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 AgencyDo debt collection agency employees performing collection functions from or into BC need a BC collector licence?* No YesWhat is the name of the legislation that governs debt collection activity in British Columbia?* Debtors Assistance Act Business Practices and Consumer Protection Act Business Corporation Act Bankruptcy and Insolvency ActAn individual's credit report may include information that is adverse to their interests for what maximum period of time?* 7 years 4 years 2 years 6 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.* True FalseThreatening 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 debtor may agree to be contacted by the collector at their place of employment.* False TrueA debtor can compel a collection agency to contact them in writing only if:* Both of these The debtor submits the demand by email or letter and provides a mailing or emailing address where the debtor can be reached. Neither of these The debtor provides a mailing address for the collector to useIt 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.* False TrueA reasonable amount of pressure can be applied to family and friends of debtors in order to have the debtor contact the collector.* 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.* False TrueA 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:* Compound interest Interest applied on the debt by the creditor Interested applied on the debt by the collector Simple interest Court-ordered interestWritten notice must be provided by a collector to a debtor before starting a legal proceeding to recover that debt.* True FalseA 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 agentA 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 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.* True FalseNon payment of a contractual debt is a criminal offence and may result in 6 months imprisonment or a $10,000 fine.* False TrueA collector may refuse to give an uncooperative debtor their BC collection agent and employee licensing information.* True FalseHow long does a collector have to identify themselves as a collection agent when first speaking with a debtor?* Only after the collector believes the debtor may not pay the debt Within 5 minutes Sometime during the first phone call ImmediatelyThe complete assignment or sale of a debt requires any resulting collection activity to be performed only by a licensed collection agent and collector.* True FalseTo 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?* 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 account first went into arrears under the terms of the credit agreement The date when the debt arrears is first reported to a credit reporting agency The date the debt was assigned to the collection agency The date of the last payment on the debt The date the account is written off as uncollectable by the creditorA collector is assigned a purchased debt to collect. Must the collector know and inform the debtor of the name of the original creditor?* Yes NoYou 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?* Yes NoWhen a collection agency begins to collect a debt:* The time limitation remains unchanged and is still calculated from the date the debt first became past-due 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 debtOn 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 overdueBC'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 TrueThe 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 FalseCollection calls can be made on Sundays between 1pm and 5pm, local time for the debtor.* True FalseA 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 employment status of the debtor The time allowed the debtor to pay the debt The debtors cell phone number, if any The name of the original creditor The credit limit on the accountA collector demands a fee to provide a debtor with a breakdown amount of an old debt. The debtor claims he must be provided with the information before the debt can be collected and with no cost. Who is right?* The collector The debtorA 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 collection agency usually only sends the initial notice by email so the email is needed The debtor has a reputation of lying to other collectors The address is from 3 years ago or longer All of theseAfter 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 NoAfter reaching a debtor on their home telephone, the collector must do what as soon as the contact is established?* Threaten the debtor with legal action if the debtor hangs up Be adaptive and do what the collector believes will result in payment of the debt Demand payment of the debt Identify themself and their authority to collect the debt Identify themself and their authority to collect the debt and give the debtor details about the debt ownership and amount owedA 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 YesWhat could happen if a collector does not notify a debtor that the collector intends to sue the debtor for recovery of a debt?* All of these The debtor could use the failure to provide the required notice as a defense to the action The proceeding could fail in court The collector is prohibited from bringing the proceedingMust 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?* 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?* Yes NoCan the number of times a collector calls a debtor about a debt (call frequency) be considered as harassment of the debtor under the legislation?* No YesThe legislation allows a collector to attempt to contact a debtor at their place of employment under two very restricted circumstances. Does the law also require the debtor to communicate with the collector during either of these attempts?* Yes NoCan 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?* Yes NoA 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 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?* 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?* 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 NoWhat collection cost(s) can a collector lawfully attempt to recover from a debtor?* Default costs set out in the lending agreement None of these costs Costs of more than $50 Costs incurred collecting debts in arrears of more than 2 years Court-ordered costs All of these costsCAPTCHA TweetShareSharePin0 Shares
