Document Description – Electronic format only
When Used: This document is used after the Pre-Approved Loan has been consummated and the Dealer has been paid.
Purpose: This document is used to communicate the final terms of the Pre-Approved Loan to the borrower(s). This document also details the costs of any Payment Protection, GAP, or Extended Warranty (MRC) purchased.
The Pre-Approved Express Draft Confirmation Receipt should be sent out to the borrower(s) as soon as possible once the Pre-Approved Loan transaction is completed as it is a contractual requirement the borrower receive this document.
Document Numbers: NXX63* for use with Debt Protection
NXX83* for use with Credit Insurance (shown below)
How Distributed: Distribution by the Credit Union to the Borrower(s) at time of Loan Completion:
Once the credit union has finalized the loan transaction, a Pre-Approved Express Draft Confirmation Receipt must be provided to the borrower(s).
While a best practice to also send a copy of the completed Pre-Approved Express Draft (Site Draft), marked “Copy”, or Pre-Pre-Approved Express Draft (Check) including the signed check, marked “VOID”, with the Pre-Approved Express Draft Confirmation Receipt once the credit union has finalized the loan transaction, it is not necessary.
NOTE: This document was designed to fit into a window envelope.
There is also an optional marketing message area near the top of the document for the credit union to use as needed. (e.g. Thank you message to member, cross-sell message for other credit union services, special promotion or activity happening at the credit union or within the community, etc.)
Printed Components: Part 1 – Credit Union copy of the Pre-Approved Express Draft Confirmation Receipt
Part 2 – Borrower copy of the Pre-Approved Express Draft Confirmation Receipt
State-Specific Versions: Florida
*Indicates spaceholder for version number
Page 1 sample
Paid to Dealer
Paid on Your Loan(s) with Us Paid to Others on Your Behalf for
for
REPAYMENT TERMS
Pre-Approved Express Draft Confirmation Receipt
NAME (AND ADDRESS IF DIFFERENT FROM BORROWER 1) BORROWER 1
NAME AND ADDRESS
LOAN NUMBER EXPRESS DRAFT NUMBER
LOAN TYPE ACCOUNT NUMBER
You have elected the following Voluntary Payment Protection (if applicable):
Credit Insurance Insurance Charge Single Credit Disability $
Joint Credit Disability $ Single Credit Life $ Joint Credit Life $
DISBURSEMENT DETAILS
BORROWER 2 LOAN DATE
You have elected the following other coverages (if applicable):
Guaranteed Asset Protection Extended Warranty
Your Payment Schedule Will Be: Number of Payments Amount of Payments When Payments Are Due
$
$
$
$
$
$
$ Total Loan Amount:
To create these samples, pull the pdf into an InDesign file and add the circles to a seperate layer. Now make a high res pdf of the form with circle numbers to use as a graphic for the manual. (maz)
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Page 1 instructions
Please refer to the document on the preceding page for the corresponding numbers.
NOTE: Since this is not a Truth in Lending disclosure and all information represents the final terms of the loan, use of “e” for estimate should not be used
1. Credit Union Information – This space is used to identify the credit union. If your credit union’s name, address, telephone number and logo were not imprinted by LOANLINER, enter the applicable information here.
2. Borrower Information – Enter the borrower’s name and address to be used with a window envelope (optional) for ease of mailing.
3. Blank Space – This area can be used for instructions particular to your credit union. You may also use this space to promote protection products such as Payment Protection, GAP, or Extended Warranty (MRC), or other credit union products or services the borrower(s) have yet to purchase. The credit union may also use this space for a simple “Thank you” to the member.
4. Loan Type – Enter the Loan Type associated with the terms of the loan and property purchased.
5. Loan Date – Enter the date of loan. This date is not established by regulation or contract, it is simply the date your credit union chooses to use to represent “the date of the loan.”
6. Loan Number – Enter the loan identification number as defined by the credit union.
7. Express Draft Number – Enter the Express Draft Number that corresponds to the Express Draft Number on the Pre-Approved Express Draft (Site Draft) or Pre-Approved Express Draft (Check).
8. Account Number – Enter the borrower’s account number.
9. Borrower 1 Name and Address / Borrower 2 Name and Address – Enter the name and address of each borrower.
Disbursement Details
The following section acts as a summary of the different items that create the total loan amount.
10. Paid to Dealer – Enter the amount Paid to the Dealer.
11. Paid on Your Loan(s) with Us – This indicates if any loan funds were used to pay off the existing loan for a Trade-in property connected to this Pre-Approve Loan transaction.
12. Paid to Others on Your Behalf – These blanks are provided to detail the various amounts paid to other persons (excluding amounts paid to the Dealer already listed above) by the credit union on the borrower’s behalf. Do not list amounts paid to others for Guaranteed Asset Protection and Mechanical Repair Coverage as those are listed below. Identify the persons the credit union paid on the borrower’s behalf by specific name or generic categories such as “credit bureau” or “state agency” as needed. The amount the Credit Union paid to another financial institution in order to satisfy any existing loans the borrower had with that institution would be listed here.
Page 1 instructions (continued) Guaranteed Asset Protection
13. Paid for outside of the Loan – Enter the amount of the Guaranteed Asset Protection if it was not financed into the loan, but paid for in cash or by some other means outside of the loan.
14. Financed into the Loan – Enter the amount of the Guaranteed Asset Protection if it was financed into the loan.
Mechanical Repair Coverage (Extended Warranty)
15. Paid for outside of the Loan – Enter the amount of any Extended Warranty or Mechanical Repair Coverage if it was not financed into the loan, but paid for in cash or by some other means outside of the loan.
16. Financed into the Loan – Enter the amount of the Extended Warranty or Mechanical Repair Coverage if it was financed into the loan.
17. Payment Protection – If Payment Protection (i.e. Credit Insurance or Debt Protection) was sold at the time of pre-approval, it would have been disclosed as an estimate. Enter the actual cost of the Payment Protection here along with which coverage options were selected.
Illustrates version NXX63* for Debt Protection
You have elected the following Voluntary Payment Protection (if applicable):
Debt Protection
(option chosen)
$
18. Total Loan Amount – Enter the total amount of the Loan. This amount includes all amounts paid to the dealer or other parties, amounts paid on other loans, and any GAP coverage or MRC that was financed into the transaction.
19. Payment Schedule – Enter the number and amount(s) of the payments based on the final loan amount and terms. If Voluntary Payment Protection is elected, the premium or program fee should be included in the payment amount.
IMPORTANT: Since the original Payment Schedule disclosures could only be estimated, it is required by contract (not by Reg Z) to provide the final Repayment Terms based on the final loan amount and terms.