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 YesAn individual's credit report may include information that is adverse to their interests for what maximum period of time?* 7 years 6 years 4 years 2 yearsA collector is a person who:* 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) Collects and attempts to collect debts it has purchasedThe prohibited debt collection practices in the legislation are applicable to third-party collection agents as well as to creditors collecting their own debts and buyers of third party debts.* True FalseBefore being requested to pay, debtors must know:* All of these That the collector is located in BC What percentage of their payments go to the creditor Who the collector is and under what authority they are demanding payment of the debt None of theseA debtor may agree to be contacted by the collector at their place of employment.* True FalseA 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 Both of these The debtor provides a mailing address for the collector to useIt 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.* True FalseIn order for a debtor to dispute a debt and stop all collection activity, except legal action, the debtor must:* Clearly state their reasons for disputing the debt Notify the collector and the creditor in writing that the debt is disputed and the debtor wants the matter to go to court Both of these None of theseA reasonable amount of pressure can be applied to family and friends of debtors in order to have the debtor contact the collector.* True FalseFor a credit agreement that is silent about interest charges on overdue amounts, a debtor is only responsible to pay:* Simple interest Compound interest Interest applied on the debt by the creditor Interested applied on the debt by the collector Court-ordered interestParents of a debtor may be contacted about a debt if:* Neither of these The debtor lives with them Both of these They guaranteed the debt which is in defaultWritten notice must be provided by a collector to a debtor before starting a legal proceeding to recover that debt.* True FalseA 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 is unemployed or otherwise unable to pay the debt The debtor has proven to be trustworthyA 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.* 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.* True FalsePromising a debtor that derogatory credit information will be deleted from the debtor's credit report following full payment of a debt is acceptable.* False TrueAdvising 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 TrueOnce a collector has confirmed that they are communicating with the debtor, the collector must immediately identify themselves as a collector.* True FalseWhen a collection agent purchases a debt:* None of these A licence is still required to collect the debt since the agent is not the original creditor The collection agent does not require a licence to collect the debt since it now owns the debt The time period for reporting the debt on the debtor's credit report is reset to the beginningOne of only 2 reasons a collector can contact a debtor's family or acquaintances is:* To determine if the person contacted will help pay the debt To have the person contacted forward a message to the debtor To determine from the person contacted where the debtor is employed None of the reasonsA 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 credit agreement requires a debtor to pay a late fee of $50 if payments are not received in accordance with the agreement. How many times can the fee be charged?* Once each month that a payment is missed Only once regardless of the number of late payments or when they are made Only once for each late payment no matter when the late payment is made NeverRemembrance Day falls on a Sunday. When can a collector telephone a debtor?* None of these options Only between 11 a.m. and 9 p.m. Only between 1 p.m. and 5 p.m. Only after 11 a.m. until 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 YesWhen 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-dueParents or family of a debtor are responsible for the debt if:* the debtor is acting irresponsibly the debtor is away on vacation and cannot be reached to collect the debt they co-signed on the debt or guaranteed repayment of 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 can be sued for not answering collection letters The debtor is acting illegally The debtor is ignoring the fact that they have not paid their bill and the collector should start calling again The collector cannot begin to call the debtor againIf they are located outside of BC, debt collection employees are not required to be licensed in BC if they are only calling into BC.* True FalseThreatening to publish a debtor's failure to pay a debt in a manner generally accessible to the public constitutes harassment under the Act.* True FalseWho 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 Collection agencies located in BC Debt buyers collecting their purchased debtsA 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 name of the original creditor The debtors cell phone number, if any The credit limit on the account The employment status of the debtorA 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?* As many times as required 0 times Only 1 time 3 times maximum Only 2 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?* 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 debt Threaten the debtor with legal action if the debtor hangs up Demand payment of the debt Be adaptive and do what the collector believes will result in payment of the debtHow many notices must a debtor be sent by a collector intending to sue on a debt assigned to the collector?* None One Two ThreeWhat could happen if a collector does not notify a debtor that the collector intends to sue the debtor for recovery of a debt?* The collector is prohibited from bringing the proceeding All of these The debtor could use the failure to provide the required notice as a defense to the action The proceeding could fail in courtIf a debtor is called by a collector with such a frequency or in such a manner that it upsets the debtor, can the debtor end all future verbal communications with the collector?* Yes NoCan the number of times a collector calls a debtor about a debt (call frequency) be considered as harassment of the debtor under the legislation?* No YesThe 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 NoThe 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.* True FalseA 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?* Yes No Depends on situationA 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?* 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?* No YesA 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 NoA collector who was previously informed by the debtor to only communicate with the debtor in writing, wants to call the debtor and explain that legal proceeding in court may commence. Can the collector call the debtor?* 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
