Certified Regulatory Compliance Manager (CRCM) — Question 127

Safe National Bank has a variety of consumer lending products. Among them are debt cancellation contracts that allow for the cancellation of a consumer's debt if certain events happen. The bank solicits sales for these contracts when the consumer makes an in-person loan application. What does Safe National have to do at the time of the application and solicitation?

Answer options

• A. Nothing. Disclosures are required only when the contract is made.
• B. Give the customer the short-form disclosures orally.
• C. Give the customer the short-form disclosures in writing.
• D. Give the customer the long-form disclosures.

Correct answer: B

Explanation

The correct answer is B because oral disclosures are required at the time of solicitation for debt cancellation contracts. Option A is incorrect as disclosures are necessary when soliciting these products, not just when the contract is completed. Options C and D are also incorrect since short-form disclosures must be given orally in this context.