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#433454 - 10/04/05 03:09 PM Prescreen & telemarketing
straw Offline
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straw
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We are using a prescreen list of current customers who have inquiries or trade lines to solicit a loan application. We are going to both telemarket and mail to the customers.

The issue is when we telemarket and the customer declines the intitial offer but applies for a different product, do we stil have to read the Prescreen notice to the applicant.

For example we are making a firm offer for a home equity line of credit but the customer applies for a closed end loan.

Would we still read all the disclosures on the phone, since they are accepting the firm offer of credit but rather applying for a different loan product?

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#433455 - 10/04/05 10:55 PM Re: Prescreen & telemarketing
rlcarey Offline
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Galveston, TX
Yes - the disclosures are required regardless if the customer accepts the specific offer of credit or any offer of credit for that matter.
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#433456 - 10/07/05 10:11 PM Re: Prescreen & telemarketing
JAFA Offline
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JAFA
Joined: Jan 2004
Posts: 32
New Jersey
I have another question regarding pre-screened customers. We offered a pre-screen before the 8/1 implementation date and had a very low response rate. marketing would like to mail out a follow up offer with out initiating another pre-screen. Do the new disclosure requirements apply since the actual pre-screen was done pre 8/1?

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#433457 - 10/07/05 10:17 PM Re: Prescreen & telemarketing
rlcarey Offline
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Galveston, TX
What 8/1 implementation date are you referring too? Most of the prescreen requirements have been around for a long time.
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#433458 - 10/07/05 10:26 PM Re: Prescreen & telemarketing
rainman Offline
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rainman
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The 8/1 date was the date the new "layered" prescreen disclosures are required to be used.

The FTC rule just indicates that it is "effective" 8/1/05. It also says that "Any person who uses a consumer report" for a prescreen solicitation "shall, with each written solicitation made to the consumer about the transaction, provide the consumer with . . ." [ the layered disclosure ].

Based on that, I think you have to use the new notice.
Last edited by rainman; 10/07/05 10:36 PM.
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#433459 - 10/09/05 03:32 PM Re: Prescreen & telemarketing
Andy_Z Offline
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On the Net
I think Rainman hit the nail on the head. And your retention period would start anew as well.
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#433460 - 10/09/05 06:45 PM Re: Prescreen & telemarketing
rlcarey Offline
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Galveston, TX
I agree, but while there are now prescribed disclosures, the disclosure requirements have been around for some time now.
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#433461 - 10/11/05 02:05 PM Re: Prescreen & telemarketing
JAFA Offline
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JAFA
Joined: Jan 2004
Posts: 32
New Jersey
My marketing department would prefer not to provide the new disclosure verbiage because they feel that since 8/1 was the implementation date and the pre-screen took place before that date that they do not have to comply. They want to conduct a follow up mailing (due to a low response rate)and use the original pre-screen list (pre 8/1). My question is do they have to provide the new disclosures??

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#433462 - 10/11/05 02:36 PM Re: Prescreen & telemarketing
Dan Persfull Offline
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Bloomington, IN
IMO yes. The FI is to provide the disclosures with each written prescreened solicitation. Your so called follow-up is a new written prescreened solicitation. The fact you pulled the list prior to 8/1 is not a factor IMO.
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#433463 - 10/11/05 02:37 PM Re: Prescreen & telemarketing
Anonymous
Unregistered

Yes - the date the original prescreened list was pulled has no bearing on the effective date of the disclosure requirements.

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#433464 - 10/11/05 02:42 PM Re: Prescreen & telemarketing
JAFA Offline
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JAFA
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New Jersey
Thanks!

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#433465 - 03/23/06 07:44 PM Re: Prescreen & telemarketing
JohnDoe Offline
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jumping in this way after...
2 part questions -
1-FACTA specifically says written offers in its prescreening information. Does this mean if you are prescreening and making oral offers say at the closing of product 1, requirements do not apply?
2- Is it prescreening if you have an application for x a mortgage product, and use that data to approve a different credit product, say a auto loan, or a credit card. Is this prescreening or cross selling?

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#433466 - 03/24/06 06:34 PM Re: Prescreen & telemarketing
rlcarey Offline
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Galveston, TX
1) The definition of "firm offer of credit" found in 603(l) does not indicate that it has to be in writing. But from a practical standpoint, documentation of the offer if it is not in writing presents a dilemma.

2) If you are only relying on information provided to you by the customer, it would not be prescreening. If you are utilizing any information from the credit report - it would be cross-selling and would be prohibited.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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