Indirect Lending Statements

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Question:

As a credit union, we do indirect loans with dealers. The belief is that it's regulation that we send members with indirect loans a statement at least quarterly. The question is: is there a regulation requiring us to send them statements or could we eliminate this?

Answer:

There is no federal requirement for this that I'm aware of. Unless there is a specific credit union regulation or a state law requirement where you are located, or a contract provision calling for the statements, you could probably discontinue them.

First published on BankersOnline.com 9/19/05