12 CFR 37.4
§ 37.4 Refunds of fees in the event of termination or prepayment of the covered loan.
United States · 12 CFR — Banks and Banking · Status: effective
Cite this
- Citation
- 12 CFR 37.4, § 37.4 Refunds of fees in the event of termination or prepayment of the covered loan, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/43466
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Full text
(a) Refunds. If a debt cancellation contract or debt suspension agreement is terminated (including, for example, when the customer prepays the covered loan), the bank shall refund to the customer any unearned fees paid for the contract unless the contract provides otherwise. A bank may offer a customer a contract that does not provide for a refund only if the bank also offers that customer a bona fide option to purchase a comparable contract that provides for a refund.
(b) Method of calculating refund. The bank shall calculate the amount of a refund using a method at least as favorable to the customer as the actuarial method.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.