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App Withdrawn for Consumer Loan Application

Answered by: 
Dan Persfull

Question: 
A consumer loan application was taken by phone. The next day the customer withdrew the application because she had decided to finance through the furniture company which offered 12 months same as cash. At the time of application, the lender pulled credit and printed the Insurance Disclosure for Credit Application. Does the Consumer Credit Score Disclosure and Insurance Disclosure need to be mailed to the applicant even though the application was withdrawn and never signed?
Answer: 

If there was no solicitation for the sale of insurance the disclosure is not required. If the loan officer solicited insurance over the phone at the time they took the application they must follow the timing requirements. To the best of my knowledge there is no exception for a withdrawn application.

First published on BankersOnline.com 8/20/12

First published on 08/20/2012

Filed under: 
Lending
Filed under lending as: 
Loan Application

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