Debt waiver disclosure requirements
When someone buys a debt waiver (a product that cancels or reduces what a person owes on a loan if something goes wrong), the company selling it must give that person a written document written in plain, easy-to-read language. That document must include the names and addresses of the lender and borrower, the price and terms of the waiver, how to cancel it for a full refund during a trial period (if no benefits were used), how to make a claim, the rules for canceling, and a statement that buying the waiver is not required to get a loan or vehicle.
407.2045. disclosure requirements. — Debt waivers shall disclose in writing and in clear, understandable language that is easy to read the following:
(1) The name and address of the initial and the borrower at the time of sale, and the identity of any if different from the creditor;
(2) The purchase price, if any, and the terms of the debt waiver including, but not limited to, the requirements for protection, conditions, or associated with the debt waiver;
(3) A statement that the borrower may cancel the debt waiver within a as specified in the debt waiver and, if so , shall be entitled to a full refund of the purchase price paid by the borrower, if any, so long as no benefits have been provided;
(4) The procedure the borrower is required to follow, if any, to obtain debt waiver benefits under the terms and conditions of the debt waiver, including, if applicable, a telephone number or website and address where the borrower may apply for debt waiver benefits;
(5) The terms and conditions governing consistent with all applicable Missouri laws; and
(6) A statement that any , terms of the , or terms of the related motor vehicle sale or shall not be upon the borrower's purchase of a debt waiver.
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Source & history notes
(L. 2023 S.B. 398)
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