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 Practices and Consumer Protection Act Bankruptcy and Insolvency Act Business Corporation Act Debtors Assistance ActAn individual's credit report may include information that is adverse to their interests for what maximum period of time?* 7 years 4 years 6 years 2 yearsThe 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 notify a debtor in writing prior to:* Making the first collection call Going to their place of employment Freezing a debtor's bank accountA debt collector may not communicate verbally with a debtor until the collector:* Obtains a copy of the debtor's credit report and reviews it Receives agreement in writing that they can contact the debtor Knows that the debtor is employed at least 15 hours per week Sends written notice to the debtor Knows that the debtor is employed full-timeA debtor must communicate with a debt collector if they are contacted at their place of employment.* False TrueIt 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:* The debtor authorized the collector to do so None of these All of thse The debtor is unavailable The debtor is unemployedIt is a legislated requirement that a debtor's employer respond to a collector's inquiries about an employee.* 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.* True FalseIf there is no history of dishonoured payments, a collector must allow a debt to be paid by cheque or debit card.* False TrueParents of a debtor may be contacted about a debt if:* The debtor lives with them Both of these They guaranteed the debt which is in default Neither of theseA debtor's spouse is equally liable for a debt even if she or he is not named in the credit agreement.* False TrueA collector may be required to show evidence that they believed the person they contacted to pay a debt was actually the debtor.* False TrueA 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 FalseA 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 FalseA collector may refuse to give an uncooperative debtor their BC collection agent and employee licensing information.* True FalseOnce a collector has confirmed that they are communicating with the debtor, the collector must immediately identify themselves as a collector.* False TrueHow long does a collector have to identify themselves as a collection agent when first speaking with a debtor?* Immediately Sometime during the first phone call Only after the collector believes the debtor may not pay the debt Within 5 minutesA collector may charge an uncooperative debtor for the reasonable collection costs incurred by the collector while collecting the debt.* False TrueFor 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 is written off as uncollectable by the creditor 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 when the debt arrears is first reported to a credit reporting agencyOne of only 2 reasons a collector can contact a debtor's family or acquaintances is:* To determine from the person contacted where the debtor is employed To have the person contacted forward a message to the debtor To determine if the person contacted will help pay the debt None of the reasonsA 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 Never 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 madeA 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:* Must stop contacting the person and double-check the information they have 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 debtorLegal 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 debtor is making excuses for not paying the debt and the collector knows the debtor is lying The creditor has previously approved, in writing to the collector, legal action for this debtorIf 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.* False TrueThe 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 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.* True FalsePrior 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 time allowed the debtor to pay the debt The debtors cell phone number, if any The credit limit on the account The name of the original creditorA collector just received a debt to collect. They have both the debtor's old mailing address and a valid email address on file. Can the collector call the debtor to confirm the mailing address?* Yes NoA 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 YesAfter failing to communicate with a debtor at their home, a collector calls the debtor at work. The debtor, immediately upon learning the caller is a debt collector, hangs up the telephone. Can the collector call them back at work?* Yes NoAfter reaching a debtor on their home telephone, the collector must do what as soon as the contact is established?* Demand payment of the debt Be adaptive and do what the collector believes will result in 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 debt Threaten the debtor with legal action if the debtor hangs upAfter two way communication is established with a debtor, when must the collector identify themselves?* Before demanding payment of the debt involved Sometime before the end of the communication Only the identity of the collection agency is required Immediately Never unless the collector wants toDespite 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 amountHow many notices must a debtor be sent by a collector intending to sue on a debt assigned to the collector?* One None Three TwoCould 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?* No YesThe 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.* False TrueCan 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?* No 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:* Unlawful and therefore not permitted Reasonable and permitted Too high, maximum should be the bank prime rate OK if the rate is the industry norm for that type of debtA 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?* Yes NoWhat collection cost(s) can a collector lawfully attempt to recover from a debtor?* Court-ordered costs Default costs set out in the lending agreement None of these costs Costs incurred collecting debts in arrears of more than 2 years All of these costs Costs of more than $50A 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 previous agencies for enough information to prepare the accounting Any of these actions Contact the creditor and obtain sufficient information to prepare the accounting Not attempt to collect the debtA 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?* No YesCAPTCHATweetShareSharePin0 Shares
