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 ActA 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 accountBefore 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 All of these None of theseAfter sending a written notice to a debtor of the assignment of the debt for collection, the collector must wait:* 14 days before verbally contacting the debtor There is no required waiting period 7 days before verbally contacting the debtor 24 hours before verbally contacting the debtor 5 days before verbally contacting the debtorA debt collector may not communicate verbally with a debtor until the collector:* Sends written notice to the debtor Knows that the debtor is employed full-time Knows that the debtor is employed at least 15 hours per week Receives agreement in writing that they can contact the debtor Obtains a copy of the debtor's credit report and reviews itA 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 collector may only speak with a debtor's neighbour or relative if the collector has made 3 unsuccessful attempts to contact the debtor.* True FalseExcept 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.* True FalseUnless requested by the employer, a collector may not contact a debtor's employer on a BC statutory holiday.* False TrueUnless there is a history of dishonoured payments, a debtor must be allowed to make a debt payment using a cheque.* False TrueUnless a family member or friend of a debtor is a co-borrower or guarantor, they are not responsible for paying for the debt.* False TrueA collector may be required to show evidence that they believed the person they contacted to pay a debt was actually the debtor.* True FalseStating the collector's intent to bring or continue a legal proceeding for which no lawful authority exists would be considered:* Too much pressure for a first-time debtor A prohibited collection practice and possibly a deceptive trade practice Acceptable practice for a debtor who is refusing to payA 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 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.* False TrueWhen 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 TrueThe complete assignment or sale of a debt requires any resulting collection activity to be performed only by a licensed collection agent and collector.* 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?* Yes NoWho can a debtor sue if the debtor has suffered loss or damage due to a prohibited collection practice?* The collection agent Both The collectorA 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 debtor contacted about an overdue debt immediately begins swearing at the collector. In retaliation, the collector swears back at the debtor. Is this acceptable under the legislation?* No YesA collector is assigned a purchased debt to collect. Must the collector know and inform the debtor of the name of the original creditor?* No YesIf a collector contacts a person about a debt they owe and the person says they are not the debtor, the collector:* Can keep calling until they are convinced the person is not the debtor Must stop contacting the person and double-check the information they have Can try to convince the person that they do indeed owe the debtOn a statutory holiday, a debtor or a debtor’s employer can only be called:* If the debtor or the debtor’s employer requests and pre-arranges a time to be contacted During regular business hours NeverOn a debtor’s credit report, a past-due account will:* Remain forever, until the debt is paid Be visible for a set time period which re-starts each time the debt is transferred to a new collection agency Be visible for a set time period that starts when the account becomes overdueA collector may call a debtor’s employer to:* Confirm the debtor is employed there and to obtain the debtors title and work place address 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 wagesThreatening to publish a debtor's failure to pay a debt in a manner generally accessible to the public constitutes harassment under the Act.* False TrueCollection calls can be made on BC Statutory holidays anytime during the day until 9pm each evening.* True FalseWho does NOT need a debt collection licence issued by Consumer Protection BC?* Collection agencies located outside of BC collecting outside BC Debt buyers collecting their purchased debts Collection agencies located in BC Collection agencies located outside of BC collecting into BCA 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 YesA 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?* No YesA 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 NoAfter 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?* No YesS.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?* As many times as required Only 2 times 3 times maximum 0 times Only 1 timeAfter two way communication is established with a debtor, when must the collector identify themselves?* Before demanding payment of the debt involved Immediately Only the identity of the collection agency is required Never unless the collector wants to Sometime before the end of the communicationDespite 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?* 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 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?* None of the 3 actions, Thank the debtor for the payment Calculate their commission on the payment and advise their employer accordingly Ensure the money is deposited directly into the collection agencies' trust account within 5 days of when the money was received All of the 3 actionsA debtor has provided proof to a collector that they assigned themselves into bankruptcy several years ago, including all their debts, and was absolutely discharged from the bankruptcy. Can collector still attempt to collect on a discharged debt?* 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?* Yes NoA 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 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?* Not attempt to collect the debt Any of these actions Contact the creditor and obtain sufficient information to prepare the accounting Contact the previous agencies for enough information to prepare the accountingA 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?* Yes NoDebtors 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
