the new agency will take.”
and, he said, adding additional credit
insurance disclosures, “particularly ones
as factually inaccurate and misleading as
those proposed by the fed,” to an already
highly regulated industry “raises com-
pliance costs for underwriters and plan
sponsors, and risks impairing the avail-
ability and desirability of these products in
the marketplace.”
as a result, Komp said, a number of
underinsured consumers may no longer
be able to obtain the protection that they
deeply need.
the CfPa was created by the dodd-
frank financial services reform act to take
over the consumer protection responsi-
bilities now shared by all federal bank
regulatory agencies.
most insurance products are exempt
from the purview of the new agency.
Credit insurance products are applicable
to CfPa oversight because they are sold
through banks.
the decision to delay action on the fed
proposal is being supported by industry
and consumer trade groups, albeit for dif-
ferent reasons.
tin, tex., said the fed “recognized that the
substance of these proposed regulations is
precisely the consumer protection areas for
which the CfPB was created.”
Cipinko reiterated his opposition to the
proposed disclosure rules regarding credit
insurance. “CCia was very concerned over
the tone of the proposed disclosures, the way
the frB had changed its fact finding process
and many other issues in connection with
the proposed regulation,” Cipinko said.
he said the fed “received critical comments from all sides of the political spec-trum.”
But Birnbaum supported the fed’s proposal regarding stronger disclosures for
credit insurance.
he said, “state insurance departments
have generally done a poor job of protecting consumers from abuses in credit insurance markets.”
moreover, his letter said, “State insurance regulators have also failed to take action against unfair sales and abusive credit
insurance products.” NU
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