Marketing & Business Development Flashcards

A sales rep tells a prospect that enrolling will stop all collection calls immediately. Why is this problematic?

Answer: Debt relief services cannot legally stop creditor collection efforts, so it is a misrepresentation

Misrepresenting the effect of the program on collection activity is a deceptive claim under the TSR.

Which fee approach complies with the TSR advance-fee ban for debt settlement?

Answer: A fee collected only after a debt is settled and the consumer makes at least one payment to the creditor

Fees may be collected only after a settlement is reached, agreed to by the consumer, and at least one payment is made.

When a consumer's funds are held in a dedicated account, which disclosure is required in marketing and sales?

Answer: That the consumer owns the funds and interest and may withdraw them anytime without penalty

The TSR requires disclosing that the customer owns the funds and accrued interest and can withdraw them with no penalty.

A company's website prominently claims '50% average savings.' What does the TSR require for such savings claims?

Answer: The claim must be based on the full enrolled debt and supported by substantiation, including dropouts' outcomes

Savings representations must be substantiated and reflect outcomes for typical customers, not just successful ones.

Which business development partnership is most likely to raise regulatory concern?

Answer: Paying undisclosed referral fees to a bank's loan officers to steer customers

Undisclosed compensation for steering consumers can be deceptive and may violate state laws and the FTC Act.

A telemarketing call must transmit what information to the consumer's caller ID under the TSR?

Answer: The telemarketer's or seller's name and a phone number that can be called back during business hours

The TSR requires transmission of caller ID with a callable number, and spoofing is prohibited.

Within how many seconds of a consumer's greeting must a live representative be connected to avoid a call being considered abandoned?

Answer: 2 seconds

Under the TSR, a call is abandoned if not connected to a live rep within two seconds of the completed greeting.