HomeDebt collector examIf you successfully complete this exam you will receive a certificate of achievement via the email you provide below. The signed certificate must be included with your application for a debt collector licence.Step 1 of 119%I prefer to respond anonymously Yes NoName First Last Email Enter Email Confirm Email Collection AgencyAn individual's credit report may include information that is adverse to their interests for what maximum period of time?* 6 years 7 years 2 years 4 yearsThe time limitation on reporting adverse information on a debtor's credit report may be extended by the purchase of the debt by a collection agency or other third party.* False TrueA collector is a person who:* Collects and attempts to collect debts it has purchased Collects or attempts to collect its own debts (as the original creditor) All of these options Collects or attempts to collect debt owed to another personThreatening to publish a debtor's failure to pay a debt, in a manner generally accessible to the public, is acceptable under the Act.* True FalseAfter sending a written notice to a debtor of the assignment of the debt for collection, the collector must wait:* 14 days before verbally contacting the debtor 7 days before verbally contacting the debtor 24 hours before verbally contacting the debtor 5 days before verbally contacting the debtor There is no required waiting periodAn acceptable reason to contact debtors at their place of employment is to:* Obtain a debtor's residential contact information Confirm a debtor's income Determine the frequency of the debtor's paydays None of theseA debtor may agree to be contacted by the collector at their place of employment.* False TrueA debtor can compel a collection agency to contact them in writing only if:* The debtor submits the demand by email or letter and provides a mailing or emailing address where the debtor can be reached. Neither of these The debtor provides a mailing address for the collector to use Both of theseIt is at the discretion of the collector whether the collection agency will deal with a debtor's lawyer or not, after being advised in writing by the debtor to do so.* False TrueApart from being authorized by the debtor to do so, the only reason a collector may communicate with a debtor's employer is to confirm the debtor's employment, business title and business address.* True FalseUnless a family member or friend of a debtor is a co-borrower or guarantor, they are not responsible for paying for the debt.* False TrueA collector may not state or threaten the possibility of a legal proceeding against a debtor if:* The collector does not already have the creditor's written authority The debtor has proven to be trustworthy The debtor is unemployed or otherwise unable to pay the debtA creditor may give a collector the authority to bring or continue a legal proceeding by:* Granting the authority in writing in each case Both of these options Granting the authority in the collection agreement between the creditor and collection agentStating the collector's intent to bring or continue a legal proceeding for which no lawful authority exists would be considered:* Too much pressure for a first-time debtor Acceptable practice for a debtor who is refusing to pay A prohibited collection practice and possibly a deceptive trade practiceA collector who is not the original creditor or an employee of the original creditor contacting a debtor and presenting themselves as the creditor is acceptable.* True FalseAdvising a debtor that an unfavourable payment history will remain on their credit report for longer than 6 years from the date the payment was FIRST late or missed is misleading and contrary to the legislation.* True FalseA debtor who refuses to either pay a lawful debt or make a suitable payment arrangement enables the collector to contact the local police for assistance.* True FalseA collector is able to automatically garnish a debtor's wages under the Business Practices & Consumer Protection Act.* False TrueWhen speaking with a debtor's family member or neighbour, a collector may identify themselves as someone other than a collector to avoid embarrassing the debtor.* True FalseWhen a collection agent purchases a debt:* The collection agent does not require a licence to collect the debt since it now owns the debt A licence is still required to collect the debt since the agent is not the original creditor The time period for reporting the debt on the debtor's credit report is reset to the beginning None of theseIf a collector engages in a prohibited collection practice, can the debtor sue for any damages or loss that result from the prohibited practice?* Yes NoOne of only 2 reasons a collector can contact a debtor's family or acquaintances is:* To determine from the person contacted where the debtor is employed To have the person contacted forward a message to the debtor None of the reasons To determine if the person contacted will help pay the debtA collection agent may add interest to a debt when the debt is in arrears even if the credit agreement does not provide for interest:* Only for the time period the debt is in arrears Only on the amount of the debt that is in arrears Both of those Neither of theseA collector is assigned a purchased debt to collect. Must the collector know and inform the debtor of the name of the original creditor?