A lender is allowed to make an unsolicited telephone call to a potential customer if:

• A. they wish to offer the client a protection policy.
• B. they wish to offer the client a housing loan.
• C. the individual is listed in the residential telephone book.
• D. the potential customer is related to an existing customer.

Answer: (A)

Unsolicited calls are generally restricted to prevent cold marketing, but there is a specific exception that applies to offering a protection policy. A protection policy is a loan-related insurance product designed to help with loan repayments in events like death or disability. Because this is an optional, protective product linked to the loan, it may be discussed with a potential customer in a telemarketing context.

Marketing a housing loan by phone is typically not permitted as a cold call, since it promotes a credit product. Being listed in a public telephone directory or being related to an existing customer does not, by itself, create permission to initiate unsolicited marketing calls under these rules. So the only scenario that fits the exception is offering a protection policy.