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 AgencyAn individual's credit report may include information that is adverse to their interests for what maximum period of time?* 4 years 7 years 6 years 2 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 FalseA collector is a person who:* Collects and attempts to collect debts it has purchased All of these options Collects or attempts to collect debt owed to another person Collects or attempts to collect its own debts (as the original creditor)The 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.* False TrueA 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 callAn 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 collector may only speak with a debtor's neighbour or relative if the collector has made 3 unsuccessful attempts to contact the debtor.* True FalseIt is a legislated requirement that a debtor's employer respond to a collector's inquiries about an employee.* True FalseA reasonable amount of pressure can be applied to family and friends of debtors in order to have the debtor contact the collector.* True FalseIf there is no history of dishonoured payments, a collector must allow a debt to be paid by cheque or debit card.* False TrueIt is acceptable to demand that a debtor submit written notice or payment via registered mail.* 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 trustworthyStating 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 Too much pressure for a first-time debtor A prohibited collection practice and possibly a deceptive trade practiceA 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.* False TrueA 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.* True FalseNon payment of a contractual debt is a criminal offence and may result in 6 months imprisonment or a $10,000 fine.* True FalseA collector is able to automatically garnish a debtor's wages under the Business Practices & Consumer Protection Act.* False TrueA 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 collection agent The collector 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 Only once regardless of the number of late payments or when they are made Never Once each month that a payment is missedA 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 YesA collector is assigned a purchased debt to collect. Must the collector know and inform the debtor of the name of the original creditor?* Yes NoRemembrance Day falls on a Sunday. When can a collector telephone a debtor?* Only after 11 a.m. until 5 p.m. None of these options Only between 1 p.m. and 5 p.m. Only between 11 a.m. and 9 p.m.On 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 contactedLegal action can only be threatened or stated to a debtor if:* The debtor has no obvious reason not to pay the debt The debtor promised the collector they would pay the debt but have not done so The creditor has previously approved, in writing to the collector, legal action for this debtor The debtor is making excuses for not paying the debt and the collector knows the debtor is lyingIf 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 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.* True FalseCollection 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 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 debtors cell phone number, if any The credit limit on the account The employment status of the debtor The time allowed the debtor to pay the debt The name of the original creditorA 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 All of these The address is from 3 years ago or longer 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 collectorsS.116(1) allows a collector to contact a debtor at work if unsuccessful contacting the debtor at their home; address, phone number or email. How many times can the collector attempt to communicate with an uncooperative debtor at work?* As many times as required 0 times Only 2 times Only 1 time 3 times maximumA 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 YesWho must give notice to a debtor that a legal proceeding will be brought to recover a debt?* None of the 3 groups A debt buyer collecting on a purchased debt All 3 groups A collector assigned a debt for collection owing to another person A creditor collecting its own debtA notice sent to a debtor under S. 121 of the Act that states the collector intends to begin action to recover a debt can be general in nature and not reference the debt(s) owed that would be subject of the proceeding.* False TrueBefore 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)?* 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 None of these things Reviewed the file with a lawyer Obtained the employer's legal name and mailing addressCould 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?* 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 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 debtor has provided proof to a collector that they assigned themselves into bankruptcy several years ago, including all their debts, and was absolutely discharged from the bankruptcy. Can collector still attempt to collect on a discharged debt?* 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 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 YesThe 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 Too high, maximum should be the bank prime rate Unlawful and therefore not permitted OK if the rate is the industry norm for that type of debtA 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 previous agencies for enough information to prepare the accounting Any of these actions Not attempt to collect the debt Contact the creditor and obtain sufficient information to prepare the accountingA 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?* No YesCAPTCHATweetShareSharePin0 Shares
