Certified Regulatory Compliance Manager (CRCM) — Question 138

ABC Bank has an interactive Internet Web site at which it takes consumer credit applications. At the time an applicant completes an application on the Web site and submits it, the applicant also is asked for his or her email address. If the application is denied, ABC sends an adverse action notice to the applicant's email address listed on the application. Using this procedure, what is ABC Bank's responsibility?

Answer options

• A. Post the notice on its Web site also
• B. Send a paper notice by regular mail also
• C. Use a credit scoring system
• D. Obtain the applicant's affirmative consent before sending the notice

Correct answer: D

Explanation

ABC Bank must obtain the applicant's affirmative consent before sending the adverse action notice via email to ensure compliance with regulatory requirements. Posting the notice online or sending a paper notice is not necessary if the applicant has consented to email communication. The use of a credit scoring system is unrelated to the notification process in this context.