Mon, May 20, 2013
Washington, District Of Columbia
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.
The comment period ends May 25.