Disclosures

lessr is a pre-launch consumer credit platform. Information shown across lessr.net is illustrative until you submit your specific carrier and policy details. The disclosures below cover Reg Z (Truth in Lending), state insurance regulations, and additional consumer-protection notices.

Truth in Lending Act (Reg Z) disclosures

• lessr's cash-value-backed credit card carries a stated APR in the ~7–8% range. The APR is disclosed in full at the time of any specific loan offer.
• No origination fee.
• No annual fee.
• Repayment terms are flexible — interest payments are required at least annually; principal repayment is on the cardholder's schedule.
• The specific APR, fee schedule, and repayment terms applicable to your account are disclosed in the cardholder agreement before any draw.

NAIC advertising disclosures

• lessr is not an insurance company and does not sell insurance.
• lessr is not affiliated with any insurance carrier. General information about how carrier policy loans work is based on publicly available carrier disclosures.
• Any rate figures shown are illustrative and may not reflect the rate applicable to your specific policy. Confirm rates with your carrier or policy contract before taking action.

State licensing

State licenses are pending. Specific state availability will be listed at lessr.net at the time of launch.

Direct mail prescreening (FCRA / ECOA / GLBA)

• Any direct mail offer from lessr uses demographic and geographic targeting only, not consumer credit data. lessr's direct mail is not a prescreened credit offer under FCRA.
• If lessr begins using prescreened lists in the future, the appropriate 12 CFR §1022.54 short and long notices will appear on the mail piece.

Tax considerations

• A policy loan against a permanent life insurance policy is not income to the IRS as long as the loan stays outstanding and the policy stays in force.
• If the policy lapses with a loan outstanding, the loan balance is treated as a distribution and the gain portion may become ordinary income.
• If your policy is classified as a Modified Endowment Contract (MEC), different tax rules apply — loans from a MEC count as taxable distributions to the extent of gain.
• lessr does not provide tax advice. Consult a licensed tax advisor before borrowing against your policy.

Lapse risk

• If the loan balance approaches the cash value of the policy, lapse risk increases. lessr surfaces lapse risk indicators when you submit your policy details.
• Paying loan interest at least annually substantially reduces lapse risk.

Direct Recognition

• Some whole life carriers reduce the dividend on the portion of cash value backing a policy loan; others don't. Reducing the dividend this way is called Direct Recognition.
• When Direct Recognition applies, the carrier's stated loan rate is lower than the effective cost. Effective cost = stated rate + dividend reduction.
• lessr lends from its own balance sheet, so the carrier does not see a loan on the policy and does not reduce the dividend. On Direct Recognition carriers, this can save 1–1.5% per year of loan balance.
• On carriers that don't apply Direct Recognition, a carrier-direct loan's effective cost is closer to its stated rate. We're transparent about this.

Effective rate

Where lessr cites an effective rate (as low as 1–2%), it reflects the dividend your policy continues to earn on the cash value backing the card — lessr does not touch the policy, so the carrier does not reduce that dividend. The effective rate is illustrative, assumes a dividend-paying whole life policy at a typical dividend rate, and is not guaranteed; dividend rates are set by your carrier and change over time. Your stated rate (~7–8%) is the APR you pay lessr regardless of dividend performance. This is not a loan offer; actual terms are disclosed in the cardholder agreement.

Source citations

The general rate concepts referenced across lessr.net are sourced from publicly available carrier disclosures, SEC filings, and industry sources. Our methodology is at lessr.net/sources.

Contact

Compliance questions: compliance@lessr.net.