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 YesThe debt collection provisions of the Business Practices and Consumer Protection Act apply only to transactions involving a consumer and do not apply to business-to-business transactions or 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 TrueAfter sending a written notice to a debtor of the assignment of the debt for collection, the collector must wait:* 24 hours before verbally contacting the debtor 5 days before verbally contacting the debtor 14 days before verbally contacting the debtor There is no required waiting period 7 days before verbally contacting the debtorA debt collector may not communicate verbally with a debtor until the collector:* Knows that the debtor is employed full-time Receives agreement in writing that they can contact the debtor Sends written notice to the debtor Knows that the debtor is employed at least 15 hours per week Obtains a copy of the debtor's credit report and reviews itApart 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 TrueA collector may only speak with a debtor's neighbour or relative if the collector has made 3 unsuccessful attempts to contact the debtor.* False TrueIt is a legislated requirement that a debtor's employer respond to a collector's inquiries about an employee.* 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 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.* True FalseIt is acceptable to demand that a debtor submit written notice or payment via registered mail.* False TrueUnless a family member or friend of a debtor is a co-borrower or guarantor, they are not responsible for paying for the debt.* False TrueWritten 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 is unemployed or otherwise unable to pay the debt The debtor has proven to be trustworthy The collector does not already have the creditor's written authorityStating the collector's intent to bring or continue a legal proceeding for which no lawful authority exists would be considered:* Too much pressure for a first-time debtor Acceptable practice for a debtor who is refusing to pay A prohibited collection practice and possibly a deceptive trade practiceA 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.* False TrueA debtor who refuses to either pay a lawful debt or make a suitable payment arrangement enables the collector to contact the local police for assistance.* False TrueOnce a collector has confirmed that they are communicating with the debtor, the collector must immediately identify themselves as a collector.* False TrueHow 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 Sometime during the first phone call Immediately Within 5 minutesIf a collector engages in a prohibited collection practice, can the debtor sue for any damages or loss that result from the prohibited practice?* Yes NoWho can a debtor sue if the debtor has suffered loss or damage due to a prohibited collection practice?* The collection agent The collector BothA 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?* Yes NoA collector is assigned a purchased debt to collect. Must the collector know and inform the debtor of the name of the original creditor?* No YesIf 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 disputeOn a statutory holiday, a debtor or a debtor’s employer can only be called:* Never During regular business hours If the debtor or the debtor’s employer requests and pre-arranges a time to be contactedA 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 Let other people know that the debtor is not paying their bills Confirm the debtor is employed there and to obtain the debtors title and work place addressIf they are located outside of BC, debt collection employees are not required to be licensed in BC if they are only calling into BC.* False TrueBC'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.* False TrueA collector must stop communicating with a debtor if the debtor notifies the collector to communicate with the debtor's lawyer and provides an address for the lawyer.* False TrueCollection calls can be made on Sundays between 1pm and 5pm, local time for the debtor.* False TrueMust a collector be able to account for any increase in the amount of a debt since it was first due and payable?* Yes NoA 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 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 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 amountWhat could happen if a collector does not notify a debtor that the collector intends to sue the debtor for recovery of a debt?* The collector is prohibited from bringing the proceeding 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 courtBefore 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 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 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?* No YesCan 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 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, All of the 3 actions Thank the debtor for the payment Ensure the money is deposited directly into the collection agencies' trust account within 5 days of when the money 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 FalseCan the director publish the name of a creditor against whom an action has been taken?* 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?* No YesA 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 NoWhat penalties would collectors who contravene any of the legislative provisions regulating debt collection practices expose themselves to?* Convictions of an offence Licence suspensions Administrative monetary penalties Licence cancellations All of these Legal proceedings for damages or lossA 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 YesWhat collection cost(s) can a collector lawfully attempt to recover from a debtor?* Costs incurred collecting debts in arrears of more than 2 years Court-ordered costs None of these costs Default costs set out in the lending agreement All of these costs Costs of more than $50A 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?* Yes NoCAPTCHA TweetShareSharePin0 Shares
