Marketing & Business Development Flashcards

Which disclosure must a debt relief telemarketer make if the program involves not paying creditors during enrollment?

Answer: That the program may hurt the consumer's creditworthiness and creditors may sue or increase balances

The TSR requires disclosure that withholding payments may harm credit, lead to collection or lawsuits, and increase balances.

A debt relief company sends a text message promotion. Which law most directly governs its consent requirements?

Answer: Telephone Consumer Protection Act

Marketing texts are treated as calls under the TCPA and need appropriate consent.

What is the most compliant way to use social media influencers to promote a debt relief program?

Answer: Require clear disclosure of the material connection and only substantiated claims

FTC Endorsement Guides require disclosing material connections, and the advertiser is liable for influencers' claims.

Which statement about state law in debt relief marketing is most accurate?

Answer: Many states impose licensing, fee caps, or registration requirements that marketers must follow

Numerous states require licensing or registration and cap fees for debt relief services, alongside federal rules.

A competitor's comparison ad claims it 'charges no fees ever' while it actually charges fees after settlements. What is the issue?

Answer: The claim is a material misrepresentation of costs

Misrepresenting the cost of debt relief services is a prohibited deceptive claim.

Which metric best evaluates the quality of a debt relief lead source for business development?

Answer: Enrollment-to-completion rate and client outcomes from that source

Lead quality is best measured by enrollments that complete successfully, not volume or cheap cost alone.

Under the TSR, a debt relief fee for settling one of several enrolled debts must be calculated how?

Answer: Proportionally to the enrolled debt settled, or as a percentage of the amount saved

The TSR requires fees to be proportional to the individual debt settled or a fixed percentage of savings.