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.
[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 __________.
[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.