Written by Steve Van Beek
On Wednesday the CFPB issued a final rule to delay the effective date of the prohibition on financing single-premium credit insurance. As we've blogged about in the past, there were numerous comments to the CFPB about the lack of clarity and certainty in their final rule. To their credit, the CFPB listened and proposed - and now finalized - a delay of the effective date.
The prohibition was originally scheduled for June 1, 2013 but has been extended to January 10, 2014.
Additionally, the CFPB reiterated their intent to issue another proposal to analyze (and hopefully clarify) this issue and will also be analyzing the most appropriate effective date:
"In light of the interpretive questions that have arisen since publication of the Final Rule, the Bureau intends to publish a proposal to seek further comment on the provision shortly. In that proposal, the Bureau intends, among other things to seek public comment, including from industry stakeholders and consumers, on (1) the applicability of the prohibition to transactions in which credit insurance premiums are charged periodically; and (2) given these proposed clarifications to § 1026.36(i), what effective date would be appropriate."
In other words, write January 10, 2014 down in pencil and keep an eye out for the future proposal.
Have a great weekend!
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