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 AgencyWhat is the name of the legislation that governs debt collection activity in British Columbia?* Business Corporation Act Bankruptcy and Insolvency Act Business Practices and Consumer Protection Act Debtors Assistance ActThe debt collection provisions of the Business Practices and Consumer Protection Act apply only to transactions involving a consumer and do not apply to business-to-business transactions or debts .* True FalseAn individual's credit report may include information that is adverse to their interests for what maximum period of time?* 2 years 6 years 4 years 7 yearsA debt collector must be licensed in BC if they are contacting BC debtors from an office located in:* Canada Anywhere in the world BCA debt collector must notify a debtor in writing prior to:* Going to their place of employment Making the first collection call Freezing a debtor's bank accountAn 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 must communicate with a debt collector if they are contacted 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. Both of these The debtor provides a mailing address for the collector to use Neither of theseCollection 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.* False TrueUnless there is a history of dishonoured payments, a debtor must be allowed to make a debt payment using a cheque.* True FalseA collector cannot collect an amount that is more than the amount of the debt owed to the creditor.* 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 be required to show evidence that they believed the person they contacted to pay a debt was actually the debtor.* True FalseA collector may not state or threaten the possibility of a legal proceeding against a debtor if:* The debtor has proven to be trustworthy The debtor is unemployed or otherwise unable to pay the debt The collector does not already have the creditor's written authorityAt the beginning of a communication with a debtor, the collector must clearly identify themself to a debtor as a third-party collection agent.* False TrueNon payment of a contractual debt is a criminal offence and may result in 6 months imprisonment or a $10,000 fine.* True FalseHow long does a collector have to identify themselves as a collection agent when first speaking with a debtor?* Within 5 minutes Sometime during the first phone call Only after the collector believes the debtor may not pay the debt ImmediatelyWhen 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 TrueA collector may charge an uncooperative debtor for the reasonable collection costs incurred by the collector while collecting the debt.* True FalseIt is considered an unreasonable collection practice for a collector to advise a debtor that the debtor will be responsible for the creditor's lawyer fees for an action that would be heard in Provincial Court.* True FalseIf a collector engages in a prohibited collection practice, can the debtor sue for any damages or loss that result from the prohibited practice?* No YesA 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 for each late payment no matter when the late payment is made Only once regardless of the number of late payments or when they are made NeverA collector is assigned a purchased debt to collect. Must the collector know and inform the debtor of the name of the original creditor?* No YesOn a statutory holiday, a debtor or a debtor’s employer can only be called:* If the debtor or the debtor’s employer requests and pre-arranges a time to be contacted Never During regular business hoursOn a debtor’s credit report, a past-due account will:* 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 agency Be visible for a set time period that starts when the account becomes overdueA collector may call a debtor’s employer to:* Request an agreement to garnish a debtor’s wages Confirm the debtor is employed there and to obtain the debtors title and work place address Show a debtor that they can’t hide from their responsibility to pay the debt Let other people know that the debtor is not paying their billsIf they are located outside of BC, debt collection employees are not required to be licensed in BC if they are only calling into BC.* False TrueDebtors are not obligated to communicate with debt collectors if they are contacted at their places of employment.* True FalseCollection calls can be made on BC Statutory holidays anytime during the day until 9pm each evening.* True FalseWho 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 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?* No YesA debtor has provided a valid email to a creditor. The collector has not yet provided written notification to the debtor. The collector wants to contact the collector by phone instead of email, can they do this?* No YesA collector has a debt to collect and wants to confirm an old home address in the collection file for the debtor to ensure it is still correct. Can they call the debtor at work to do so?* 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 debtWho must give notice to a debtor that a legal proceeding will be brought to recover a debt?* All 3 groups A creditor collecting its own debt None of the 3 groups A collector assigned a debt for collection owing to another person A debt buyer collecting on a purchased 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?* Yes NoA collector who fails to provide a debtor with written notice that the collector intends to bring proceedings to collect a debt can be charged with an offence under the Act.* False TrueCan a collector threaten or actually inform a defaulting debtor that the collector will inform the debtor's other creditors of the default if the debt is not paid immediately?* Yes NoA 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?* Yes NoA 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?* No YesA 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 YesThe 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 Too high, maximum should be the bank prime rate Unlawful and therefore not permitted Reasonable and permittedWhat collection cost(s) can a collector lawfully attempt to recover from a debtor?* Costs of more than $50 All of these costs Costs incurred collecting debts in arrears of more than 2 years Court-ordered costs None of these costs Default costs set out in the lending agreementA collector only has a home address for a debtor but wants a telephone number as well, which the debtor has refused to provide. Can the collector call a family member or neighbour in an attempt to obtain the number?* 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?* No YesCan a debtor "call block" a collector so avoid future telephone calls from the collector?* No Not governed under the BPCP Act or Debt Collertion Industry Regulation YesCAPTCHA TweetShareSharePin0 Shares
