Current through Register Vol. 18, September 20, 2024
(1) A credit union
shall provide the following disclosures to the credit union's member:
(a) notice of the prohibited acts or
practices contained in ARM
2.59.409;
(b) the fee applicable to the contract and
any payment options;
(c) the
refund;
(d) whether the member is
barred from using the credit line to which it pertains if the debt cancellation
contract or debt suspension agreement is activated;
(e) eligibility requirements, conditions, and
exclusions;
(f) that a debt
suspension agreement, if activated, does not cancel the debt, but only suspends
payment requirements; and
(g)
notice that cancellation of debt may result in a tax liability to the member if
activated.
(2) The
requirements for the timing and method of disclosure are:
(a) the credit union shall make the
disclosures in (1) and the short-form disclosures under ARM
2.59.413 orally at the time the
credit union first solicits the purchase of a contract;
(b) the credit union shall make the long-form
disclosures under ARM
2.59.413 in writing before the
member completes the purchase of the contract. If the initial solicitation
occurs in person, the credit union shall provide the long-form disclosure in
writing at that time;
(c) if the
contract is solicited by telephone, the credit union shall provide the
disclosures in (1) and the short-form disclosures under ARM
2.59.413 orally and shall mail the
long-form disclosures, and if appropriate, a copy of the contract, to the
member within three business days beginning on the first business day after the
telephone solicitation; and
(d) if
the contract is solicited through written materials such as mail inserts or
"take one" applications, the credit union may provide only the disclosures in
(1) and the short-form disclosure under ARM
2.59.413 to the member within three
business days beginning on the first business day after the member contacts the
credit union in response to the solicitation, subject to the requirements of
ARM 2.59.412(3)(b).
(3) The disclosures required by
these rules must be conspicuous, simple, direct, readily understandable, and
designed to call attention to the nature and significance of the information
provided. The methods may include use of plain language headings, easily
readable typeface and size, wide margins and ample line spacing, boldface or
italics for key words, and/or distinctive type style or graphic
devices.
(4) The disclosures in the
short-form disclosure under ARM
2.59.413 are required in
advertisements and promotional material for contracts unless the advertisements
and promotional materials are of a general nature describing or listing the
services or products offered by the credit union.
(5) The disclosures described in these rules
may be provided through electronic media in a manner consistent with the
requirements of the Electronic Signatures in Global and National Commerce Act,
15 USC
7001 et seq. or the Uniform Electronic
Transaction Act, Title 30, chapter 18, part 1, MCA.
32-3-201, MCA; IMP,
32-3-609,
MCA;
