Current through Register Vol. 47, No. 11, December 11, 2024
Rule 189-5.4 - Prohibited practices(1)Anti-tying. A credit union may not extend credit or alter the terms or conditions of an extension of credit conditioned upon the borrower's entering into a debt cancellation contract or debt suspension agreement with the credit union.(2)Misrepresentations generally. A credit union may not engage in any practice or use any advertisement that could mislead or otherwise cause a reasonable person to reach an erroneous belief with respect to a debt cancellation agreement.(3)Prohibited contractual arrangement terms. A credit union may not offer debt cancellation agreements that contain terms: a. Giving the credit union the right to unilaterally modify the arrangement unless: (1) The modification is favorable to the borrower and is made without additional charge to the borrower; or(2) The borrower is notified of any proposed change and is provided a reasonable opportunity to cancel the arrangement without penalty before the change goes into effect; orb. Requiring the borrower to make a lump-sum, single payment at the outset of the contract or agreement where the debt subject to the contract or agreement is a residential mortgage loan.Iowa Admin. Code r. 189-5.4