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 AgencyWhat is the name of the legislation that governs debt collection activity in British Columbia?* Business Practices and Consumer Protection Act Debtors Assistance Act Bankruptcy and Insolvency Act Business Corporation ActIf 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 NoAn individual's credit report may include information that is adverse to their interests for what maximum period of time?* 6 years 4 years 7 years 2 yearsA collector is a person who:* Collects or attempts to collect its own debts (as the original creditor) All of these options Collects or attempts to collect debt owed to another person Collects and attempts to collect debts it has purchasedA 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 callA 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 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 TrueUnless requested by the employer, a collector may not contact a debtor's employer on a BC statutory holiday.* True FalseUnless there is a history of dishonoured payments, a debtor must be allowed to make a debt payment using a cheque.* True FalseFor a credit agreement that is silent about interest charges on overdue amounts, a debtor is only responsible to pay:* Simple interest Court-ordered interest Interested applied on the debt by the collector Interest applied on the debt by the creditor Compound interestUnless a family member or friend of a debtor is a co-borrower or guarantor, they are not responsible for paying for the debt.* True FalseIf a person informs a collector that they are not the debtor, the collector must:* All of these options None of these options Stop contacting the individual Give up on collecting the debt Make reasonable efforts to ensure that the person is the debtor before contacting the person againWritten notice must be provided by a collector to a debtor before starting a legal proceeding to recover that debt.* False TrueAdvising 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 TrueNon payment of a contractual debt is a criminal offence and may result in 6 months imprisonment or a $10,000 fine.* True FalseOnce a collector has confirmed that they are communicating with the debtor, the collector must immediately identify themselves as a collector.* False TrueWhen a collection agent purchases a debt:* A licence is still required to collect the debt since the agent is not the original creditor The time period for reporting the debt on the debtor's credit report is reset to the beginning None of these The collection agent does not require a licence to collect the debt since it now owns 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.* True FalseTo compensate for allowing a debt to default, a debtor must pay any reasonable collection costs a collector may incur while collecting or attempting to collect the debt.* True FalseFor credit reporting purposes, which of the following events is used as the starting date for the 6-year maximum reporting period:* 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 when the debt arrears is first reported to a credit reporting agency The date the debt was assigned to the collection agency The date of the last payment on the debtA 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 collector is assigned a purchased debt to collect. Must the collector know and inform the debtor of the name of the original creditor?* Yes NoPreviously, 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 YesWhen a collection agency begins to collect a debt:* The time limitation remains unchanged and is still calculated from the date the debt first became past-due The debt is already so overdue that extra pressure is now OK to use on a debtor to make the debtor pay the debt The time limitation for collecting on the debt starts overWhen 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 acting illegally The debtor can be sued for not answering collection letters The collector cannot begin to call the debtor again The debtor is ignoring the fact that they have not paid their bill and the collector should start calling againBC's debt collection legislation applies to transactions, matters or things, regardless of whether they involve a consumer and or business.* False TrueUnder 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 TrueDebtors are not obligated to communicate with debt collectors if they are contacted at their places of employment.* False TrueCan a collector attempt to collect a debt if the collector does not know who the original creditor was?* Yes NoA collector does not know who the original creditor of an assigned debt was but does provide the debtor with an account number of the debt. Can the collector attempt to collect the debt?* No YesMust 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 who has a home address of a debtor may only call the debtor before sending out the Section 115(1) initial notice if:* The address is from 3 years ago or longer All of these 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 correctA 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 YesAfter reaching a debtor on their home telephone, the collector must do what as soon as the contact is established?* Be adaptive and do what the collector believes will result in 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 Threaten the debtor with legal action if the debtor hangs up Demand payment of the debt Identify themself and their authority to collect the debtAfter two way communication is established with a debtor, when must the collector identify themselves?* Only the identity of the collection agency is required Immediately Before demanding payment of the debt involved Never unless the collector wants to Sometime before the end of the communicationA 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?* All 3 groups None of the 3 groups A collector assigned a debt for collection owing to another person A debt buyer collecting on a purchased debt A creditor collecting its own debtMust 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 NoCould 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 YesCan 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?* 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?* Yes NoCan the director publish the name of a creditor against whom an action has been taken?* Yes NoThe 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 Unlawful and therefore not permitted Reasonable and permitted Too high, maximum should be the bank prime rateA collection agency purchased the arrears debt of a business that has closed. Many of the debts appear, on their face, to be statute-barred under the Limitations Act. Can the agency collect the debts anyway?* Yes NoWhat collection cost(s) can a collector lawfully attempt to recover from a debtor?* None of these costs Costs of more than $50 Court-ordered costs All of these costs Default costs set out in the lending agreement Costs incurred collecting debts in arrears of more than 2 yearsA 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 NoCan a debtor "call block" a collector so avoid future telephone calls from the collector?* Not governed under the BPCP Act or Debt Collertion Industry Regulation Yes NoCAPTCHA TweetShareSharePin0 Shares
