Current through February 26, 2024
(1) CONTENT OF SHORT FORM DISCLOSURES. The
short form of disclosures required by this section shall include information
relating to any of the following that is appropriate to the product offered:
(a) That the product is optional.
(b) Lump sum payment of fee.
(c) Lump sum payment of fee with no
refund.
(d) Refund of fee paid in
lump sum.
(e) Any additional
disclosures.
(f) Eligibility
requirements, conditions and exclusions.
(2) CONTENT OF LONG FOR DISCLOSURES. The long
form of disclosures required by this section shall include information relating
to any of the following that is appropriate to the product offered:
(a) That the product is optional.
(b) An explanation of debt suspension
agreement.
(c) The amount of
fee.
(d) Lump sum payment of
fee.
(e) Lump sum payment of fee
with no refund.
(f) Refund of fee
paid in lump sum.
(g) Use of card
or credit line restricted.
(h)
Termination of product.
(i)
Eligibility requirements, conditions and exclusions.
Note: Copies of the short and long form, and instructions for
using them may be obtained by writing to the Office of Credit Unions, P.O. Box
14137, Madison, WI 53708-0317 or by downloading it from the Department of
Financial Institutions' website, www.wdfi.org.
(3) DISCLOSURE REQUIREMENT, AND TIMING AND
METHOD OF DISCLOSURES.
(a)
Short form
disclosures. The credit union shall make the short form disclosures
orally at the time the credit union first solicits the purchase of a
contract.
(b)
Long form
disclosures. The credit union shall make the long form disclosures in
writing before the customer completes the purchase of the contract. If the
initial solicitation occurs in person, the credit union shall provide the long
form disclosures in writing at that time.
(c)
Transactions by
telephone. If the contract is solicited by telephone, the credit union
shall provide the short form disclosures orally and shall mail the long form
disclosures, and, if appropriate, a copy of the contract to the customer within
3 business days, beginning on the first business day after the telephone
solicitation.
(d)
Solicitations using written mail inserts or "take one"
applications. If the contract is solicited through written materials
such as mail inserts or "take one" applications, the credit union may provide
only the short form disclosures in the written materials if the credit union
mails the long form disclosures to the customer within 3 business days,
beginning on the first business day after the customer contacts the credit
union to respond to the solicitation, subject to the requirements of s. DFI-CU
74.08(3).
(e)
Electronic
transactions. Disclosures described in this section provided through
electronic media shall be in a manner consistent with the requirements of the
Electronic Signatures in Global and National Commerce Act,
15 USC
7001 et seq.
(4) FORM OF DISCLOSURES.
(a)
Understandable
disclosures. The disclosures required by this section shall be
conspicuous, simple, direct, readily understandable, and designed to call
attention to the nature and significance of the information provided.
(b)
Meaningful disclosures.
The disclosures required by this section shall be in a meaningful form.
Note: The following are examples of means that call attention
to the nature and significance of the information provided in the disclosure: a
plain language heading to call attention to the disclosures; typeface and type
size that are easy to read; wide margins and ample line spacing; boldface or
italics for key words; and distinctive type style, and graphic devices, such as
shading or sidebars, when the disclosures are combined with other
information.
(5)
ADVERTISEMENTS AND OTHER PROMOTIONAL MATERIAL FOR DEBT CANCELLATION CONTRACTS
AND DEBT SUSPENSION AGREEMENTS. The short form disclosures 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.
