<p>WASHINGTON – CUNA received a response from the Fed to the letter it sent the agency in December regarding disclosure of auto financing terms under the Truth in Lending Act and Reg Z. CUNA Assistant General Counsel Jeffrey Bloch said the association was pleased that the Fed’s letter mentioned an Illinois case that CUNA cited in its letter as a basis for its argument that auto dealers should be required to disclose that the finance charge and annual percentage rate offered in 0% finance deals reflect the amount of any rebate the consumer may receive in place of a low-rate loan, and that consumers should be made aware that they may wind up paying more for the vehicle if they choose to accept the low interest rate over the rebate. The Fed reiterated that it intends to begin a review of Reg Z this year and plans to invite public comment on “the appropriate scope of the review generally, as well as on credit practices and products that have evolved in recent years and should be addressed specifically.” The agency said it would consider CUNA’s suggestions “in the context of this upcoming review.” “CUNA doesn’t want the 0% financing offers to be discontinued, we just want the Fed to require full disclosure of all information so consumers have all the information to make the best choices,” said Bloch.</p>

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?


Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2022 ALM Global, LLC. All Rights Reserved.