Currently, financial institutions may offer debt cancellation products pursuant to an Order of General Application that was issued by the Office of Financial Regulation on February 1, 2006. During the 2008 regular session, the Florida Legislature passed HB 347, which, among other things, codifies this authority in statute. HB 347 was signed into law (Chapter 2008-75, Laws of Florida) on May 28, 2008, and will take effect on October 1, 2008. The new law provides authority for financial institutions and their subsidiaries to offer debt cancellation products, and charge fees for such products, in connection with the loans, leases, and similar extensions of credit made by the financial institutions and their subsidiaries pursuant to ss. 655.947 and 655.954, F.S., and the rules and orders of the Commission and the Office of Financial Regulation. The proposed rules implement the new law by setting forth standards that will apply to debt cancellation products offered by financial institutions and their subsidiaries. The purpose of these standards is to ensure that financial institutions and their subsidiaries offer debt cancellation products consistent with safe and sound financial institution practices, and subject to appropriate consumer protection. The proposed rules apply to all contracts and agreements for debt cancellation products entered into by financial institutions and their subsidiaries in connection with extensions of credit they make, purchase, or assume. The proposed rules are based on and consistent with federal regulations set forth in 12 C.F.R. Part 37.