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 or attempts to collect debt owed to another person All of these options Collects and attempts to collect debts it has purchased Collects or attempts to collect its own debts (as the original creditor)A debt collector must be licensed in BC if they are contacting BC debtors from an office located in:* Canada Anywhere in the world BCWho can allege harassment due to the manner or frequency of communication with a collector?* None of these All of these A debtor's family member A debtor's neighbour A debtor's employerThreatening to publish a debtor's failure to pay a debt, in a manner generally accessible to the public, is acceptable under the Act.* False TrueAfter 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 14 days before verbally contacting the debtor There is no required waiting period 7 days before verbally contacting the debtorIn 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 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 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.* 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.* True FalseUnless there is a history of dishonoured payments, a debtor must be allowed to make a debt payment using a cheque.* True FalseA collector cannot collect an amount that is more than the amount of the debt owed to the creditor.* True FalseFor a credit agreement that is silent about interest charges on overdue amounts, a debtor is only responsible to pay:* Court-ordered interest Compound interest Interest applied on the debt by the creditor Simple interest Interested applied on the debt by the collectorUnless a family member or friend of a debtor is a co-borrower or guarantor, they are not responsible for paying for the 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 debtorA collector may not use an alias unless the alias appears on their BC collector licence issued by Consumer Protection BC.* 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.* 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 TrueA collector may refuse to give an uncooperative debtor their BC collection agent and employee licensing information.* 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 TrueTo 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 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 NoA 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?* 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 made Once each month that a payment is missedA collector is assigned a purchased debt to collect. Must the collector know and inform the debtor of the name of the original creditor?* No YesPreviously, 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:* 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 debtor Must stop contacting the person and double-check the information they haveA collector may call a debtor’s employer to:* Request an agreement to garnish a debtor’s wages Show a debtor that they can’t hide from their responsibility to pay the debt 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 billsBC's debt collection legislation applies to transactions, matters or things, regardless of whether they involve a consumer and or business.* True FalseThreatening to publish a debtor's failure to pay a debt in a manner generally accessible to the public constitutes harassment under the Act.* True FalseDebtors are not obligated to communicate with debt collectors if they are contacted at their places of employment.* False TrueCollection calls can be made on Sundays between 1pm and 5pm, local time for the debtor.* 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 YesPrior 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 credit limit on the account The employment status of the debtor The name of the original creditor The debtors cell phone number, if any The time allowed the debtor to pay the debtA 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 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 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?* 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 YesA 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 FalseCan a collector acting for a certain creditor also act as a debt repayment agent for a debtor if the debtor owes money to that certain creditor?* Yes NoCan a collector threaten or actually inform a defaulting debtor that the collector will inform the debtor's other creditors of the default if the debt is not paid immediately?* 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?* Yes NoA debtor is refusing to answer collection calls from a collector. The collector has the debtor's daughter's telephone number. Can the collector call the daughter to discuss the debt?* 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 collector called the manager of a debtor at their work and demanded that the debtor take the call because a debt the employee has is in arrears and payment is required immediately to avoid a default. Is this permitted?* Yes No Depends on situationA 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 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 None of these costs Costs of more than $50 Default costs set out in the lending agreement All of these costs Costs incurred collecting debts in arrears of more than 2 yearsA collector wants to send the notice to a debtor to begin verbal collection activity. They do not have the debtor's home address or email. To get this information they call the debtor at home. Is this lawful since the initial notice has not been provided to the debtor?* No YesA 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
