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?* Bankruptcy and Insolvency Act Business Corporation Act Debtors Assistance Act Business Practices and Consumer Protection 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 .* False TrueA debt collector must be licensed in BC if they are contacting BC debtors from an office located in:* Anywhere in the world Canada BCWho can allege harassment due to the manner or frequency of communication with a collector?* A debtor's neighbour None of these All of these A debtor's employer A debtor's family memberBefore being requested to pay, debtors must know:* What percentage of their payments go to the creditor That the collector is located in BC Who the collector is and under what authority they are demanding payment of the debt None of these All of theseA debtor must communicate with a debt collector if they are contacted at their place of employment.* False TrueIn 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.* False TrueCollection 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 TrueIf there is no history of dishonoured payments, a collector must allow a debt to be paid by cheque or debit card.* False TrueUnless there is a history of dishonoured payments, a debtor must be allowed to make a debt payment using a cheque.* False TrueA collector cannot collect an amount that is more than the amount of the debt owed to the creditor.* False TrueFor a credit agreement that is silent about interest charges on overdue amounts, a debtor is only responsible to pay:* Simple interest Court-ordered interest Compound interest Interested applied on the debt by the collector Interest applied on the debt by the creditorA debtor's spouse is equally liable for a debt even if she or he is not named in the credit agreement.* 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 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 FalseWhen 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 FalseA collector may charge an uncooperative debtor for the reasonable collection costs incurred by the collector while collecting the debt.* 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.* 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 YesFor credit reporting purposes, which of the following events is used as the starting date for the 6-year maximum reporting period:* The date the account first went into arrears under the terms of the credit agreement The date the debt was assigned to the collection agency The date of the last payment on the debt The date the account is written off as uncollectable by the creditor The date when the debt arrears is first reported to a credit reporting agencyA collector is assigned a purchased debt to collect. Must the collector know and inform the debtor of the name of the original creditor?* No YesA debtor told a collector that their mother may help pay a debt. Can the collector call the mother to pursue payment?* Yes NoIf a collector contacts a person about a debt they owe and the person says they are not the debtor, the collector:* Can try to convince the person that they do indeed owe the debt Can keep calling until they are convinced the person is not the debtor Must stop contacting the person and double-check the information they haveWhen a collection agency begins to collect a debt:* The time limitation remains unchanged and is still calculated from the date the debt first became past-due 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 overWhen 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 acting illegally The debtor is ignoring the fact that they have not paid their bill and the collector should start calling again The debtor can be sued for not answering collection letters The collector cannot begin to call the debtor againUnder 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 FalseDebtors are not obligated to communicate with debt collectors if they are contacted at their places of employment.* 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 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.* False TrueCan a collector attempt to collect a debt if the collector does not know who the original creditor was?* 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?* 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 amountA collector has an email 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 NoWhat 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 The debtor could use the failure to provide the required notice as a defense to the action All of these The proceeding could fail in courtBefore contacting a debtor's employer to obtain certain information about a debtor, what must the collector have done first from the options provided (among other things)?* None of these things Sent a similar request first to the registered corporate office of the employer Reviewed the file with a lawyer Given notice to the debtor that the collector intends to bring proceedings to collect the debt Obtained the employer's legal name and mailing addressA 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 the number of times a collector calls a debtor about a debt (call frequency) be considered as harassment of the debtor under the legislation?* 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?* Ensure the money is deposited directly into the collection agencies' trust account within 5 days of when the money was received Calculate their commission on the payment and advise their employer accordingly None of the 3 actions, All of the 3 actions 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 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 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?* Depends on situation Yes NoWhat penalties would collectors who contravene any of the legislative provisions regulating debt collection practices expose themselves to?* Administrative monetary penalties Convictions of an offence Legal proceedings for damages or loss Licence suspensions Licence cancellations All of theseA 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?* No YesWhat collection cost(s) can a collector lawfully attempt to recover from a debtor?* Costs of more than $50 None of these costs Default costs set out in the lending agreement Court-ordered costs Costs incurred collecting debts in arrears of more than 2 years All of these costsA 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 NoCan a debtor "call block" a collector so avoid future telephone calls from the collector?* Yes Not governed under the BPCP Act or Debt Collertion Industry Regulation NoCAPTCHA TweetShareSharePin0 Shares
