Communication & Stakeholder Engagement Flashcards

A new client asks how long it will take before the company makes its first settlement offer. Under the FTC Telemarketing Sales Rule, what must the agent disclose?

Answer: The specific time frame by which the provider will make a bona fide settlement offer to each creditor

The TSR requires disclosing the amount of time necessary to achieve results, including when offers will be made to each creditor.

Which statement is the most appropriate way to explain credit impact to a prospective client?

Answer: Stopping payments to creditors will likely hurt your credit and may lead to collection activity or lawsuits

Providers must disclose that failing to pay creditors can harm creditworthiness and lead to collections or lawsuits.

A creditor representative calls the agent demanding a client's full balance. What is the best first step?

Answer: Verify authorization on file, then professionally present the client's hardship and settlement position

Agents must act within their authorization and communicate truthfully and professionally with creditors.

When explaining fees, which practice best complies with the TSR's advance fee ban?

Answer: Charging fees only after a debt is settled, the client agrees, and a payment has been made to the creditor

The TSR bars collecting fees until at least one debt is settled, the consumer agrees, and a payment is made under the settlement.

A client with limited English proficiency is enrolling. What is the best communication practice?

Answer: Provide disclosures in a language the client understands, using a qualified interpreter if needed

Meaningful disclosure requires the client to actually understand the terms, which may require qualified language assistance.

What is the main purpose of a welcome call made shortly after enrollment?

Answer: To confirm the client understands the program terms, fees, risks, and next steps

Welcome calls verify understanding and reduce misunderstandings, complaints, and early cancellations.

A client says a creditor has sued them. How should the agent respond?

Answer: Urge the client to respond to the summons promptly and consult an attorney, while notifying the negotiation team

Non-attorney agents cannot give legal advice and must urge timely responses to lawsuits while coordinating internally.