§ 10206. Lead solicitations
(a) As used in this section, “consumer” means a natural person residing in this State.
(b) A person shall not use the name, trade name, or trademark of any financial institution
in any written or oral advertisement or solicitation to a specifically identified
consumer, or that contains specific information on the account or loan of a specifically
identified consumer, for products or services, without the express written consent
of the financial institution.
(c) A person shall not include a loan number, loan amount, or any other specific loan
information that is publicly available and relative to a specifically identified consumer
in any written or oral solicitation for products or services unless the solicitation
clearly and conspicuously states on the front page of the correspondence in bold-face
type and in a type size at least equal to the body of the correspondence:
(1) that the person is not affiliated with or sponsored by the financial institution;
(2) that the solicitation is not authorized by the financial institution;
(3) that the financial institution has not supplied the person with any loan information
or personal or financial information referenced in the solicitation; and
(4) the name, address, and telephone number of the person who paid for the solicitation.
(d) The statements required by subsection (c) of this section shall also be given at the
time of any oral solicitation to a specifically identified consumer.
(e) In addition to any other authority provided elsewhere, the Commissioner may enforce
violations of this section against any person and may impose penalties as set forth
in sections 2110 and 2115 of this title; may recover costs and attorney’s fees, including court costs; may order any person
to cease violating this section; and may take such other actions as the Commissioner
deems necessary and appropriate. All administrative proceedings shall be conducted
in accordance with 3 V.S.A. chapter 25 and any rules adopted by the Commissioner on hearing procedures.
(f) A financial institution that has had its name, trade name, or trademark misrepresented
in a solicitation in violation of this section may, in addition to any other remedy
provided by law, bring an action in Superior Court in the county of its primary place
of business or, if its primary place of business is located outside Vermont, in Washington
Superior Court. The court shall award damages for each violation in the amount of
actual damages demonstrated by the financial institution or $5,000.00, whichever is
greater. In any successful action for injunctive relief or for damages, the court
shall award the financial institution reasonable attorney’s fees and costs, including
court costs.
(g) A person’s failure to comply with the requirements of this section shall constitute
an unfair and deceptive act in commerce enforceable under 9 V.S.A. chapter 63.
(h) For purposes of this section, each solicitation sent to each consumer constitutes
a separate violation. (Added 2009, No. 100 (Adj. Sess.), § 1; amended 2019, No. 20, § 100.)