The CFPB has issued a proposal to delay the effective date of the general prohibition on financing single-premium credit insurance. This prohibition is otherwise scheduled to take effect June 1, 2013. Comments on the proposal are due May 25, 2013.
The goal of the delay is to allow the CFPB a chance to clarify the circumstances in which credit insurance premiums could be paid periodically, rather than financed. The Rule applies to all consumer closed-end transactions secured by a dwelling and also open-end lines of credit when secured by the consumer’s principal dwelling.
It will be interesting to see how this develops. The CFPB will need to move quickly once the comment period ends and the current effective date of June 1st.
Diane joined Banker’s Compliance Consulting with over 10 years of compliance experience and over 15 years of experience within the financial industry. Diane is a Certified Regulatory Compliance Manager (CRCM) and has a Bachelor’s Degree in Sociology with a concentration in Criminal Justice. She is a graduate of the Schools of Banking Compliance School and has participated in various other training opportunities throughout her career. Diane understands firsthand the struggles banks face in building and maintaining successful compliance programs. Her experience and common sense approach to consumer compliance is a great asset to our clients.
Diane and her husband have two kids who keep them busy. She enjoys running and other sports and is a big Bugs Bunny fan! She’s a bit crazy in that she does enjoy reading some of these regulations and she’s a “crazy cat lady!” Her cat tales are hilarious!