Multiple Choice
Cassandra Phillips requested a loan to purchase a boat. She asked for $15,000 at 7.5 percent for seven years. The bank considered her request but decided, considering her income and credit history, the best offer of credit the bank could make was $10,000 at 8.25 percent for five years. Rhonda Mays, the loan officer, wrote a letter, setting forth the terms the bank could offer. The letter was mailed on July 1. Ms. Phillips received the letter and began to look elsewhere for a loan on the terms and conditions she wanted. Does the bank have any additional responsibility to Ms. Phillips?
A) No. Because the bank made the offer of a loan, there is no further responsibility.
B) No. Because the customer decided to look elsewhere, there is no further responsibility.
C) Yes. The bank must follow up with a phone call to determine if Ms. Phillips is still interested.
D) Yes. The bank must send an adverse action notice because Ms. Phillips did not take the bank's counteroffer.
Correct Answer:
Verified
Correct Answer:
Verified
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