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 Business Practices and Consumer Protection Act Bankruptcy and Insolvency 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 debt collector must be licensed in BC if they are contacting BC debtors from an office located in:* BC Canada Anywhere in the worldA debt collector must notify a debtor in writing prior to:* Freezing a debtor's bank account Going to their place of employment Making the first collection callBefore being requested to pay, debtors must know:* That the collector is located in BC Who the collector is and under what authority they are demanding payment of the debt All of these None of these What percentage of their payments go to the creditorA debtor can compel a collection agency to contact them in writing only if:* Neither of these Both of these The debtor provides a mailing address for the collector to use The debtor submits the demand by email or letter and provides a mailing or emailing address where the debtor can be reached.It 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 can communicate with a family member or relative of a debtor if:* The debtor authorized the collector to do so None of these The debtor is unemployed All of thse The debtor is unavailableA collector may only speak with a debtor's neighbour or relative if the collector has made 3 unsuccessful attempts to contact the debtor.* True FalseA reasonable amount of pressure can be applied to family and friends of debtors in order to have the debtor contact the collector.* False TrueIf there is no history of dishonoured payments, a collector must allow a debt to be paid by cheque or debit card.* True FalseUnless there is a history of dishonoured payments, a debtor must be allowed to make a debt payment using a cheque.* False TrueFor a credit agreement that is silent about interest charges on overdue amounts, a debtor is only responsible to pay:* Interested applied on the debt by the collector Compound interest Interest applied on the debt by the creditor Court-ordered interest Simple interestParents of a debtor may be contacted about a debt if:* Neither of these Both of these They guaranteed the debt which is in default The debtor lives with themA 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 FalseAt the beginning of a communication with a debtor, the collector must clearly identify themself to a debtor as a third-party collection agent.* 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.* False TrueA collector may refuse to give an uncooperative debtor their BC collection agent and employee licensing information.* True FalseHow long does a collector have to identify themselves as a collection agent when first speaking with a debtor?* Sometime during the first phone call Only after the collector believes the debtor may not pay the debt Within 5 minutes ImmediatelyThe complete assignment or sale of a debt requires any resulting collection activity to be performed only by a licensed collection agent and collector.* True FalseTo 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 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.* False TrueA 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?* 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 Once each month that a payment is missed NeverA collector is assigned a purchased debt to collect. Must the collector know and inform the debtor of the name of the original creditor?* Yes NoIf 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 courtIf a debtor expresses concern about the number of calls they are receiving from a collector, the collector:* May continue to make calls at the same frequency because there is nothing wrong with the number of calls they’re making to the debtor May increase the frequency of calls because the debtor is not cooperating Must ensure the frequency of calls is not excessive or unreasonable in the circumstancesLegal action can only be threatened or stated to a debtor if:* The debtor has no obvious reason not to pay the debt The debtor promised the collector they would pay the debt but have not done so The creditor has previously approved, in writing to the collector, legal action for this debtor The debtor is making excuses for not paying the debt and the collector knows the debtor is lyingA 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 billsBC's debt collection legislation applies to transactions, matters or things, regardless of whether they involve a consumer and or business.* 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.* 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 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 in BC Collection agencies located outside of BC collecting into BC Debt buyers collecting their purchased debtsPrior 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 employment status of the debtor The credit limit on the account The name of the original creditor The debtors cell phone number, if any The time allowed the debtor to pay the debtA 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?* Yes NoA 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?* 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?* 0 times Only 2 times Only 1 time As many times as required 3 times maximumA 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?* Yes NoA 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 proceeding could fail in court 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 theseMust 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 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?* 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 YesCan the director publish the name of a creditor against whom an action has been taken?* Yes NoCan a collector be sued by a debtor if the collector contravenes or acquiesces in a contravention of the Act or its Regulations that causes the debtor to suffer damages or a loss as a result?* 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?* 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 YesWhat penalties would collectors who contravene any of the legislative provisions regulating debt collection practices expose themselves to?* Licence cancellations Legal proceedings for damages or loss Administrative monetary penalties Licence suspensions Convictions of an offence All of theseA collection agency purchased the arrears debt of a business that has closed. Many of the debts appear, on their face, to be statute-barred under the Limitations Act. Can the agency collect the debts anyway?* Yes NoA 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 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 NoCAPTCHA TweetShareSharePin0 Shares
