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 Debtors Assistance Act Bankruptcy and Insolvency Act Business Practices and Consumer Protection ActThe time limitation on reporting adverse information on a debtor's credit report may be extended by the purchase of the debt by a collection agency or other third party.* True FalseA collector is a person who:* Collects or attempts to collect debt owed to another person Collects or attempts to collect its own debts (as the original creditor) All of these options 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.* False TrueAfter sending a written notice to a debtor of the assignment of the debt for collection, the collector must wait:* 7 days before verbally contacting the debtor 24 hours before verbally contacting the debtor 14 days before verbally contacting the debtor There is no required waiting period 5 days before verbally contacting 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 FalseIt 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.* False TrueA collector can communicate with a family member or relative of a debtor if:* All of thse None of these The debtor authorized the collector to do so The debtor is unavailable The debtor is unemployedOn a statutory holiday, a BC debtor may receive a collection call only if they have specifically requested to be contacted on that day.* 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.* True FalseWritten notice must be provided by a collector to a debtor before starting a legal proceeding to recover that debt.* False TrueA collector may not state or threaten the possibility of a legal proceeding against a debtor if:* The debtor has proven to be trustworthy The collector does not already have the creditor's written authority The debtor is unemployed or otherwise unable to pay the debtA creditor may give a collector the authority to bring or continue a legal proceeding by:* Granting the authority in the collection agreement between the creditor and collection agent Granting the authority in writing in each case Both 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.* 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.* 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.* True FalseNon payment of a contractual debt is a criminal offence and may result in 6 months imprisonment or a $10,000 fine.* True FalseA collector is able to automatically garnish a debtor's wages under the Business Practices & Consumer Protection Act.* True FalseIt is acceptable for a collector to identify themselves as someone other than a collector when trying to locate a 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 TrueWho can a debtor sue if the debtor has suffered loss or damage due to a prohibited collection practice?* The collection agent The collector BothA 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 thesePreviously, 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 NoIf a debtor informs you that they are disputing the debt you are calling about, you:* Can still contact them about the debt until they actually go to court 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 disputeIf a debtor expresses concern about the number of calls they are receiving from a collector, the collector:* Must ensure the frequency of calls is not excessive or unreasonable in the circumstances May increase the frequency of calls because the debtor is not cooperating May continue to make calls at the same frequency because there is nothing wrong with the number of calls they’re making to the debtorBC's debt collection legislation applies to transactions, matters or things, regardless of whether they involve a consumer and or business.* True FalseUnder 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 TrueDebtors are not obligated to communicate with debt collectors if they are contacted at their places of employment.* False TrueCollection calls can be made on Sundays between 1pm and 5pm, local time for the debtor.* False TrueA 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 YesPrior 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 employment status of the debtor The credit limit on the account The debtors cell phone number, if anyA 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 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 notice sent to a debtor under S. 121 of the Act that states the collector intends to begin action to recover a debt can be general in nature and not reference the debt(s) owed that would be subject of the proceeding.* False TrueHow many notices must a debtor be sent by a collector intending to sue on a debt assigned to the collector?* One Three Two NoneBefore 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)?* Given notice to the debtor that the collector intends to bring proceedings to collect the debt Sent a similar request first to the registered corporate office of the employer None of these things Reviewed the file with a lawyer Obtained the employer's legal name and mailing addressCan 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 NoIf 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?* 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 NoHow 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 receivedThe 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?* No Yes 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?* Yes NoA 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?* 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 YesCan a debtor "call block" a collector so avoid future telephone calls from the collector?* No Yes Not governed under the BPCP Act or Debt Collertion Industry RegulationDebtors 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 theseCAPTCHA TweetShareSharePin0 Shares
