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 AgencyIf a debtor agrees to pay for some or all of the costs incurred by a collector collecting or attempting to collect her or his debt, is the debtor bound by this agreement?* Yes NoThe 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 TrueThe 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.* True FalseA debt collector must be licensed in BC if they are contacting BC debtors from an office located in:* Canada Anywhere in the world BCThreatening to publish a debtor's failure to pay a debt, in a manner generally accessible to the public, is acceptable under the Act.* True FalseAn acceptable reason to contact debtors at their place of employment is to:* Obtain a debtor's residential contact information Confirm a debtor's income Determine the frequency of the debtor's paydays None of theseA debtor must communicate with a debt collector if they are contacted at their place of employment.* True FalseIn 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 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 unemployedApart 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.* False TrueUnless there is a history of dishonoured payments, a debtor must be allowed to make a debt payment using a cheque.* True FalseUnless a family member or friend of a debtor is a co-borrower or guarantor, they are not responsible for paying for the debt.* True FalseA 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 not state or threaten the possibility of a legal proceeding against a debtor if:* The collector does not already have the creditor's written authority The debtor has proven to be trustworthy The debtor is unemployed or otherwise unable to pay the debtStating the collector's intent to bring or continue a legal proceeding for which no lawful authority exists would be considered:* Acceptable practice for a debtor who is refusing to pay A prohibited collection practice and possibly a deceptive trade practice Too much pressure for a first-time debtorAt the beginning of a communication with a debtor, the collector must clearly identify themself to a debtor as a third-party collection agent.* True FalsePromising a debtor that derogatory credit information will be deleted from the debtor's credit report following full payment of a debt is acceptable.* True FalseIt is acceptable for a collector to identify themselves as someone other than a collector when trying to locate a 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 The collection agent does not require a licence to collect the debt since it now owns the debt A licence is still required to collect the debt since the agent is not the original creditor None of theseA collector may charge an uncooperative debtor for the reasonable collection costs incurred by the collector while collecting the debt.* True FalseIt 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.* True FalseFor credit reporting purposes, which of the following events is used as the starting date for the 6-year maximum reporting period:* 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 agreement The date the debt was assigned to the collection agency The date when the debt arrears is first reported to a credit reporting agencyA 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 NeverA collector is assigned a purchased debt to collect. Must the collector know and inform the debtor of the name of the original creditor?* No YesYou have learned that a debtor will be home today to attend their brother's funeral. Since you cannot call them at work, can you call them at their home today?* No YesOn a statutory holiday, a debtor or a debtor’s employer can only be called:* During regular business hours Never If the debtor or the debtor’s employer requests and pre-arranges a time to be contactedParents 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 they co-signed on the debt or guaranteed repayment of the debt the debtor is acting irresponsiblyBC's debt collection legislation applies to transactions, matters or things, regardless of whether they involve a consumer and or business.* True FalseUnder the Business Practices and Consumer Protection Act, any agreement by the debtor to waive or release a debtor's rights under the Act and it's regulation is void.* False TrueDebtors are not obligated to communicate with debt collectors if they are contacted at their places of employment.* 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.* 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 employment status of the debtor The debtors cell phone number, if any The name of the original creditorA 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?* Yes NoA 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?* 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 YesDespite 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?* None Three One TwoBefore 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 Obtained the employer's legal name and mailing address Given notice to the debtor that the collector intends to bring proceedings to collect the debt Reviewed the file with a lawyer None of these thingsMust a creditor collecting its own debt give notice to a debtor that a proceeding may be brought against the debtor to recover the debt before bringing such an action?* No YesCan 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?* No YesCan 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?* 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?* Calculate their commission on the payment and advise their employer accordingly None 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 All of the 3 actionsThe 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 FalseCan the director publish the name of a creditor against whom an action has been taken?* 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 debtor in arrears is working out-of-country. Can their spouse, who has no liability for the debt, be used as a go-between to try to have the debt paid?* 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?* 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 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?* No YesCAPTCHA TweetShareSharePin0 Shares
