Administrative Rules of Montana
Department 2 - ADMINISTRATION
Chapter 2.59 - BANKING AND FINANCIAL INSTITUTIONS
Subchapter 2.59.4 - Credit Unions
Rule 2.59.409 - PROHIBITED ACTS OR PRACTICES
Universal Citation: MT Admin Rules 2.59.409
Current through Register Vol. 18, September 20, 2024
(1) A credit union is prohibited from engaging in any of the following acts or practices:
(a) extending credit or altering the terms or
conditions of an extension of credit conditioned upon the member entering into
a debt cancellation contract or debt suspension agreement with the credit
union. The prohibition is commonly referred to in the regulatory context as the
anti-tying provision;
(b) engaging
in any practice or using any advertisement that could mislead or otherwise
cause a reasonable person to reach an erroneous belief with respect to
information that must be disclosed under ARM
2.59.408, including what is being
offered, the cost, and/or the terms of the contract;
(c) offering debt cancellation contracts or
debt suspension agreements that contain terms:
(i) giving the credit union the right
unilaterally to modify the contract unless:
(A) the modification is favorable to the
member and is made without additional charge to the member; or
(B) the member is notified of any proposed
change and is provided a reasonable opportunity to cancel the contract without
penalty before the change goes into effect; or
(ii) requiring an up-front, lump-sum single
payment for the contract if the extension of credit to which the contract
pertains is a residential mortgage loan.
32-3-201, MCA; IMP, 32-3-609, MCA;
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