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 AgencyAn individual's credit report may include information that is adverse to their interests for what maximum period of time?* 4 years 2 years 7 years 6 yearsA collector is a person who:* Collects or attempts to collect debt owed to another person All of these options Collects and attempts to collect debts it has purchased Collects or attempts to collect its own debts (as the original creditor)The 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.* False TrueA debt collector must be licensed in BC if they are contacting BC debtors from an office located in:* Canada BC Anywhere in the worldA debt collector must notify a debtor in writing prior to:* Going to their place of employment Freezing a debtor's bank account Making the first collection callAn 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 theseIt 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 FalseA collector may only speak with a debtor's neighbour or relative if the collector has made 3 unsuccessful attempts to contact the debtor.* False TrueIt is a legislated requirement that a debtor's employer respond to a collector's inquiries about an employee.* False TrueExcept for Sundays and statutory holidays, a debtor may be contacted between the hours of 7 a.m. and 9 p.m., local time for the collector.* 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.* False TrueParents of a debtor may be contacted about a debt if:* Neither of these The debtor lives with them They guaranteed the debt which is in default Both of theseIf a person informs a collector that they are not the debtor, the collector must:* Stop contacting the individual None of these options Make reasonable efforts to ensure that the person is the debtor before contacting the person again Give up on collecting the debt All of these optionsA 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.* 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 TrueNon payment of a contractual debt is a criminal offence and may result in 6 months imprisonment or a $10,000 fine.* False TrueHow long does a collector have to identify themselves as a collection agent when first speaking with a debtor?* Sometime during the first phone call Within 5 minutes 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 TrueWhen a collection agent purchases a debt:* None of these 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 A licence is still required to collect the debt since the agent is not the original creditorTo 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 TrueIf 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 debt was assigned to the collection agency The date the account first went into arrears under the terms of the credit agreement The date when the debt arrears is first reported to a credit reporting agency The date the account is written off as uncollectable by the creditor The date of the last payment on the debtPreviously, 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?* No YesIf a debtor informs you that they are disputing the debt you are calling about, you:* Can demand to see the evidence that they have Must stop trying to collect the debt if the debtor informs you and the creditor in writing of the dispute Can still contact them about the debt until they actually go to courtWhen a collection agency begins to collect a 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-due The debt is already so overdue that extra pressure is now OK to use on a debtor to make the debtor pay the debtOn a statutory holiday, a debtor or a debtor’s employer can only be called:* During regular business hours If the debtor or the debtor’s employer requests and pre-arranges a time to be contacted NeverA collector may call a debtor’s employer to:* Let other people know that the debtor is not paying their bills Show a debtor that they can’t hide from their responsibility to pay the debt Request an agreement to garnish a debtor’s wages Confirm the debtor is employed there and to obtain the debtors title and work place addressIf 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 TrueBC's debt collection legislation applies to transactions, matters or things, regardless of whether they involve a consumer and or business.* True FalseA 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.* True FalseA 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 FalseCan a collector attempt to collect a debt if the collector does not know who the original creditor was?* Yes NoA 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 collector who has a home address of a debtor may only call the debtor before sending out the Section 115(1) initial notice if:* The collection agency usually only sends the initial notice by email so the email is needed All of these The collector has actual reasons to believe it is not correct The debtor has a reputation of lying to other collectors The address is from 3 years ago or longerA 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 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 amountWho must give notice to a debtor that a legal proceeding will be brought to recover a debt?* None of the 3 groups All 3 groups A collector assigned a debt for collection owing to another person A creditor collecting its own debt A debt buyer collecting on a purchased debtHow many notices must a debtor be sent by a collector intending to sue on a debt assigned to the collector?* Three Two None OneCan 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 YesCould 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?* No YesIf 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?* 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?* No YesA 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?* No YesA 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 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:* Reasonable and permitted 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 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?* Contact the creditor and obtain sufficient information to prepare the accounting Any of these actions Not attempt to collect the debt Contact the previous agencies for enough information to prepare the accountingA collector wants to send the notice to a debtor to begin verbal collection activity. They do not have the debtor's home address or email. To get this information they call the debtor at home. Is this lawful since the initial notice has not been provided to the debtor?* No YesA 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 YesCAPTCHA TweetShareSharePin0 Shares
