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0% financing prizes: CUs should look before they leap

BOSTON - A word to the wise from credit union legal experts: Credit unions considering offering zero percent auto loan financing as prizes to members should be thoroughly familiar with related IRS rules before launching a promotion.

By Staff Writer | Updated on January 08, 2002

BOSTON – A word to the wise from credit union legal experts: Credit unions considering offering zero percent auto loan financing as prizes to members should be thoroughly familiar with related IRS rules before launching a promotion.

Richard Schulman, Esq. an 11-year NCUA veteran who also served for three years as Associate General Counsel on the regulatory side of the office of General Supervision and who is currently a partner at Roach & Carpenter, Boston representing federal and state-chartered credit unions, told Credit Union Times he has received calls from several credit unions inquiring about the feasibility of offering zero percent financing “either as a raffle drawing or other type of prize” to members who apply for auto loans.

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