CFPB Temporarily Delays Prohibition on Financincing of Single Premium Insurance

On Tuesday May 7, 2013, the Consumer Financial Protection Bureau (CFPB) issued a proposed rule that would temporarily delay the effective date on the prohibition on creditors financing single premium credit insurance products.

The temporary delay would permit the CFPB to clarify the rules applicability to transactions other than those in which a lump-sum premium is added to the loan amount at closing.  Credit unions would benefit from the delay since it would eliminate any disruptions in the provision of credit insurance products to members while interpretive questions to the rule are addressed.

Credit unions will have 15 days to submit comments after the proposed rule is published in the Federal Register.

 

Questions? Contact the Compliance Hotline: 1.800.546.4465, compliance@nwcua.org.

 

Posted in Compliance.