Banks offering retail and small business customers foreign currency loans have been asked to review their communications with borrowers about the risks involved in taking out such loans.
The Code Compliance Monitoring Committee reviewed foreign currency loan practices and found that lenders were meeting their obligations by providing a general warning about the risk arising from exchange rate movements.
However, some lenders were providing this information at the time the letter of offer was issued to the customer. CCMC wants lenders to issue warnings prior to any formal offer...
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