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Credit Life at Renewal

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Question: 
Can you issue credit life and/or disability when renewing or doing a change in terms on an existing closed end consumer loan?
Answer: 

Yes. However, it would be prudent to follow the Truth in Lending disclosures if you are selling credit life for the first time to that customer. If the renewal is truly a renewal the insurance had been purchased with the original note then there shouldn't be any new disclosure requirements.

First published on BankersOnline.com 1/7/02

First published on 01/07/2002

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