Regulatory Alerts2004-03-23
Guidelines for the Sale and Financing of Club Memberships
The Louisiana Office of Financial Institutions issued Policy LL-02-01 to regulate how lenders finance club memberships under the state Consumer Credit Law. The policy mandates that lenders may only finance a club membership for the duration of its unexpired term and prohibits consumers from holding more than one active financed membership simultaneously. Effective January 1, 2002, these guidelines apply to all lenders making consumer loans subject to the law and aim to eliminate abusive multi-membership sales practices.
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