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 NoA collector is a person who:* All of these options Collects and attempts to collect debts it has purchased Collects or attempts to collect debt owed to another person Collects or attempts to collect its own debts (as the original creditor)Threatening 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:* Making the first collection call Going to their place of employment Freezing a debtor's bank accountAfter sending a written notice to a debtor of the assignment of the debt for collection, the collector must wait:* 5 days before verbally contacting the debtor 24 hours before verbally contacting the debtor 7 days before verbally contacting the debtor 14 days before verbally contacting the debtor There is no required waiting periodA collector can communicate with a family member or relative of a debtor if:* The debtor authorized the collector to do so The debtor is unavailable All of thse None of these The debtor is unemployedA reasonable amount of pressure can be applied to family and friends of debtors in order to have the debtor contact the collector.* True FalseCollection calls can be made to BC residents on Sundays between 9am and 5pm.* 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.* False TrueExcept 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 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 Court-ordered interest Interested applied on the debt by the collector Interest applied on the debt by the creditor Simple interestA 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 collector does not already have the creditor's written authority 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:* 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 practiceAt the beginning of a communication with a debtor, the collector must clearly identify themself to a debtor as a third-party collection agent.* True FalsePromising a debtor that derogatory credit information will be deleted from the debtor's credit report following full payment of a debt is acceptable.* 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.* True FalseOnce a collector has confirmed that they are communicating with the debtor, the collector must immediately identify themselves as a collector.* True FalseThe complete assignment or sale of a debt requires any resulting collection activity to be performed only by a licensed collection agent and collector.* False TrueIt is considered an unreasonable collection practice for a collector to advise a debtor that the debtor will be responsible for the creditor's lawyer fees for an action that would be heard in Provincial Court.* True FalseA collection agent may add interest to a debt when the debt is in arrears even if the credit agreement does not provide for interest:* Only for the time period the debt is in arrears Only on the amount of the debt that is in arrears Both of those Neither of theseA 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?* Never 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 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 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 collector contacts a person about a debt they owe and the person says they are not the debtor, the collector:* Can try to convince the person that they do indeed owe the debt Can keep calling until they are convinced the person is not the debtor Must stop contacting the person and double-check the information they haveIf a debtor expresses concern about the number of calls they are receiving from a collector, the collector:* Must ensure the frequency of calls is not excessive or unreasonable in the circumstances May continue to make calls at the same frequency because there is nothing wrong with the number of calls they’re making to the debtor May increase the frequency of calls because the debtor is not cooperatingOn 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 contactedIf 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 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 TrueCollection calls can be made on BC Statutory holidays anytime during the day until 9pm each evening.* True FalseWho does NOT need a debt collection licence issued by Consumer Protection BC?* Debt buyers collecting their purchased debts Collection agencies located in BC Collection agencies located outside of BC collecting outside BC Collection agencies located outside of BC collecting into BCCan a collector attempt to collect a debt if the collector does not know who the original creditor was?* 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 collector has actual reasons to believe it is not correct The debtor has a reputation of lying to other collectors The collection agency usually only sends the initial notice by email so the email is needed The address is from 3 years ago or longerA 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 NoAfter 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 Identify themself and their authority to collect the debt and give the debtor details about the debt ownership and amount owed Demand payment of the debt Be adaptive and do what the collector believes will result in payment of the debt Identify themself and their authority to collect the debtWho must give notice to a debtor that a legal proceeding will be brought to recover a debt?* None of the 3 groups All 3 groups A debt buyer collecting on a purchased debt A creditor collecting its own debt A collector assigned a debt for collection owing to another personHow many notices must a debtor be sent by a collector intending to sue on a debt assigned to the collector?* One None Three TwoMust 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 YesCould 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 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 YesCan 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?* No YesA collector called the manager of a debtor at their work and demanded that the debtor take the call because a debt the employee has is in arrears and payment is required immediately to avoid a default. Is this permitted?* Depends on situation No YesA 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?* 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:* 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 permitted Reasonable and 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 NoA collector wants to send the notice to a debtor to begin verbal collection activity. They do not have the debtor's home address or email. To get this information they call the debtor at home. Is this lawful since the initial notice has not been provided to the debtor?* No YesA 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 YesCAPTCHA TweetShareSharePin0 Shares
