Operations & Process Management Flashcards

Under the TSR, who must own the funds held in a debt settlement dedicated account?

Answer: The customer

The customer owns the funds held in the account and any interest earned.

Where must a TSR-compliant dedicated account be held?

Answer: At an insured financial institution

The TSR requires the dedicated account to be held at an insured financial institution.

A client asks to leave the program and withdraw their savings. Under the TSR, how soon must they receive the funds (minus fees already earned)?

Answer: Within 7 business days

Clients can withdraw at any time without penalty and must receive their funds within seven business days.

Which relationship between the debt relief provider and the dedicated account administrator does the TSR prohibit?

Answer: The provider owning, controlling, or being affiliated with the administrator

The administrator must not be owned or controlled by, or affiliated with, the debt relief provider.

Who may charge a reasonable fee for maintaining the dedicated account under the TSR?

Answer: The independent account administrator

The TSR lets the independent entity administering the account charge reasonable fees for its services.

A client misses two scheduled deposits in a row. What is the BEST operations response?

Answer: Contact the client to review their budget and adjust the deposit schedule if possible

Proactive outreach and adjusting the deposit plan help keep clients in the program and keep it workable.

Which control BEST prevents fees from being pulled from a client's dedicated account before they are earned?

Answer: An automated fee trigger linked to a documented settlement, client approval, and a recorded creditor payment

Building the TSR conditions into the system as automated triggers stops premature fee withdrawals.