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 anonymouslyYesNoName First Last Email Enter Email Confirm Email Collection AgencyWhat is the name of the legislation that governs debt collection activity in British Columbia?*Business Corporation ActBankruptcy and Insolvency ActBusiness Practices and Consumer Protection ActDebtors Assistance ActThe 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 .*FalseTrueA collector is a person who:*Collects or attempts to collect its own debts (as the original creditor)Collects and attempts to collect debts it has purchasedCollects or attempts to collect debt owed to another personAll of these optionsA debt collector must be licensed in BC if they are contacting BC debtors from an office located in:*CanadaAnywhere in the worldBCWho can allege harassment due to the manner or frequency of communication with a collector?*A debtor's neighbourA debtor's family memberNone of theseA debtor's employerAll 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.The debtor provides a mailing address for the collector to useBoth of theseNeither of theseIt is at the discretion of the collector whether the collection agency will deal with a debtor's lawyer or not, after being advised in writing by the debtor to do so.*TrueFalseApart from being authorized by the debtor to do so, the only reason a collector may communicate with a debtor's employer is to confirm the debtor's employment, business title and business address.*FalseTrueIt is a legislated requirement that a debtor's employer respond to a collector's inquiries about an employee.*FalseTrueCollection calls can be made to BC residents on Sundays between 9am and 5pm.*TrueFalseUnless there is a history of dishonoured payments, a debtor must be allowed to make a debt payment using a cheque.*TrueFalseA collector cannot collect an amount that is more than the amount of the debt owed to the creditor.*TrueFalseFor a credit agreement that is silent about interest charges on overdue amounts, a debtor is only responsible to pay:*Court-ordered interestInterested applied on the debt by the collectorInterest applied on the debt by the creditorCompound interestSimple interestParents of a debtor may be contacted about a debt if:*They guaranteed the debt which is in defaultBoth of theseNeither of theseThe debtor lives with themA 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 agentGranting the authority in writing in each caseBoth of these optionsAdvising 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.*FalseTrueNon payment of a contractual debt is a criminal offence and may result in 6 months imprisonment or a $10,000 fine.*FalseTrueA collector is able to automatically garnish a debtor's wages under the Business Practices & Consumer Protection Act.*TrueFalseOnce a collector has confirmed that they are communicating with the debtor, the collector must immediately identify themselves as a collector.*TrueFalseWhen 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.*TrueFalseIt 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.*FalseTrueFor 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 is written off as uncollectable by the creditorThe date the debt was assigned to the collection agencyThe date when the debt arrears is first reported to a credit reporting agencyThe date the account first went into arrears under the terms of the credit agreementThe date of the last payment on the debtA 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?*Once each month that a payment is missedNeverOnly once for each late payment no matter when the late payment is madeOnly once regardless of the number of late payments or when they are madeA 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?*YesNoIf a debtor informs you that they are disputing the debt you are calling about, you:*Can demand to see the evidence that they haveMust stop trying to collect the debt if the debtor informs you and the creditor in writing of the disputeCan still contact them about the debt until they actually go to courtIf a collector contacts a person about a debt they owe and the person says they are not the debtor, the collector:*Must stop contacting the person and double-check the information they haveCan keep calling until they are convinced the person is not the debtorCan try to convince the person that they do indeed owe the debtIf a debtor expresses concern about the number of calls they are receiving from a collector, the collector:*May continue to make calls at the same frequency because there is nothing wrong with the number of calls they’re making to the debtorMust ensure the frequency of calls is not excessive or unreasonable in the circumstancesMay increase the frequency of calls because the debtor is not cooperatingWhen a collection agency begins to collect a debt:*The debt is already so overdue that extra pressure is now OK to use on a debtor to make the debtor pay the debtThe time limitation for collecting on the debt starts overThe time limitation remains unchanged and is still calculated from the date the debt first became past-dueOn a statutory holiday, a debtor or a debtor’s employer can only be called:*NeverDuring regular business hoursIf the debtor or the debtor’s employer requests and pre-arranges a time to be contactedWhen a debtor has requested communication in writing only but has not responded to any of the letters sent to them by the collector,*The collector cannot begin to call the debtor againThe debtor is ignoring the fact that they have not paid their bill and the collector should start calling againThe debtor can be sued for not answering collection lettersThe debtor is acting illegallyA 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.*TrueFalsePrior 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 accountThe debtors cell phone number, if anyThe name of the original creditorThe employment status of the debtorThe time allowed the debtor to pay the debtA 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?*YesNoA 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?*YesNoA 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?*YesNoAfter 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?*YesNoAfter 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 upBe adaptive and do what the collector believes will result in payment of the debtIdentify themself and their authority to collect the debt and give the debtor details about the debt ownership and amount owedDemand payment of the debtIdentify themself and their authority to collect the debtDespite 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 credibleTell the debtor a breakdown will be provided laterAttempt to collect only the initial amount owing when the debt first became dueDo not commence any collection activity until a reconciliation has been doneDiscount 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?*The debtor could use the failure to provide the required notice as a defense to the actionAll of theseThe proceeding could fail in courtThe collector is prohibited from bringing the proceedingCan 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?*NoYesA 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?*NoYesCan the number of times a collector calls a debtor about a debt (call frequency) be considered as harassment of the debtor under the legislation?*NoYesUnder the Debt Collection And Repayment Regulation, what must an employee of a licensed collection agency do if the employee receives money from a debtor?*All of the 3 actionsEnsure the money is deposited directly into the collection agencies' trust account within 5 days of when the money was receivedCalculate their commission on the payment and advise their employer accordinglyThank the debtor for the paymentNone of the 3 actions,Can 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?*YesNoA 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?*YesNoA 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?*NoYesA 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?*YesNoA 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?*YesNoWhat collection cost(s) can a collector lawfully attempt to recover from a debtor?*Default costs set out in the lending agreementCosts of more than $50None of these costsAll of these costsCosts incurred collecting debts in arrears of more than 2 yearsCourt-ordered costsDebtors may be contacted at their cell phone number if:*They provided it to the collectorThey provided it to the creditor and the collector does not have a land line number for the debtorThe debtor has a land line but requested to be called on their cell phoneAll of these
