2.59.2043    PROHIBITED ACTS OR PRACTICES

(1)  A mutual association is prohibited from engaging in any of the following acts or practices: 

(a) extending credit or altering the terms or conditions of an extension of credit conditioned upon the customer entering into a debt cancellation contract or debt suspension agreement with the mutual association.  The prohibition is commonly referred to in the regulatory context as the anti-tying provision;

(b)  engaging in any practice or using any advertisement that could mislead or otherwise cause a reasonable person to reach an erroneous belief with respect to information that must be disclosed under ARM 2.59.2042, including what is being offered, the cost, and/or the terms of the contract;

(c)  offering debt cancellation contracts or debt suspension agreements that contain terms:

(i)  giving the mutual association the right unilaterally to modify the contract unless:

(A)  the modification is favorable to the customer and is made without additional charge to the customer; or

(B)  the customer is notified of any proposed change and is provided a reasonable opportunity to cancel the contract without penalty before the change goes into effect; or

(ii)  requiring an up-front, lump-sum single payment for the contract if the extension of credit to which the contract pertains is a residential mortgage loan.

History: 32-2-704, MCA; IMP, 32-2-909, MCA; NEW, 2022 MAR p. 230, Eff. 2/12/22.