Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive

News Now

CU System
Mich. OFIR clarifies single premium debt cancellations
NORTHVILLE TOWNSHIP, Mich. (7/22/08)--Michigan's Office of Financial and Insurance Regulation (OFIR) has clarified its position on debt cancellation contracts (DCC) offered by the state's credit unions and other depository institutions. The Michigan Credit Union League, working with CUNA Mutual Group, had requested that OFIR clarify its 2004 declaratory ruling, which authorized depository institutions to use the contracts and debt suspension agreements without being subject to the Insurance Code. (Michigan Monitor July 21). In the ruling, OFIR said if depositories complied with an Office of the Comptroller of the Currency regulation on the subject, OFIR would consider them operating in a safe and sound manner. It also said that unless a periodic premium payment plan also was offered, the depository could not offer a single or lump sum premium plan. The new bulletin, issued July 11, supersedes the first ruling. "The commissioner has concluded that state-chartered depository institutions do not have to offer a customer the option of paying the fee for a DCC in monthly or other periodic payments when the product is what is commonly known as GAP ('guaranteed auto' or 'guaranteed asset' protection) coverage or waiver," the new bulletin said. The position is similar to that taken by a small but growing number of states, said the league.


RSS print
News Now LiveWire
Learn how to stay competitive with new research blog from @CUNA's econ/statistics dept in Wed's #NewsNow
10 hours ago
#FOMC meeting watch: Change in forward guidance expected #Market #NewsNow http://t.co/PH41VN1j9l
12 hours ago
Member growth at #creditunion continues despite mill closure #NewsNow http://t.co/rNRjLBjvX9
13 hours ago
CA/NV league pres/CEO Dykstra in @sacbee_news: Retailers should hold accountability in data breaches http://t.co/odyHd9N2OG
14 hours ago
Fin. lit. ideas percolate during .@NW_Banking #tweetchat #NewsNow http://t.co/nSS9Iiw0e0
15 hours ago