Kentucky’s U-Drive-It Program
AFSA’s State Government Affairs team submitted a comment letter to the Kentucky department of Revenue regarding the state’s U-Drive-It Program and recent guidance affecting credit insurance and debt cancellation products.
In the letter, AFSA raised concerns about the department’s interpretation of refund requirements under KRS 138.463. Specifically, AFSA urged the department to clarify that refunds for credit insurance and debt cancellation products must be calculated using an actuarial method or another method no less favorable to consumers. AFSA emphasized that lenders and servicers need this clarification to ensure compliance and protect consumers’ financial interests when early payoffs occur.
The lack of clear guidance could result in inconsistent practices across the industry and may expose lenders to regulatory risk. AFSA recommended the department issue formal clarification and consider working with the department of Insurance to ensure consistency for all related products.
This and other SGA letters can be found on the direct advocacy section of AFSA’s website.
May 8th, 2025
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