Operations & Process Management Flashcards

Before enrolling a client, which disclosure must a debt settlement provider make under the TSR?

Answer: How long it will take to get results and make settlement offers to each creditor

The TSR requires disclosing how long it will take to get results, including when offers will be made to each creditor.

Which statement is a required TSR disclosure when a program relies on clients not paying their creditors?

Answer: Not paying creditors may hurt the client's credit, and creditors may sue or step up collection

The TSR requires warning that stopping payments may damage creditworthiness and lead to lawsuits or more collection activity.

Besides the timeline, what amount must be disclosed before enrollment?

Answer: How much the client must save before the provider makes a bona fide offer to each creditor

Providers must disclose how much the client must build up before a bona fide settlement offer is made to each creditor.

A client calls in response to a TV ad for debt relief. Does the TSR's general media inbound-call exemption apply?

Answer: No, debt relief inbound calls from general media ads are still covered by the TSR

The FTC carved debt relief services out of the general media inbound exemption, so those calls stay covered.

If a provider's program allows creditors to keep charging interest and fees during the program, what must it disclose?

Answer: That balances may grow because of continuing interest, fees, and charges

Clients must be told that ongoing interest and fees may increase what they owe if the program depends on missed payments.

Which sales claim would MOST likely count as a deceptive misrepresentation in a debt relief call?

Answer: We guarantee to cut your debt by 60% with no effect on your credit

Promising a guaranteed reduction and no credit effect misrepresents the program's results and risks.

What is the main operational purpose of a recorded welcome or verification call after enrollment?

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

Verification calls confirm the client understands the terms and leave a compliance record.