Consumer Credit Regulation: 6.7.3 Packing with Sales of Non-Credit Insurance and Other Ancillary Products
Some creditors pack into loans non-credit insurance, club memberships, and similar fee-generating extras. Creditors profit from these sales and often have set employee quotas for inclusion of the products. The insurance packing practices of ITT Financial a number of years ago provides an example. Debtors would request a loan in a specified amount. The lender would telephone back that the loan plus optional insurance had been approved with a stated monthly payment, never mentioning the total loan amount.