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 AgencyThe debt collection provisions of the Business Practices and Consumer Protection Act apply only to transactions involving a consumer and do not apply to business-to-business transactions or debts .* False TrueAn individual's credit report may include information that is adverse to their interests for what maximum period of time?* 6 years 4 years 7 years 2 yearsThe 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.* False TrueA collector is a person who:* Collects or attempts to collect its own debts (as the original creditor) Collects and attempts to collect debts it has purchased Collects or attempts to collect debt owed to another person All of these optionsAfter sending a written notice to a debtor of the assignment of the debt for collection, the collector must wait:* 5 days before verbally contacting the debtor 24 hours before verbally contacting the debtor There is no required waiting period 14 days before verbally contacting the debtor 7 days before verbally contacting the debtorA debtor can compel a collection agency to contact them in writing only if:* Neither 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. Both 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 reasonable amount of pressure can be applied to family and friends of debtors in order to have the debtor contact the collector.* 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.* 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 TrueIf there is no history of dishonoured payments, a collector must allow a debt to be paid by cheque or debit card.* False TrueA collector cannot collect an amount that is more than the amount of the debt owed to the creditor.* False TrueA debtor's spouse is equally liable for a debt even if she or he is not named in the credit agreement.* False TrueWritten notice must be provided by a collector to a debtor before starting a legal proceeding to recover that debt.* False TrueStating the collector's intent to bring or continue a legal proceeding for which no lawful authority exists would be considered:* A prohibited collection practice and possibly a deceptive trade practice Acceptable practice for a debtor who is refusing to pay Too much pressure for a first-time debtorAdvising 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.* False TrueA collector may refuse to give an uncooperative debtor their BC collection agent and employee licensing information.* True FalseA collector is able to automatically garnish a debtor's wages under the Business Practices & Consumer Protection Act.* 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 Within 5 minutes Sometime during the first phone call Only after the collector believes the debtor may not pay the debtIf 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 when the debt arrears is first reported to a credit reporting agency The date of the last payment on the debt 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 agreementOne of only 2 reasons a collector can contact a debtor's family or acquaintances is:* To determine if the person contacted will help pay the debt None of the reasons To determine from the person contacted where the debtor is employed To have the person contacted forward a message to the debtorA 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 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 debtorWhen a collection agency begins to collect a debt:* The time limitation for collecting on the debt starts over The debt is already so overdue that extra pressure is now OK to use on a debtor to make the debtor pay the debt The time limitation remains unchanged and is still calculated from the date the debt first became past-dueParents or family of a debtor are responsible for the debt if:* the debtor is acting irresponsibly the debtor is away on vacation and cannot be reached to collect the debt they co-signed on the debt or guaranteed repayment of the debtA collector may call a debtor’s employer to:* Confirm the debtor is employed there and to obtain the debtors title and work place address Request an agreement to garnish a debtor’s wages 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 debtIf 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 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 YesMust a collector be able to account for any increase in the amount of a debt since it was first due and payable?* Yes NoA 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 who has a home address of a debtor may only call the debtor before sending out the Section 115(1) initial notice if:* 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 longer The collection agency usually only sends the initial notice by email so the email is needed All of theseA 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?* No YesA 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 YesHow many notices must a debtor be sent by a collector intending to sue on a debt assigned to the collector?* One Three Two NoneWhat 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 debtor could use the failure to provide the required notice as a defense to the action All of these The collector is prohibited from bringing the proceedingA collector who fails to provide a debtor with written notice that the collector intends to bring proceedings to collect a debt can be charged with an offence under the Act.* False TrueA 3rd party collector is identifying themselves to the debtor as the employee of a creditor and not as a debt collection agent. Is this allowed?* 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 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?* All of the 3 actions 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 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 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 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?* No YesA 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 Not attempt to collect the debt Any of these actions Contact the previous agencies for enough information to prepare the accountingA 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 NoCan a debtor "call block" a collector so avoid future telephone calls from the collector?* Not governed under the BPCP Act or Debt Collertion Industry Regulation No YesCAPTCHATweetShareSharePin0 Shares
