HomeDebt collector exam If 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 .* True FalseIf 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?* Yes NoA collector is a person who:* Collects or attempts to collect its own debts (as the original creditor) Collects or attempts to collect debt owed to another person Collects and attempts to collect debts it has purchased All of these optionsWho can allege harassment due to the manner or frequency of communication with a collector?* None of these All of these A debtor's employer A debtor's family member A debtor's neighbourBefore being requested to pay, debtors must know:* All of these That the collector is located in BC What percentage of their payments go to the creditor None of these Who the collector is and under what authority they are demanding payment of the debtAn 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 can compel a collection agency to contact them in writing only if:* The debtor submits the demand by email or letter and provides a mailing or emailing address where the debtor can be reached. Both of these Neither of these The debtor provides a mailing address for the collector to useA reasonable amount of pressure can be applied to family and friends of debtors in order to have the debtor contact the collector.* False TrueOn a statutory holiday, a BC debtor may receive a collection call only if they have specifically requested to be contacted on that day.* False TrueUnless requested by the employer, a collector may not contact a debtor's employer on a BC statutory holiday.* False TrueA collector cannot collect an amount that is more than the amount of the debt owed to the creditor.* True FalseIf a person informs a collector that they are not the debtor, the collector must:* Make reasonable efforts to ensure that the person is the debtor before contacting the person again Stop contacting the individual None of these options Give up on collecting the debt All of these optionsWritten notice must be provided by a collector to a debtor before starting a legal proceeding to recover that debt.* True FalseA creditor may give a collector the authority to bring or continue a legal proceeding by:* Granting the authority in the collection agreement between the creditor and collection agent Granting the authority in writing in each case Both of these optionsStating 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 A prohibited collection practice and possibly a deceptive trade practice Too much pressure for a first-time debtorPromising 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 FalseA collector may refuse to give an uncooperative debtor their BC collection agent and employee licensing information.* True FalseOnce a collector has confirmed that they are communicating with the debtor, the collector must immediately identify themselves as a collector.* True FalseWhen speaking with a debtor's family member or neighbour, a collector may identify themselves as someone other than a collector to avoid embarrassing the debtor.* False TrueWho can a debtor sue if the debtor has suffered loss or damage due to a prohibited collection practice?* Both The collection agent The collectorA 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 Once each month that a payment is missed Only once regardless of the number of late payments or when they are made NeverA debtor told a collector that their mother may help pay a debt. Can the collector call the mother to pursue payment?* 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 Can demand to see the evidence that they have Must stop trying to collect the debt if the debtor informs you and the creditor in writing of the disputeIf a debtor expresses concern about the number of calls they are receiving from a collector, the collector:* May increase the frequency of calls because the debtor is not cooperating 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 debtorParents 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 debtWhen a debtor has requested communication in writing only but has not responded to any of the letters sent to them by the collector,* The debtor is ignoring the fact that they have not paid their bill and the collector should start calling again The collector cannot begin to call the debtor again The debtor can be sued for not answering collection letters The debtor is acting illegallyA collector may call a debtor’s employer to:* Show a debtor that they can’t hide from their responsibility to pay the debt Confirm the debtor is employed there and to obtain the debtors title and work place address Let other people know that the debtor is not paying their bills Request an agreement to garnish a debtor’s wagesDebtors are not obligated to communicate with debt collectors if they are contacted at their places of employment.* True FalseWho does NOT need a debt collection licence issued by Consumer Protection BC?* Debt buyers collecting their purchased debts Collection agencies located outside of BC collecting outside BC Collection agencies located in BC Collection agencies located outside of BC collecting into BCMust a collector be able to account for any increase in the amount of a debt since it was first due and payable?* Yes NoA collector demands a fee to provide a debtor with a breakdown amount of an old debt. The debtor claims he must be provided with the information before the debt can be collected and with no cost. Who is right?* The collector The debtorA collector just received a debt to collect. They have both the debtor's old mailing address and a valid email address on file. Can the collector call the debtor to confirm the mailing address?* No YesA 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?* 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?* All of these The proceeding could fail in court The collector is prohibited from bringing the proceeding The debtor could use the failure to provide the required notice as a defense to the actionMust 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?* Yes NoCan 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 YesA collector who fails to provide a debtor with written notice that the collector intends to bring proceedings to collect a debt can be charged with an offence under the Act.* True FalseIf a debtor is called by a collector with such a frequency or in such a manner that it upsets the debtor, can the debtor end all future verbal communications with the collector?* 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 TrueA 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 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 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?* 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 OK if the rate is the industry norm for that type of debt Unlawful and therefore not permittedWhat collection cost(s) can a collector lawfully attempt to recover from a debtor?* Costs incurred collecting debts in arrears of more than 2 years Default costs set out in the lending agreement All of these costs Court-ordered costs None of these costs Costs of more than $50A 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?* Not attempt to collect the debt Contact the previous agencies for enough information to prepare the accounting Any of these actions Contact the creditor and obtain sufficient information to prepare the accountingA 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 No
