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 AgencyDo debt collection agency employees performing collection functions from or into BC need a BC collector licence?* No YesA collector is a person who:* Collects and attempts to collect debts it has purchased Collects or attempts to collect debt owed to another person All of these options Collects or attempts to collect its own debts (as the original creditor)Threatening to publish a debtor's failure to pay a debt, in a manner generally accessible to the public, is acceptable under the Act.* False TrueBefore being requested to pay, debtors must know:* What percentage of their payments go to the creditor That the collector is located in BC All of these Who the collector is and under what authority they are demanding payment of the debt None of theseAfter sending a written notice to a debtor of the assignment of the debt for collection, the collector must wait:* There is no required waiting period 5 days before verbally contacting the debtor 24 hours before verbally contacting the debtor 7 days before verbally contacting the debtor 14 days before verbally contacting the debtorApart 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 FalseIt is a legislated requirement that a debtor's employer respond to a collector's inquiries about an employee.* True FalseA reasonable amount of pressure can be applied to family and friends of debtors in order to have the debtor contact the collector.* False TrueCollection calls can be made to BC residents on Sundays between 9am and 5pm.* True FalseUnless requested by the employer, a collector may not contact a debtor's employer on a BC statutory holiday.* True FalseIf there is no history of dishonoured payments, a collector must allow a debt to be paid by cheque or debit card.* True FalseUnless there is a history of dishonoured payments, a debtor must be allowed to make a debt payment using a cheque.* False TrueIt is acceptable to demand that a debtor submit written notice or payment via registered mail.* True FalseFor a credit agreement that is silent about interest charges on overdue amounts, a debtor is only responsible to pay:* Simple interest Court-ordered interest Interest applied on the debt by the creditor Compound interest Interested applied on the debt by the collectorStating the collector's intent to bring or continue a legal proceeding for which no lawful authority exists would be considered:* A prohibited collection practice and possibly a deceptive trade practice Too much pressure for a first-time debtor Acceptable practice for a debtor who is refusing to payA collector may not use an alias unless the alias appears on their BC collector licence issued by Consumer Protection BC.* False TrueAt the beginning of a communication with a debtor, the collector must clearly identify themself to a debtor as a third-party collection agent.* False TruePromising a debtor that derogatory credit information will be deleted from the debtor's credit report following full payment of a debt is acceptable.* True FalseA collector may refuse to give an uncooperative debtor their BC collection agent and employee licensing information.* False TrueWhen a collection agent purchases a 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 The collection agent does not require a licence to collect the debt since it now owns the debt None of theseA 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 debtor contacted about an overdue debt immediately begins swearing at the collector. In retaliation, the collector swears back at the debtor. Is this acceptable under the legislation?* No YesA collector is assigned a purchased debt to collect. Must the collector know and inform the debtor of the name of the original creditor?* No YesPreviously, a debtor had instructed a collector to contact them in writing only. However, the debtor has not replied to any of the written communications sent by the collector. In this case, can the collector begin telephoning the debtor again?* Yes NoYou have learned that a debtor will be home today to attend their brother's funeral. Since you cannot call them at work, can you call them at their home today?* Yes NoIf a collector contacts a person about a debt they owe and the person says they are not the debtor, the collector:* Must stop contacting the person and double-check the information they have Can keep calling until they are convinced the person is not the debtor Can try to convince the person that they do indeed owe the debtWhen 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 is ignoring the fact that they have not paid their bill and the collector should start calling again The debtor is acting illegally The collector cannot begin to call the debtor again The debtor can be sued for not answering collection lettersOn a debtor’s credit report, a past-due account will:* Be visible for a set time period that starts when the account becomes overdue Remain forever, until the debt is paid Be visible for a set time period which re-starts each time the debt is transferred to a new collection agencyUnder the Business Practices and Consumer Protection Act, any agreement by the debtor to waive or release a debtor's rights under the Act and it's regulation is void.* True FalseThe prohibited debt collection practices in the legislation are not applicable to third-party collection agents, creditors collecting their own debts or buyers of third party debts.* False TrueA collector does not require authorization from the debtor to communicate with a debtor's employer to confirm the debtor's wages, benefits or personal information related to collecting the debt.* True FalseWho does NOT need a debt collection licence issued by Consumer Protection BC?* Collection agencies located in BC Collection agencies located outside of BC collecting into BC Collection agencies located outside of BC collecting outside BC Debt buyers collecting their purchased debtsMust a collector be able to account for any increase in the amount of a debt since it was first due and payable?* No YesA collector demands a fee to provide a debtor with a breakdown amount of an old debt. The debtor claims he must be provided with the information before the debt can be collected and with no cost. Who is right?* The debtor The collectorA 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 NoS.116(1) allows a collector to contact a debtor at work if unsuccessful contacting the debtor at their home; address, phone number or email. How many times can the collector attempt to communicate with an uncooperative debtor at work?* Only 2 times 3 times maximum As many times as required Only 1 time 0 timesA 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 YesAfter reaching a debtor on their home telephone, the collector must do what as soon as the contact is established?* Be adaptive and do what the collector believes will result in payment of the debt Threaten the debtor with legal action if the debtor hangs up Demand payment of the debt Identify themself and their authority to collect the debt and give the debtor details about the debt ownership and amount owed Identify themself and their authority to collect the debtMust 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?* No YesCan a collector acting for a certain creditor also act as a debt repayment agent for a debtor if the debtor owes money to that certain creditor?* 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?* No YesHow long does an employee of a debt collection agency have to deposit payments received from debtors into the agency's trust account?* 5 days 10 days 2 weeks Until the end of the month in which it was received Until the end of the following month in which it was receivedThe best ploy to use to get an uncooperative debtor to take a collection call is to represent the call as coming from Prizes Section of the BC Lottery Corporation.* False TrueA debtor is refusing to answer collection calls from a collector. The collector has the debtor's daughter's telephone number. Can the collector call the daughter to discuss the debt?* Yes NoA 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 debtor in arrears is working out-of-country. Can their spouse, who has no liability for the debt, be used as a go-between to try to have the debt paid?* 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?* Yes NoThe lending agreement for a debt that is in arrears is silent about interest being charged on the outstanding loan balance. The collector who was assigned the account suggests that 10.9% APR interest be added to the debt. Is this:* Unlawful and therefore not permitted Too high, maximum should be the bank prime rate OK if the rate is the industry norm for that type of debt Reasonable and permittedA debt is on its third assignment with a new collection agency. The previous agencies did not properly document accounting of the debt. The new agency cannot account for the increase in the debt since it first became due. What can it do?* Not attempt to collect the debt Any of these actions Contact the creditor and obtain sufficient information to prepare the accounting Contact the previous agencies for enough information to prepare the accountingA collector does not have a debtor's home contact information. Is a collector allowed to contact a debtor's neighbour to request the debtor's home address, phone number or email?* Yes NoCAPTCHA TweetShareSharePin0 Shares
