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 AgencyIf a debtor agrees to pay for some or all of the costs incurred by a collector collecting or attempting to collect her or his debt, is the debtor bound by this agreement?* No YesA collector is a person who:* Collects or attempts to collect debt owed to another person Collects and attempts to collect debts it has purchased All of these options Collects or attempts to collect its own debts (as the original creditor)Who can allege harassment due to the manner or frequency of communication with a collector?* None of these All of these A debtor's family member A debtor's employer A debtor's neighbourA debt collector must notify a debtor in writing prior to:* Freezing a debtor's bank account Going to their place of employment Making the first collection callA debt collector may not communicate verbally with a debtor until the collector:* Receives agreement in writing that they can contact the debtor Obtains a copy of the debtor's credit report and reviews it Knows that the debtor is employed full-time Knows that the debtor is employed at least 15 hours per week Sends written notice to the debtorAn 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.* True FalseA collector can communicate with a family member or relative of a debtor if:* The debtor is unavailable The debtor authorized the collector to do so None of these The debtor is unemployed All of thseCollection calls can be made to BC residents on Sundays between 9am and 5pm.* False TrueOn a statutory holiday, a BC debtor may receive a collection call only if they have specifically requested to be contacted on that day.* False TrueUnless 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.* False TrueA collector cannot collect an amount that is more than the amount of the debt owed to the creditor.* False TrueParents of a debtor may be contacted about a debt if:* Neither of these Both of these They guaranteed the debt which is in default The debtor lives with themA collector may not state or threaten the possibility of a legal proceeding against a debtor if:* The debtor is unemployed or otherwise unable to pay the debt The debtor has proven to be trustworthy The collector does not already have the creditor's written authorityAdvising 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.* False TrueNon payment of a contractual debt is a criminal offence and may result in 6 months imprisonment or a $10,000 fine.* False TrueA 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 FalseHow long does a collector have to identify themselves as a collection agent when first speaking with a debtor?* Sometime during the first phone call Only after the collector believes the debtor may not pay the debt Immediately Within 5 minutesWhen 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.* False TrueTo compensate for allowing a debt to default, a debtor must pay any reasonable collection costs a collector may incur while collecting or attempting to collect the debt.* False TrueFor credit reporting purposes, which of the following events is used as the starting date for the 6-year maximum reporting period:* The date when the debt arrears is first reported to a credit reporting agency The date the debt was assigned to the collection agency The date of the last payment on the debt The date the account first went into arrears under the terms of the credit agreement The date the account is written off as uncollectable by the creditorPreviously, 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 NoRemembrance Day falls on a Sunday. When can a collector telephone a debtor?* Only after 11 a.m. until 5 p.m. Only between 11 a.m. and 9 p.m. None of these options Only between 1 p.m. and 5 p.m.You 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?* No YesOn a statutory holiday, a debtor or a debtor’s employer can only be called:* During regular business hours Never If the debtor or the debtor’s employer requests and pre-arranges a time to be contactedParents or family of a debtor are responsible for the debt if:* the debtor is away on vacation and cannot be reached to collect the debt the debtor is acting irresponsibly they co-signed on the debt or guaranteed repayment of the debtLegal action can only be threatened or stated to a debtor if:* The debtor is making excuses for not paying the debt and the collector knows the debtor is lying The debtor has no obvious reason not to pay the debt The creditor has previously approved, in writing to the collector, legal action for this debtor The debtor promised the collector they would pay the debt but have not done soUnder 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 must stop communicating with a debtor if the debtor notifies the collector to communicate with the debtor's lawyer and provides an address for the lawyer.* False TrueWho does NOT need a debt collection licence issued by Consumer Protection BC?* Collection agencies located outside of BC collecting into BC Collection agencies located outside of BC collecting outside 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?* Yes NoPrior to verbally contacting a debtor to collect a debt, a collector must provide written notification to a debtor that contains certain information about the debt. Which of the following MUST be included in the notice?* The time allowed the debtor to pay the debt The debtors cell phone number, if any The credit limit on the account The employment status of the debtor The name of the original creditorA 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?* No YesAfter failing to communicate with a debtor at their home, a collector calls the debtor at work. The debtor, immediately upon learning the caller is a debt collector, hangs up the telephone. Can the collector call them back at work?* No YesS.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?* 3 times maximum Only 2 times Only 1 time 0 times As many times as requiredA 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?* Yes NoWho must give notice to a debtor that a legal proceeding will be brought to recover a debt?* A debt buyer collecting on a purchased debt All 3 groups None of the 3 groups A creditor collecting its own debt A collector assigned a debt for collection owing to another personHow many notices must a debtor be sent by a collector intending to sue on a debt assigned to the collector?* Three One None TwoCould 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?* 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?* Yes NoUnder the Debt Collection And Repayment Regulation, what must an employee of a licensed collection agency do if the employee receives money from a debtor?* Calculate their commission on the payment and advise their employer accordingly All of the 3 actions None of the 3 actions, Ensure the money is deposited directly into the collection agencies' trust account within 5 days of when the money was received Thank the debtor for the paymentHow 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 receivedA collector called the manager of a debtor at their work and demanded that the debtor take the call because a debt the employee has is in arrears and payment is required immediately to avoid a default. Is this permitted?* No Depends on situation YesA 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:* OK if the rate is the industry norm for that type of debt Reasonable and permitted Unlawful and therefore not permitted Too high, maximum should be the bank prime rateA collection agency purchased the arrears debt of a business that has closed. Many of the debts appear, on their face, to be statute-barred under the Limitations Act. Can the agency collect the debts anyway?* Yes NoA 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 NoDebtors may be contacted at their cell phone number if:* They provided it to the collector They provided it to the creditor and the collector does not have a land line number for the debtor The debtor has a land line but requested to be called on their cell phone All of theseCAPTCHATweetShareSharePin0 Shares