* No YesIf a debtor informs you that they are disputing the debt you are calling about, you:* Can demand to see the evidence that they have Must stop trying to collect the debt if the debtor informs you and the creditor in writing of the dispute Can still contact them about the debt until they actually go to courtIf a debtor expresses concern about the number of calls they are receiving from a collector, the collector:* Must ensure the frequency of calls is not excessive or unreasonable in the circumstances May increase the frequency of calls because the debtor is not cooperating May continue to make calls at the same frequency because there is nothing wrong with the number of calls they’re making to the debtorWhen a collection agency begins to collect a debt:* The debt is already so overdue that extra pressure is now OK to use on a debtor to make the debtor pay the debt The time limitation for collecting on the debt starts over The time limitation remains unchanged and is still calculated from the date the debt first became past-dueOn a statutory holiday, a debtor or a debtor’s employer can only be called:* During regular business hours If the debtor or the debtor’s employer requests and pre-arranges a time to be contacted NeverWhen a debtor has requested communication in writing only but has not responded to any of the letters sent to them by the collector,* The debtor can be sued for not answering collection letters The debtor is acting illegally The collector cannot begin to call the debtor again The debtor is ignoring the fact that they have not paid their bill and the collector should start calling againDebtors are not obligated to communicate with debt collectors if they are contacted at their places of employment.* False TrueCollection calls can be made on Sundays between 1pm and 5pm, local time for the debtor.* False TrueCollection calls can be made on BC Statutory holidays anytime during the day until 9pm each evening.* False TrueWho does NOT need a debt collection licence issued by Consumer Protection BC?* Collection agencies located outside of BC collecting outside BC Collection agencies located outside of BC collecting into BC Debt buyers collecting their purchased debts Collection agencies located in BCA collector does not know who the original creditor of an assigned debt was but does provide the debtor with an account number of the debt. Can the collector attempt to collect the debt?* No YesA debtor previously provided a valid email address to the creditor. The collector prefers a phone number so he may call the debtor. May the collector call the debtor at work to obtain a phone number?* Yes NoA collector is unsuccessful in contacting a debtor by email which is the only contact info they have for the debtor. The collector wants to call the debtor at work to obtain the debtor's home phone number. Is this allowed?* No YesDespite best efforts, a collector cannot reconcile the amount currently owing on a debt with the amount owed when the debt first became due and payable. What must the collector do?* Fudge the numbers so they seem credible Tell the debtor a breakdown will be provided later Attempt to collect only the initial amount owing when the debt first became due Do not commence any collection activity until a reconciliation has been done Discount the debt by 25% and attempt to collect that amountHow many notices must a debtor be sent by a collector intending to sue on a debt assigned to the collector?* None One Three TwoWhat could happen if a collector does not notify a debtor that the collector intends to sue the debtor for recovery of a debt?* All of these The proceeding could fail in court The debtor could use the failure to provide the required notice as a defense to the action The collector is prohibited from bringing the proceedingMust a creditor collecting its own debt give notice to a debtor that a proceeding may be brought against the debtor to recover the debt before bringing such an action?* Yes NoCould a collector threatening a debtor with debtor's prison if a debt is not paid be charged with an offence under the Business Practices and Consumer Protection Act?* No YesA 3rd party collector is identifying themselves to the debtor as the employee of a creditor and not as a debt collection agent. Is this allowed?* Yes NoThe legislation allows a collector to attempt to contact a debtor at their place of employment under two very restricted circumstances. Does the law also require the debtor to communicate with the collector during either of these attempts?* No YesCan the director publish the name of a creditor against whom an action has been taken?* No YesA father who guaranteed their son's car loan, which is now in default, has been contacted by a collector attempting to collect the loan. The father wants Consumer Protection to tell the collector to stop calling them. Is this possible?* Yes NoA small collection agency decides it would be easiest to only have 1 bank account for its business, mixing both funds collected from debtors and other company funds. Is this acceptable?* No YesA debtor is fired from their job because of repeated calls from a collector that required them to leave their work station for extended periods. Can the debtor bring a legal action against the collector for any damages or losses that resulted from their loss of employment?* Yes NoA debt collection agency employee located in Ontario has been assigned a debt for collection that is owed by a person living in BC. The agency is licensed in Ontario but not in BC. Does the Ontario agency require a BC licence to collect this debt?* Yes NoWhat collection cost(s) can a collector lawfully attempt to recover from a debtor?* None of these costs Costs incurred collecting debts in arrears of more than 2 years Default costs set out in the lending agreement Costs of more than $50 All of these costs Court-ordered costsA collector wants to send the notice to a debtor to begin verbal collection activity. They do not have the debtor's home address or email. To get this information they call the debtor at home. Is this lawful since the initial notice has not been provided to the debtor?* No YesCAPTCHA TweetShareSharePin0 Shares
