2.59.412    AFFIRMATIVE ELECTION TO PURCHASE AND ACKNOWLEDGMENT OF RECEIPT OF DISCLOSURES

(1) Before entering into a debt cancellation contract or debt suspension agreement, a credit union shall obtain the member's written affirmative election to purchase the contract and a written acknowledgment of receipt of the disclosures required under ARM 2.59.408.

(2) The election and acknowledgment information must be conspicuous, simple, direct, readily understandable, and designed to call attention to its significance.

(3) The election and acknowledgment information satisfies these standards if it conforms to the following requirements:

(a) if the sale of a contract occurs by telephone, the member's affirmative election to purchase may be made orally, provided that the credit union:

(i) maintains sufficient documentation to show that the member received the short-form disclosures substantially similar to ARM 2.59.413(1) and then affirmatively elected to purchase the contract;

(ii) mails to the member the affirmative written election and written acknowledgment together with a long-form disclosure substantially similar to ARM 2.59.413(2), within three business days after the telephone solicitation, and maintains sufficient documentation to show it made reasonable efforts to obtain the documents from the member; and

(iii) permits the member to cancel the purchase of the contract without penalty within 30 days after the credit union has mailed the long-form disclosures to the member; or

(b) if the contract is solicited through written materials such as mail inserts or "take one" applications and a credit union provides only the short-form disclosures in the written materials, then the credit union shall mail the acknowledgment of receipt of disclosures, together with a long-form disclosure as provided under ARM 2.59.413(2), to the member within three business days, beginning on the first business day after the member contacts the credit union or otherwise responds to the solicitation. A credit union may not obligate the member to pay for the contract until after the credit union has received the member's written acknowledgment of receipt of disclosures unless the credit union:

(i) maintains sufficient documentation to show that the credit union provided the acknowledgment of receipt of disclosures to the member;

(ii) maintains sufficient documentation to show that the credit union made reasonable efforts to obtain from the member a written acknowledgment of receipt of the long-form disclosures; and

(iii) permits the member to cancel the purchase of the contract without penalty within 30 days after the credit union has mailed the long-form disclosures to the member.

(4) The affirmative election and acknowledgment may be made electronically in a manner consistent with the requirements of the Electronic Signatures in Global and National Commerce Act, 15 USC 7001 et seq. or the Uniform Electronic Transaction Act, Title 30, chapter 18, part 1, MCA.

History: 32-3-201, MCA; IMP, 32-3-609, MCA; NEW, 2011 MAR p. 2816, Eff. 12/23/11.