5757258, 69U-100.100 - Florida Administrative Rules, Law, Code, Register

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Florida Department of State and Division of Library and Information Services

Notice: 5757258

Notice of Development of Rulemaking

Department:

DEPARTMENT OF FINANCIAL SERVICES

Division:

FSC - Financial Institution Regulation

Chapter:

FINANCIAL INSTITUTIONS GENERALLY

Overview

RULE:

69U-100.100	Authority, Purpose, and Scope
69U-100.101	Definitions Concerning Debt Cancellation Products
69U-100.102	Prohibited Practices
69U-100.103	Refunds
69U-100.104	Method of Payment or Fees
69U-100.105	Disclosures
69U-100.106	Affirmative Election to Purchase and Acknowledgement of Receipt of Disclosures Required

PURPOSE:

Currently, financial institutions may offer debt cancellation products pursuant to an Order of General Application that was issued by the Office of Financial Regulation on February 1, 2006.   During the 2008 regular session, the Florida Legislature passed HB 347, which, among other things, codifies this authority in statute.  HB 347 was signed into law (Chapter 2008-75, Laws of Florida) on May 28, 2008, and will take effect on October 1, 2008.    The new law provides authority for financial institutions and their subsidiaries to offer debt cancellation products, and charge fees for such products, in connection with the loans, leases, and similar extensions of credit made by the financial institutions and their subsidiaries pursuant to ss. 655.947 and 655.954, F.S., and the rules and orders of the Commission and the Office of Financial Regulation.   The proposed rules implement the new law by setting forth standards that will apply to debt cancellation products offered by financial institutions and their subsidiaries.  The purpose of these standards is to ensure that financial institutions and their subsidiaries offer debt cancellation products consistent with safe and sound financial institution practices, and subject to appropriate consumer protection.  The proposed rules apply to all contracts and agreements for debt cancellation products entered into by financial institutions and their subsidiaries in connection with extensions of credit they make, purchase, or assume.  The proposed rules are based on and consistent with federal regulations set forth in 12 C.F.R. Part 37.

SUBJECT:

Financial Institutions/Debt Cancellation Products

RULEMAKING AUTHORITY:

655.012(2), 655.947(3) FS

LAW:

655.947, 655.954 FS.

PRINT PUBLISH DATE:

6/20/2008 Vol. 34/25

RELATED STATUTES
AND LAWS:

655.012(2), 655.947(3) FS, 655.947, 655.954 FS.

OVERSIGHT COMMITTEE:

Joint Administrative Procedures Committee
Florida Administrative Law Central Online Network (F.A.L.C.O.N.)

RELATED COURT CASES:

Division of Administrative Hearings

FEDERAL eRULEMAKING
WEB PORTAL:

Regulations.gov

HOW TO LINK TO
THIS NOTICE:

http://www.flrules.org/gateway/ruleno.asp?id=69U-100.100&PDate=6/20/2008&Section=1

REFERENCE MATERIALS:

No reference(s).

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