Debt Protection Agreement Vermont

Section 10405(a) states that debt protection agreements that meet the requirements of Section 10405 are not considered insurance and are not subject to Vermont`s insurance laws. “credit life insurance” is defined as insurance over the life of a debtor in connection with or in connection with a particular loan or other credit transaction. Title 8 V.S.A. §4103(1). Section 10405(b)(1) defines a “debt protection agreement” as a credit or contractual agreement that may be part of or separate from the loan agreement or the retail or motor vehicle payment agreement that amends the terms of the credit or retail agreement or several motor vehicle payments that govern the renewal of the loan under the loan or retail sales agreement or motor vehicle payment agreement or retail. and under which the creditor agrees to grant one or more of the following guarantees: (b) Failure to clearly disclose in all written communications to the debtor or members of the creditor`s family to collect a debt or attempt to collect a debt or to obtain information about a debtor that the collection agent is attempting to: collect a claim and that all information received will be used for that purpose; Title 8 V.S.A. Article 4112 stipulates that if credit life insurance or credit accident and health insurance is required as additional security for a debt, the debtor has the possibility, upon request to the creditor, to provide the required amount of insurance through existing insurance policies owned or under its control, or to obtain and provide the necessary coverage by any insurer authorized to: to carry on an insurance business in that State. (b) arrange telephone calls to the debtor without informing him of the name of the undertaking or company represented by the debt collection agency; A debt forgiveness agreement (DCC) is a contractual arrangement that changes the terms of the loan. Under the debt relief agreement, a bank undertakes to cancel a customer`s obligation to repay a loan or credit in whole or in part.

These contracts come into effect with the occurrence of a particular event, as stated in the contract, and most people associate them with credit card debt. Debtor protection agreements do not state that the borrower does not have the right to bring an action to enforce the terms of the debt protection agreement or otherwise challenge the dismissal of a claim, or that civil actions brought under a debt protection agreement must be brought in the courts of a jurisdiction other than Vermont. Title 8 S.V.A. §10405(c)(13). “Credit sickness and accident insurance” is defined as a debtor`s insurance intended to compensate payments due for a particular loan or other credit transaction while the debtor is deactivated as defined in the policy. Title 8 V.S.A. §4103(2). (c) any false statement that the collector has information in his possession or something of value to the debtor; (3) group life insurance policies issued to creditors who offer insurance for the life of debtors with the term plan; (2) “Debt” means money, property or its equivalent that is due or due or purportedly due or due. Section 4106 states that, subject to acceptance by the insurer, the term of credit life insurance or credit accident and credit sickness insurance begins on the day the debtor is liable to the creditor, except that, if a group policy offers obligations that exist in terms of coverage, the debtor`s insurance in respect of that debt begins on the effective date of the policy. The duration of this insurance may not be extended by more than 15 days beyond the expected maturity date of the debt, unless it is extended at no additional cost to the debtor.

If the debt is discharged due to renewal or refinancing before the due date, the applicable insurance will be terminated before new insurance can be taken out as part of the renewed or refinanced debt. In all cases of termination before the due date, a refund will be paid or credited in accordance with Article 4109 of Title 8. Title 8 V.S.A. § 4109 (b) stipulates that each individual policy, group certificate or notice of proposed insurance must provide that in the event of termination of the insurance before the due date of the debt, any repayment of an amount paid by the debtor for the insurance must be immediately paid or credited to the person authorized to do so; provided, however, that the Commissioner prescribes a minimum refund and that no refund is granted that would be lower than these minimum requirements. The formula to be used for the calculation of the reimbursement shall be submitted to and approved by the Commissioner. There are no current regulations or regulations in Vermont that directly govern the seller`s single-interest insurance (V.S.I.) insurance. This type of insurance, which can also be called “creditor insurance”, “guarantee protection insurance”, “compulsory insurance” or “lender`s insurance”, is a type of policy taken out by a lender when a borrower does not meet the minimum insurance requirements of a loan. Credit unions should at least be careful not to use this type of insurance in a way that could be interpreted as unfair or misleading under Vermont Title 9 V.S.A. Consumer Protection Act. .