Waiver of Exemption

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Waiver of Exemption

A clause in a credit card or other lending agreement stating that the creditor may seize certain assets of the debtor in the event of default, even if local law ordinarily exempts such assets from seizure. Waivers of exemption reduced the risk to the creditor, but were considered unfair to the debtor. As a result, the Federal Trade Commission does not permit them to be used.