ARM 2.59.409. PROHIBITED ACTS OR PRACTICES

(1) A credit union 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 member entering into a debt cancellation contract or debt suspension agreement with the credit union. 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 2.59.408, 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 credit union the right unilaterally to modify the contract unless: (A) the modification is favorable to the member and is made without additional charge to the member; or (B) the member 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.