Wisconsin Administrative Code
Department of Financial Institutions
DFI-CU 51-75 - Department of Financial Institutions-Credit Unions
Chapter DFI-CU 74 - Debt Cancellation Contracts And Debt Suspension Agreements
Section DFI-CU 74.04 - Prohibited practices

Universal Citation: WI Admin Code ยง DFI-CU 74.04

Current through February 26, 2024

(1) ANTI-TYING. A credit union shall not extend credit or alter the terms or conditions of an extension of credit conditioned upon the customer entering into a debt cancellation contract or debt suspension agreement with the credit union.

(2) MISREPRESENTATIONS GENERALLY. A credit union shall not engage in any practice or use any advertisement that is false, misleading or deceptive, or which omits to state material information, or otherwise would cause a reasonable person to reach an erroneous belief with respect to information that may be disclosed under this section.

(3) PROHIBITED CONTRACT TERMS. A credit union shall not offer debt cancellation contracts or debt suspension agreements that contain any of the following:

(a) Terms giving the credit union the right unilaterally to modify the contract unless the modification is favorable to the customer and is made without additional charge to the customer, or the customer is notified of any proposed change and is provided a reasonable opportunity to cancel the contract without penalty before the change goes into effect.

(b) Terms requiring a lump sum, single payment for the contract payable at the outset of the contract, where the debt subject to the contract is a residential mortgage loan.

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