Chapter 3 Telemarketing and Do not Call Flashcards
Telemarketing Sales Rule
-Prohibits deceptive telemarketing acts or practices and misrepresentation. Prohibited from lying about terms of the offer.
-Prohibits telemarketers from engaging in a pattern of unsolicited telephone calls that a reasonable consumer would consider coercive or an invasion of privacy
-Restricts the hours when unsolicited calls can be made to consumers. May not call before 8 A.M. or after 9 P.M. (customer’s timezone)
-Requires the MLO and company to keep records for at least 2 years on all calls to people that are on the Do Not Call List.
-You can call an existing customer for 18 months; 90 days for a pre-qual
-Prohibits calls to a consumer who has asked not to be called again.
-Sets payment restrictions for the sale of certain goods and services.
-Requires disclosure of the nature of the call at the start of an unsolicited sales call.
Abusive Telemarketing Acts and Practices Requirements
-May not undertake a pattern of unsolicited telephone calls which are considered coercive or abusive to the customer’s right to privacy
-Limit the hours of the day a telemarketer may make solicitation calls.
-Telemarketer must promptly and clearly disclose the purpose of the call. (Including the nature and price of the product.)
-When for charity or donations must promptly and clearly disclose the organization’s name and address and that it is to solicit donations.
Restrictions on Telemarketers’ Payments
(It is illegal for a telemarketer to;)
-Ask a consumer to pay with a cash-to-cash money transfer.
-Ask a consumer to pay by giving the PIN from the cash reload card.
-Ask for bank account information to create a type of check that is never seen or signed. “remotely created payment orders.”
How often must a telemarketer scrub their call list against he DO Not Call Registry?
Ever 31 days
An MLO may solicit a client on the Do Not Call list in the following situations.
-A previous client from an established business relationship may be solicited for up to 18 months from the last transaction.
-A prospective client who submits an inquiry or application can be solicited for up to 3 months
-A client who has given written permission may be solicited for an unspecified time frame.
A financial institution establishes a customer relationship with an individual when:
-It originates or closes a loan.
-The institution sells the loan but maintains servicing rights. (continues to have a customer relationship)
-The institution transfers the servicing rights but retains an ownership interest in the loan.
-Other institutions hold an ownership interest in the loan but servicing is through your institution. (The are consumers to both.)
Penalty for violating the DO Not Call Registry
Fines up to $43,732 for each call.
