C.F.R. » Title 12 » CHAPTER I—COMPTROLLER OF THE CURRENCY, DEPARTMENT OF THE TREASURY › PART 37—DEBT CANCELLATION CONTRACTS AND DEBT SUSPENSION AGREEMENTS

12 C.F.R. § 37.3

Prohibited practices

Read at: eCFRecfr.gov CornellLII GovInfogovinfo.gov CasesGoogle Scholar

(a) Anti-tying. A national bank may not extend credit nor alter 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 bank.

(b) Misrepresentations generally. A national bank may not engage in any practice or use 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 this part.

(c) Prohibited contract terms. A national bank may not offer debt cancellation contracts or debt suspension agreements that contain terms:

(1) Giving the bank the right unilaterally to modify the contract unless:

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

(ii) 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

(2) Requiring a lump sum, single payment for the contract payable at the outset of the contract, where the debt subject to the contract is a residential mortgage loan.

Notes of Decisions
Cited in 7 cases (2 in the last 5 years), 2009–2025 · leading case: West Virginia ex rel. McGraw v. JPMorgan Chase & Co., 842 F. Supp. 2d 984 (S.D. W. Va. 2012).
Sort: Relevance Newest Treatment
West Virginia ex rel. McGraw v. JPMorgan Chase & Co., 842 F. Supp. 2d 984 (S.D. W. Va. 2012). “” 12 C.F.R. § 37.3 (a). Therefore, even if the plans are nominally modifications of the underlying account, such a characterization does not end the inquiry into whether they are “interest.”
Thomas v. Bank of Am. Corp., 711 S.E.2d 371 (Ga. Ct. App. 2011). “1 ); prohibit certain practices, including misrepresentation ( 12 CFR § 37.3 ); provide the terms for refunds ( 12 CFR § 37.”
Spinelli v. Capital One Bank, 265 F.R.D. 598 (M.D. Fla. 2009). “1 ); prohibits certain practices, including misrepresentation ( 12 C.F.R. § 37.3 ); provides the terms for refunds ( 12 C.”
New Mexico ex rel. King v. Capital One Bank (USA) N.A., 980 F. Supp. 2d 1314 (D.N.M. 2013). “” 12 C.F.R. § 37.3 . As referenced repeatedly above, Part 37 expressly provides that debt cancellation and suspension agreements are governed by federal, not state law.”
Gordon v. Kohl's Dep't Stores, Inc., 172 F. Supp. 3d 840 (E.D. Pa. 2016). “See 12 C.F.R. § 37.3 (a). Furthermore, the OCC has justified fees for debt cancellation contracts by pointing to the provision in Part 7 which allows national banks “to establish non-interest charges and fees.”
Labarrere-Abreu v. Carvana Co., No. 1:25-cv-00299 (D.N.M. July 7, 2025). · cites it 3× “Furthermore, their legal representatives, acting in bad faith, have advised them to continue these deceptive practices in violation of 12 C.F.R. § 37.3 (b) (misrepresentation of banking transactions) and 26 C.”
Labarrere-Abreu v. Carvana Co., No. 1:25-cv-00299 (D.N.M. Apr. 15, 2025). · cites it 2× “Second, the Complaint fails to state a claim pursuant to 12 C.F.R. § 37.3 (b). “A national bank is authorized to enter into debt cancellation contracts and debt suspension agreements and charge a fee therefor, in connection with extensions of credit that it makes.”
Annotations are extracted automatically from the opinions in the Syfert caselaw corpus and ranked by authority, recency, and treatment. Dots show Syfertize treatment of the citing case itself.