Published: December 2017

Protect borrowers from unnecessary credit-related insurance products

Advocates are pushing back against a bill in the House that would likely remove existing federal protections meant to protect those taking out loans from deceptive and downright fraudulent credit-related “add on” insurance sales.

Consumer groups sent a letter to the U.S. House in opposition to a bill (HR 3746) that likely would allow companies offering credit-related insurance products to avoid Consumer Financial Protection Bureau (CFPB) oversight. If passed, companies could engage in deceptive and fraudulent practices involving the sale of forced mortgage and auto insurance, credit insurance add-ons and private mortgage insurance. Often, consumers do not even realize that the price of a loan has been padded with these types of insurance (which they may not even have agreed to purchasing). Because of this, consumers often end up paying high prices for products with little to no value.

Lead Organization

National Consumer Law Center

Other Organizations

Allied Progress | Americans for Financial Reform | Baltimore Neighborhoods, Inc. | Center for Economic Justice | Center for Responsible Lending | Consumer Federation of America | Consumers Union | Empire Justice Center | Long Island Housing Services, Inc. | National Association of Consumer Advocates | National Consumer Law Center (on behalf of its low income clients) | National Fair Housing Alliance | Public Counsel (California) | Public Justice Center (Maryland) | Reinvestment Partners (North Carolina) | U.S. PIRG | Woodstock Institute (For a full list, including state organizations, please click below.)

More Information

Click here for more information.

Download PDF

Protect borrowers from unnecessary credit-related insurance products   (HR3746CreditRelatedInsuranceLetter.pdf)

 

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