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?* Yes NoIf 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?* No YesA 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 notify a debtor in writing prior to:* Freezing a debtor's bank account Making the first collection call Going to their place of employmentA debt collector may not communicate verbally with a debtor until the collector:* Receives agreement in writing that they can contact the debtor Obtains a copy of the debtor's credit report and reviews it Knows that the debtor is employed at least 15 hours per week Knows that the debtor is employed full-time Sends written notice to the debtorA debtor may agree to be contacted by the collector at their place of employment.* True FalseIt 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 TrueIn 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 is unavailable All of thse The debtor authorized the collector to do so The debtor is unemployed None of theseOn 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 FalseFor a credit agreement that is silent about interest charges on overdue amounts, a debtor is only responsible to pay:* Simple interest Interest applied on the debt by the creditor Court-ordered interest Compound 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.* 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 be required to show evidence that they believed the person they contacted to pay a debt was actually the debtor.* False TrueNon 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.* 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 A licence is still required to collect the debt since the agent is not the original creditor None of these The collection agent does not require a licence to collect the debt since it now owns the debtThe complete assignment or sale of a debt requires any resulting collection activity to be performed only by a licensed collection agent and collector.* True FalseA collector may charge an uncooperative debtor for the reasonable collection costs incurred by the collector while collecting the debt.* True FalseWho can a debtor sue if the debtor has suffered loss or damage due to a prohibited collection practice?* The collector The collection agent BothA 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 Never Once each month that a payment is missed Only once regardless of the number of late payments or when they are madeA debtor contacted about an overdue debt immediately begins swearing at the collector. In retaliation, the collector swears back at the debtor. Is this acceptable under the legislation?* 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?* Yes NoIf a debtor informs you that they are disputing the debt you are calling about, you:* 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 dispute Can demand to see the evidence that they haveParents 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 irresponsiblyOn a debtor’s credit report, a past-due account will:* Remain forever, until the debt is paid Be visible for a set time period that starts when the account becomes overdue Be visible for a set time period which re-starts each time the debt is transferred to a new collection agencyUnder 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 FalseThreatening to publish a debtor's failure to pay a debt in a manner generally accessible to the public constitutes harassment under the Act.* False TrueCan a collector attempt to collect a debt if the collector does not know who the original creditor was?* Yes NoPrior 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 credit limit on the account The debtors cell phone number, if any The time allowed the debtor to pay the debt 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?* 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:* All of these The address is from 3 years ago or longer The debtor has a reputation of lying to other collectors 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 neededA 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 NoA 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 YesAfter two way communication is established with a debtor, when must the collector identify themselves?* Sometime before the end of the communication Only the identity of the collection agency is required Immediately Before demanding payment of the debt involved Never unless the collector wants toBefore 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 Reviewed the file with a lawyer Given notice to the debtor that the collector intends to bring proceedings to collect the debt None of these things Obtained the employer's legal name and mailing addressMust 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?* Yes NoCould 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 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?* Thank the debtor for the payment All of the 3 actions 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 receivedHow long does an employee of a debt collection agency have to deposit payments received from debtors into the agency's trust account?* 5 days 10 days 2 weeks Until the end of the month in which it was received Until the end of the following month in which it 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 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?* No YesWhat penalties would collectors who contravene any of the legislative provisions regulating debt collection practices expose themselves to?* Administrative monetary penalties Licence cancellations Legal proceedings for damages or loss Convictions of an offence Licence suspensions All of theseThe lending agreement for a debt that is in arrears is silent about interest being charged on the outstanding loan balance. The collector who was assigned the account suggests that 10.9% APR interest be added to the debt. Is this:* Reasonable and permitted OK if the rate is the industry norm for that type of debt Too high, maximum should be the bank prime rate Unlawful and therefore not permittedA 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?* Costs incurred collecting debts in arrears of more than 2 years None of these costs Court-ordered costs Costs of more than $50 Default costs set out in the lending agreement All of these costsA 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?* Yes NoCAPTCHA TweetShareSharePin0 Shares
