Unsolicited Telephone Communication. During the visit, which MUST take place?

• A. Barrow Bank must explain the purpose of the standard financial statement and offer to assist Peter in completing this.
• B. Barrow Bank must ensure Peter completes the standard financial statement during the visit and follow up with supporting documentation.
• C. Peter must give written permission to Barrow Bank to allow them contact other parties regarding his financial situation.
• D. Barrow Bank must request that Peter completes the standard financial statement at a follow up meeting in his local branch.

Answer: (A)

When a lender initiates contact about a loan without a prior appointment, the important requirement is to be transparent about what information is being requested and why, and to offer real help in providing it. Explaining the purpose of the standard financial statement and offering to assist Peter in completing it ensures he understands what is being asked and can do so accurately. This approach supports informed consent and prevents pressure or confusion during the initial visit. It also sets the stage for proper assessment of affordability and credit risk without forcing immediate completion or involving third parties. The other options move away from this essential disclosure and assistance, such as mandating immediate completion, seeking permission to contact others, or delaying the request to a follow-up.