ACME National bank uses telephone solicitations to sell its debt cancellation contracts. The banker explains to the borrower the nature of the contract, gives an oral short form disclosure, receives the customer's affirmative election orally, and sends the written long form disclosures and written affirmative election within three business days. Is the bank in compliance with the telephone solicitation rules as they apply to affirmative elections?
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A. B. C. D.C
Under the Telephone Consumer Protection Act (TCPA) and its implementing regulations, banks and other entities that make telephone solicitations are required to comply with specific rules regarding the content of the calls, including the manner in which the caller obtains the customer's affirmative election to purchase a product or service.
In this scenario, ACME National bank makes telephone solicitations to sell its debt cancellation contracts. The bank explains the nature of the contract and provides an oral short form disclosure. The borrower gives an oral affirmative election to purchase the contract, and the bank sends the written long form disclosures and written affirmative election within three business days.
The question asks whether the bank is in compliance with the telephone solicitation rules as they apply to affirmative elections. The correct answer is A, "Yes, the bank has fulfilled all of its requirements."
According to the TCPA regulations, a caller may obtain the customer's affirmative election either orally or in writing. In this case, the borrower gives an oral affirmative election, which is acceptable under the rules.
Moreover, the bank's practice of providing the written long form disclosures and written affirmative election within three business days is also compliant. Under the rules, a caller must provide the customer with both the oral and written disclosures, and the customer must provide affirmative consent to the purchase before the seller can initiate the transaction.
There is no requirement under the TCPA rules for a 30-day cancellation period for debt cancellation contracts. Therefore, answer C, "No, the bank also must give the customer 30 days to cancel the contract," is incorrect.
Answer D, "No, telephone solicitations are not allowed for debt cancellation contracts," is also incorrect, as telephone solicitations are permitted for debt cancellation contracts, provided that the caller complies with the TCPA's rules regarding affirmative elections.
In summary, ACME National bank is in compliance with the telephone solicitation rules as they apply to affirmative elections by obtaining an oral affirmative election and providing written disclosures within three business days.