained: Key Facts, History & Adoption in 2025

Julia Kagan is a financial and consumer journalist and former senior editor for personal finance at Investopedia.

What Is the Uniform Consumer Credit Code (UCCC)?

The Uniform Consumer Credit Code (UCCC) is a comprehensive legal framework designed to regulate consumer credit transactions across multiple states. Adopted by 11 states, it sets forth clear rules governing a wide range of credit products, from credit cards to mortgages, with the primary goal of protecting consumers against fraud and unfair lending practices.

Key Highlights

• The UCCC aims to prevent deceptive and abusive practices in consumer credit.
• It has been officially adopted by 11 states, with others integrating parts of it into their own credit laws.
• The code outlines guidelines on interest rate limits, safeguards against usury, and mandates fair lending contracts.

How Does the Uniform Consumer Credit Code Function?

Originally approved in 1968 by the National Conference of Commissioners on Uniform State Laws and updated in 1974, the UCCC serves as a model law rather than a federal statute. States can adopt it wholly or partially to create consistent credit regulations.

As of 2024, the states that have fully adopted the UCCC include Colorado, Idaho, Indiana, Iowa, Kansas, Maine, Oklahoma, South Carolina, Utah, Wisconsin, and Wyoming. Several other states have incorporated select provisions into their consumer credit laws.

A core feature of the UCCC is the regulation of interest rates, which vary depending on the credit type but generally cap excessive charges. By lowering barriers to entry for lenders, the code promotes competition, which can help reduce consumer interest rates.

The UCCC also prohibits unfair contract clauses, such as waiver-of-defense provisions that strip borrowers of their legal rights in disputes. It restricts unconscionable transactions—those overwhelmingly one-sided agreements that could include misleading warranties or deceptive product claims.

Some federal laws now override certain UCCC provisions. For example, the Fair Debt Collection Practices Act (FDCPA) governs debt collection practices, while the Truth in Lending Act (TILA) regulates loan term disclosures.

History and Evolution of the UCCC

Established in 1968 to shield consumers from predatory credit practices, the UCCC was revised in 1974 to adapt to the evolving financial landscape. The rise of credit cards, which were relatively new at the time, highlighted the code’s importance in consumer protection. Today, the UCCC mandates that credit card issuers are liable for claims consumers make against merchants.

While the UCCC covers many credit types, some modern financial arrangements, such as income-share agreements (ISAs) used by universities like Purdue, remain exempt. These agreements involve educational institutions funding student expenses in return for a share of future income.

The UCCC was developed by the National Conference of Commissioners on Uniform State Laws, also known as the Uniform Law Commission (ULC). Founded in 1892, the ULC drafts uniform laws to promote consistency across states. Its membership includes over 300 commissioners appointed by states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands—all legal professionals.

The ULC has produced more than 300 uniform acts, including the UCCC and the Uniform Commercial Code (UCC), which standardizes interstate business transactions and is universally adopted across the U.S.

Other uniform acts by the ULC address family law, real estate, probate, commercial law, dispute resolution, trusts, and estate law.

Appointment of Commissioners to the Uniform Law Commission

Each jurisdiction determines how it appoints its commissioners to the ULC. Typically, governors appoint commissioners for set terms, though in some states, commissioners serve at the discretion of the appointing authority without fixed terms. All commissioners volunteer their services without salary or compensation.

Uniform Codes vs. Model Acts

Uniform codes, like the UCCC, are drafted by the ULC and can be adopted fully or partially by state legislatures. Model acts, conversely, can be created by anyone and usually serve only as guidelines rather than binding laws. The ULC also drafts model acts.

Federal Protections for Credit Card Users

Credit card holders benefit from various federal protections, including the Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act), which amended the Truth in Lending Act. The CARD Act enhances transparency regarding credit terms and limits lender fees.

Conclusion

The Uniform Consumer Credit Code (UCCC) provides vital legal protections for consumers using credit in states where it is enacted. It complements federal laws aimed at ensuring fair and transparent credit practices, helping safeguard borrowers from unfair treatment in the evolving financial marketplace.

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