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 AgencyThe 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 TrueWho can allege harassment due to the manner or frequency of communication with a collector?* None of these A debtor's family member All of these 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.* True FalseA debt collector must notify a debtor in writing prior to:* Freezing a debtor's bank account Going to their place of employment Making the first collection callAfter sending a written notice to a debtor of the assignment of the debt for collection, the collector must wait:* 14 days before verbally contacting the debtor There is no required waiting period 5 days before verbally contacting the debtor 7 days before verbally contacting the debtor 24 hours before verbally contacting the debtorAn 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 FalseA debtor may agree to be contacted by the collector at their place of employment.* 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.* False TrueIt is a legislated requirement that a debtor's employer respond to a collector's inquiries about an employee.* True FalseA collector cannot collect an amount that is more than the amount of the debt owed to the creditor.* False TrueParents of a debtor may be contacted about a debt if:* The debtor lives with them Both of these They guaranteed the debt which is in default Neither of theseWritten notice must be provided by a collector to a debtor before starting a legal proceeding to recover that debt.* 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 is unemployed or otherwise unable to pay the debt The debtor has proven to be trustworthyA creditor may give a collector the authority to bring or continue a legal proceeding by:* Granting the authority in writing in each case Both of these options Granting the authority in the collection agreement between the creditor and collection agentA collector may not use an alias unless the alias appears on their BC collector licence issued by Consumer Protection BC.* 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 is able to automatically garnish a debtor's wages under the Business Practices & Consumer Protection Act.* True FalseHow long does a collector have to identify themselves as a collection agent when first speaking with a debtor?* Sometime during the first phone call Within 5 minutes Immediately Only after the collector believes the debtor may not pay 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.* False TrueWho can a debtor sue if the debtor has suffered loss or damage due to a prohibited collection practice?* The collection agent The collector BothFor 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 when the debt arrears is first reported to a credit reporting agency The date the account first went into arrears under the terms of the credit agreement The date the account is written off as uncollectable by the creditor The date the debt was assigned to the collection agencyPreviously, 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?* 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 YesIf 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:* they co-signed on the debt or guaranteed repayment of the debt the debtor is acting irresponsibly the debtor is away on vacation and cannot be reached to collect the debtOn a debtor’s credit report, a past-due account will:* Be visible for a set time period which re-starts each time the debt is transferred to a new collection agency Remain forever, until the debt is paid Be visible for a set time period that starts when the account becomes overdueIf they are located outside of BC, debt collection employees are not required to be licensed in BC if they are only calling into BC.* True FalseBC's debt collection legislation applies to transactions, matters or things, regardless of whether they involve a consumer and or business.* True FalseThe 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.* False TrueWho does NOT need a debt collection licence issued by Consumer Protection BC?* Collection agencies located outside of BC collecting into BC Collection agencies located in BC Collection agencies located outside of BC collecting outside BC Debt buyers collecting their purchased debtsPrior 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 name of the original creditor The time allowed the debtor to pay the debt The employment status of the debtor The debtors cell phone number, if anyA 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:* 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 collector has actual reasons to believe it is not correct All of these The address is from 3 years ago or longerA 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 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 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 and give the debtor details about the debt ownership and amount owed Identify themself and their authority to collect the debtA 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?* Yes NoWho must give notice to a debtor that a legal proceeding will be brought to recover a debt?* A debt buyer collecting on a purchased debt All 3 groups None of the 3 groups A creditor collecting its own debt A collector assigned a debt for collection owing to another personBefore 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)?* None of these things Given notice to the debtor that the collector intends to bring proceedings to collect the debt Sent a similar request first to the registered corporate office of the employer Obtained the employer's legal name and mailing address Reviewed the file with a lawyerCan 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 YesA 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 NoThe 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?* No YesThe 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.* False TrueCan 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?* No YesWhat penalties would collectors who contravene any of the legislative provisions regulating debt collection practices expose themselves to?* All of these Legal proceedings for damages or loss Licence suspensions Convictions of an offence Administrative monetary penalties Licence cancellationsThe 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:* OK if the rate is the industry norm for that type of debt Reasonable and permitted Too high, maximum should be the bank prime rate Unlawful and therefore not permittedA debt is on its third assignment with a new collection agency. The previous agencies did not properly document accounting of the debt. The new agency cannot account for the increase in the debt since it first became due. What can it do?* Contact the creditor and obtain sufficient information to prepare the accounting Not attempt to collect the debt Contact the previous agencies for enough information to prepare the accounting Any of these actionsA collector does not have a debtor's home contact information. Is a collector allowed to contact a debtor's neighbour to request the debtor's home address, phone number or email?* No YesA 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 NoCAPTCHATweetShareSharePin0 Shares
