Topic: Cross-Selling & Anti-Tying
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Is there a maximum amount of GAP insurance that we can charge on auto loans?
We are not aware of any limitations in Illinois law on the amount that a financial institution may charge for guaranteed automobile (or asset) protection (GAP) products. The Illinois Department of Financial and Professional Regulation has recognized that Illinois banks are permitted to offer GAP products, without mention of any limitations on the fees charged…
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We would like to place sales calls to customers of our mortgage subsidiary (though we wouldn’t contact any customer who has opted-out). Is there anything in Illinois law from contacting those customers?
We believe that you would not be restricted from placing marketing calls to your affiliates. Any calls to an affiliate would likely be treated as calls pursuant to an “established business relationship,” which would be exempt from the Illinois do-not-call requirements (in the Restricted Call Registry Act). 815 ILCS 402/5(b).
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Are our lenders permitted to use information from customer credit reports to sell additional products and services to those customers?
We believe that banks are prohibited from using credit reports for cross-marketing purposes, unless a bank has the consumer’s written authorization to use the credit report or is complying with appropriate prescreening procedures. The Fair Credit Reporting Act (FCRA) allows banks to pull credit reports only if they have a certain “permissible purpose” for using…