Debt Cancellation Contracts & Debt Suspension Agreements

​Appendix B - Long Form Disclosures

  • ​​​​This product is optional

​Your purchase of [Product Name] is optional.  Whether or not you purchase [Product Name]​ will not affect your application for credit or the terms of any existing credit agreement you have with us.

  • Explanation of debt suspension agreement

[Applicable if the contract has a debt suspension feature]

​If [Product Name] is activated, your duty to pay the loan principal and interest to us is only suspended.  You must fully repay the loan after the period of suspension has expired.  [If applicable]:  This includes interest accumulated during the period of suspension.

  • Amount of fee

[For closed-end credit]:  The total fee for [Product Name] is __________.

[For open-end credit, either:]  (1) The monthly fee for [Product Name] is based on your account balance each month multiplied by the unit-cost, which is ______, or (2) The formula used to compute the fee is __________.

  • Lump sum payment of fee

​[Applicable if a creditor offers the option to pay the fee in a single payment]

[Prohibited where the debt subject to the contract is a residential mortgage loan]

​​You may choose to pay the fee in a single lump sum or in [monthly/quarterly] payments.  Adding the lump sum of the fee to the amount you borrow will increase the cost of [Product Name].​

  • ​​Lump sum payment of fee with no refund

[Applicable if a creditor offers the option to pay the fee in a single payment for a no-refund DCC (Debt Cancellation Contract)]

[Prohibited where the debt subject to the contract is a residential mortgage loan]

You have the option to purchase [Product Name] that includes a refund of the unearned portion of the fee if you terminate the contract or prepay the loan in full prior to the scheduled termination date.  Prices of refund and no-refund products may differ.

  • Refund of fee paid in lump sum

[Applicable where the customer pays the fee in a single payment and the fee is added to the amount borrowed]

[Prohibited where the debt subject to the contract is a residential mortgage loan]

​​[Either]:  (1) You may cancel [Product Name] at any time and receive a refund, or (2) You may cancel [Product Name] within _____ days and receive a full refund, or (3) If you cancel [Product Name] you will not receive a refund.

  • Use of card or credit line restricted

[Applicable if the contract restricts use of card or credit line when customer activates protection]

​​If [Product Name] is activated, you will be unable to incur additional charges on the credit card or use the credit line.

  • Termination of [Product Name]

[Either]:  (1) You have no right to cancel [Product Name], or (2)  You have the right to cancel[Product Name] in the following circumstances: _______________________________.

[And either]:  (1)  We have no right to cancel [Product Name], or (2) We have the right to cancel [Product Name] in the following circumstances: _______________________________.

  • Eligibility requirements, conditions, and exclusions

There are eligibility​ requirements, conditions, and exclusions that could prevent you from receiving benefits under [Product Name].

[Either]:  (1) The following is a summary of the eligibility requirements, conditions, and exclusions.  [The creditor provides a summary of any eligibility requirements, conditions, and exclusions], or (2) You may find a complete explanation of the eligibility requirements, conditions, and exclusions in paragraphs ___________ of the [Product Name] agreement.​