The transmission process involves two steps. First send a copy of the submission form (below) and a „clean“ version of the DCA document by email to DebtCancellationForms@occc.texas.gov. Then send the submission form completed with your cheque for the $250 non-refundable deposit fee and, if you wish, a copy of the debt cancellation contract: a debt cancellation contract (CCD) provides for the cancellation of credit payments in case of difficulty or inability for the borrower to make payments. These events may include an accident or loss of life, health or loss of income. Other reasons for debt cancellation are military service, marriage and divorce. As long as a federal credit union (FCU) does not operate in some form of self-insurance, as described below, we believe that debt cancellation contracts or CAP waiver declarations are not insurance products and that an FCU can use them. Our answer is limited to THE FCUs. With respect to state-chartered credit unions, you should suggest that these questions be answered to the appropriate public authority. For further questions about debt relief contracts, please ask debtcancellationforms@occc.texas.gov. Richard Hetzel of FLS Services, Inc. forwarded your address to John Tullis of the Balboa Insurance Company to the General Counsel Office of the National Credit Union Administration (NCUA) in response. In your letter, you asked for a written statement that credit unions can use deleveraging contracts or agreements and that the NCUA does not consider these contracts or agreements to be insurance.
States require liability insurance for vehicles. Debt cancellation is not insurance. Customers must purchase liability insurance from an insurance company on the vehicle. Liability insurance is affordable. Is debt cancellation the answer to all vehicles? No, debt cancellation waives the customer`s debts in the event of total loss or theft and does not cover partial losses such as plinths. Debt relief agreements may not be the right product for long-term financed vehicles with higher real values. DC offers borrowers a flexible way to protect themselves from a large number of events that could jeopardize their ability to pay their debt. They also allow borrowers to purchase only the amount of coverage they need, depending on their financial situation and the amount of debt they have to pay. As a result, debt relief contracts (DCs) and debt suspension agreements (DSAs) are often a more appropriate form of debt protection for borrowers than credit insurance.
A debt cancellation contract (CCD) is a contractual agreement to change the terms of credit. As part of the debt cancellation contract, a bank agrees to revoke all or part of a customer`s obligation to repay a credit or credit. These contracts take effect with the arrival of a particular event, as stipulated in the contract, and most people associate them with credit card debts. In your letter, you referred to a letter from Richard Schulman to Richard Hetzel on November 16, 1995, in which we explained that a FCU may sell debt cancellation contracts to its members as an activity related to the FCU`s explicit lending authority. They sought clarification of a statement, which was later made in the notice, that such debt relief contracts „constitute an unacceptable activity when they require an FCU to lend by other means.“ The bid is deemed complete only when our agency has received both the non-refundable deposit tax and the debt cancellation contract.
