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Question 132

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?

    Correct Answer: C

    The bank must give the customer 30 days to cancel the contract in writing. Oral affirmative elections are acceptable, but the rules require a written notice period for cancellation to protect consumers.

Discussion
Cam22Option: C

C - Question in guide