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 AgencyA collector is a person who:* Collects and attempts to collect debts it has purchased All of these options Collects or attempts to collect debt owed to another person Collects or attempts to collect its own debts (as the original creditor)The 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 TrueThreatening to publish a debtor's failure to pay a debt, in a manner generally accessible to the public, is acceptable under the Act.* False TrueA 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 callA 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 TrueA 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 theseApart from being authorized by the debtor to do so, the only reason a collector may communicate with a debtor's employer is to confirm the debtor's employment, business title and business address.* True FalseA reasonable amount of pressure can be applied to family and friends of debtors in order to have the debtor contact the collector.* True FalseOn a statutory holiday, a BC debtor may receive a collection call only if they have specifically requested to be contacted on that day.* False TrueIt is acceptable to demand that a debtor submit written notice or payment via registered mail.* True FalseA collector cannot collect an amount that is more than the amount of the debt owed to the creditor.* True FalseWritten notice must be provided by a collector to a debtor before starting a legal proceeding to recover that debt.* True FalseA 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:* Both of these options Granting the authority in writing in each case Granting the authority in the collection agreement between the creditor and collection agentAt the beginning of a communication with a debtor, the collector must clearly identify themself to a debtor as a third-party collection agent.* True FalseAdvising 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 TrueIt is acceptable for a collector to identify themselves as someone other than a collector when trying to locate a debtor.* True FalseWhen 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 TrueWhen a collection agent purchases a debt:* The time period for reporting the debt on the debtor's credit report is reset to the beginning None of these A licence is still required to collect the debt since the agent is not the original creditor The collection agent does not require a licence to collect the debt since it now owns the debtTo 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 TrueIt 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 TrueWho can a debtor sue if the debtor has suffered loss or damage due to a prohibited collection practice?* Both The collector The collection agentA 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 for each late payment no matter when the late payment is made Only once regardless of the number of late payments or when they are made Once each month that a payment is missed NeverIf a debtor informs you that they are disputing the debt you are calling about, you:* Can demand to see the evidence that they have Can still contact them about the debt until they actually go to court Must stop trying to collect the debt if the debtor informs you and the creditor in writing of the disputeWhen a collection agency begins to collect a debt:* The time limitation for collecting on the debt starts over The time limitation remains unchanged and is still calculated from the date the debt first became past-due The debt is already so overdue that extra pressure is now OK to use on a debtor to make the debtor pay 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 Never During regular business hoursParents or family of a debtor are responsible for the debt if:* the debtor is away on vacation and cannot be reached to collect the debt the debtor is acting irresponsibly they co-signed on the debt or guaranteed repayment of the debtWhen a debtor has requested communication in writing only but has not responded to any of the letters sent to them by the collector,* The debtor is ignoring the fact that they have not paid their bill and the collector should start calling again The debtor is acting illegally The collector cannot begin to call the debtor again The debtor can be sued for not answering collection lettersThe 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 FalseCollection calls can be made on Sundays between 1pm and 5pm, local time for the debtor.* False TruePrior 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 credit limit on the account The name of the original creditor The employment status of the debtor The debtors cell phone number, if anyA 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 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?* 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?* Yes NoDespite 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 amountWho must give notice to a debtor that a legal proceeding will be brought to recover a debt?* A creditor collecting its own debt None of the 3 groups All 3 groups A debt buyer collecting on a purchased debt A collector assigned a debt for collection owing to another personA 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.* True FalseBefore 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)?* Sent a similar request first to the registered corporate office of the employer None of these things Given notice to the debtor that the collector intends to bring proceedings to collect the debt Reviewed the file with a lawyer Obtained the employer's legal name and mailing addressCould 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 NoA 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 YesUnder 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, All of the 3 actions Ensure the money is deposited directly into the collection agencies' trust account within 5 days of when the money was received Thank the debtor for the payment Calculate their commission on the payment and advise their employer accordinglyCan 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 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 YesA 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?* No YesA 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?* Contact the creditor and obtain sufficient information to prepare the accounting Any of these actions Contact the previous agencies for enough information to prepare the accounting Not attempt to collect the debtA 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?* No YesCAPTCHA TweetShareSharePin0 Shares
