Wis. Admin. Code Department of Financial Institutions DFI-CU 74.08 - Affirmative election to purchase and acknowledgement of receipt of disclosures required

(1) AFFIRMATIVE ELECTION AND ACKNOWLEDGEMENT OF RECEIPT OF DISCLOSURES. Before entering into a contract the credit union shall obtain a customer's written affirmative election to purchase a contract and written acknowledgement of receipt of the disclosures required by s. DFI-CU 74.07(2). The election and acknowledgement information shall be conspicuous, simple, direct, readily understandable, and designed to call attention to their significance. The election and acknowledgement satisfy these standards if they conform with the requirements in s. DFI-CU 74.07(2).

(2) TELEPHONE SOLICITATIONS. If the sale of a contract occurs by telephone, the customer's affirmative election to purchase may be made orally, provided the credit union does all of the following:

(a) Maintains sufficient documentation to show that the customer received the short form disclosures and then affirmatively elected to purchase the contract.

(b) Mails the affirmative written election and written acknowledgement, together with the long form disclosures required by s. DFI-CU 74.07, to the customer within 3 business days after the telephone solicitation, and maintains sufficient documentation to show it made reasonable efforts to obtain the documents from the customer.

(c) Permits the customer to cancel the purchase of the contract without penalty within 30 days after the credit union has mailed the loan form disclosures to the customer.

(3) SOLICITATIONS USING WRITTEN MAIL INSERTS OR "TAKE ONE" APPLICATIONS. If the contract is solicited through written materials such as mail inserts or "take one" solicitations and the credit union provides only the short form discourses in the written materials, then the credit union shall mail the acknowledgment of receipt of disclosures, together with the long form disclosures required by s. DFI-CU 74.07, to the customer within 3 business days, beginning of the first business day after the customer contacts the credit union or otherwise responds to the solicitation. The credit union may not obligate the customer to pay for the contract until after the credit union has received the customer's written acknowledgment of receipt of disclosures unless the credit union does all of the following:

(a) Maintains sufficient documentation to show that the credit union provided the acknowledgement of receipt of disclosures to the customer as required by this section.

(b) Maintains sufficient documentation to show that the credit union made reasonable efforts to obtain from the customer a written acknowledgement of receipt of the long form disclosures.

(c) Permits the customers to cancel the purchase of the contract without penalty within 30 days after the credit union has mailed the long form disclosures to the customer.

(4) ELECTRONIC ELECTION. An affirmative election and acknowledgement made electronically shall be in a manner consistent with the requirements of the Electronic Signatures in Global and National Commerce Act, 15 USC 7001 et seq.

Notes

Wis. Admin. Code Department of Financial Institutions DFI-CU 74.08

CR 05-046: CR Register January 2006 No. 601, eff. 2-1-06.