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 NoThe 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 FalseA 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 purchased All of these options Collects or attempts to collect debt owed to another personA debt collector must be licensed in BC if they are contacting BC debtors from an office located in:* Anywhere in the world Canada BCA debt collector may not communicate verbally with a debtor until the collector:* Obtains a copy of the debtor's credit report and reviews it Receives agreement in writing that they can contact the debtor Sends written notice to the debtor Knows that the debtor is employed full-time Knows that the debtor is employed at least 15 hours per weekA debtor must communicate with a debt collector if they are contacted at their place of employment.* False TrueA debtor can compel a collection agency to contact them in writing only if:* Both of these Neither of these The debtor provides a mailing address for the collector to use The debtor submits the demand by email or letter and provides a mailing or emailing address where the debtor can be reached.Apart 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.* False TrueA reasonable amount of pressure can be applied to family and friends of debtors in order to have the debtor contact the collector.* 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.* False TrueIf there is no history of dishonoured payments, a collector must allow a debt to be paid by cheque or debit card.* True FalseIt is acceptable to demand that a debtor submit written notice or payment via registered mail.* False TrueFor a credit agreement that is silent about interest charges on overdue amounts, a debtor is only responsible to pay:* Compound interest Simple interest Court-ordered interest Interest applied on the debt by the creditor Interested applied on the debt by the collectorUnless a family member or friend of a debtor is a co-borrower or guarantor, they are not responsible for paying for the debt.* False TrueA collector may be required to show evidence that they believed the person they contacted to pay a debt was actually the debtor.* True FalseAt the beginning of a communication with a debtor, the collector must clearly identify themself to a debtor as a third-party collection agent.* 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 may refuse to give an uncooperative debtor their BC collection agent and employee licensing information.* True FalseIt is acceptable for a collector to identify themselves as someone other than a collector when trying to locate a debtor.* False TrueWho can a debtor sue if the debtor has suffered loss or damage due to a prohibited collection practice?* Both The collector The collection agentA 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 missed Only once regardless of the number of late payments or when they are made Only once for each late payment no matter when the late payment is made NeverA 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?* Yes NoA collector is assigned a purchased debt to collect. Must the collector know and inform the debtor of the name of the original creditor?* No YesIf a debtor informs you that they are disputing the debt you are calling about, you:* Must stop trying to collect the debt if the debtor informs you and the creditor in writing of the dispute Can demand to see the evidence that they have Can still contact them about the debt until they actually go to courtWhen 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 debt The time limitation for collecting on the debt starts over The 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:* During regular business hours If the debtor or the debtor’s employer requests and pre-arranges a time to be contacted NeverLegal action can only be threatened or stated to a debtor if:* The debtor is making excuses for not paying the debt and the collector knows the debtor is lying The creditor has previously approved, in writing to the collector, legal action for this debtor The debtor promised the collector they would pay the debt but have not done so The debtor has no obvious reason not to pay the debtIf 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.* True FalseA collector does not require authorization from the debtor to communicate with a debtor's employer to confirm the debtor's wages, benefits or personal information related to collecting the debt.* False TrueCollection 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?* 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:* The debtor has a reputation of lying to other collectors The collector has actual reasons to believe it is not correct The collection agency usually only sends the initial notice by email so the email is needed All of these 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?* No YesAfter two way communication is established with a debtor, when must the collector identify themselves?* Immediately Before demanding payment of the debt involved Only the identity of the collection agency is required Sometime before the end of the communication Never unless the collector wants toA 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?* Yes NoWho must give notice to a debtor that a legal proceeding will be brought to recover a debt?* None of the 3 groups A creditor collecting its own debt A debt buyer collecting on a purchased debt A collector assigned a debt for collection owing to another person All 3 groupsBefore 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)?* None of these things Sent a similar request first to the registered corporate office of the employer Given notice to the debtor that the collector intends to bring proceedings to collect the debt Reviewed the file with a lawyer Obtained the employer's legal name and mailing addressMust 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?* No YesUnder the Debt Collection And Repayment Regulation, what must an employee of a licensed collection agency do if the employee receives money from a debtor?* Calculate their commission on the payment and advise their employer accordingly None of the 3 actions, All of the 3 actions Thank the debtor for the payment Ensure the money is deposited directly into the collection agencies' trust account within 5 days of when the money was receivedHow long does an employee of a debt collection agency have to deposit payments received from debtors into the agency's trust account?* 5 days 10 days 2 weeks Until the end of the month in which it was received Until the end of the following month in which it was receivedCan the director publish the name of a creditor against whom an action has been taken?* 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 YesWhat penalties would collectors who contravene any of the legislative provisions regulating debt collection practices expose themselves to?* Licence suspensions Convictions of an offence Licence cancellations All of these Legal proceedings for damages or loss Administrative monetary penaltiesA 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 NoWhat collection cost(s) can a collector lawfully attempt to recover from a debtor?* Court-ordered costs All of these costs None of these costs Costs of more than $50 Default costs set out in the lending agreement Costs incurred collecting debts in arrears of more than 2 yearsA 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 YesDebtors may be contacted at their cell phone number if:* They provided it to the collector They provided it to the creditor and the collector does not have a land line number for the debtor The debtor has a land line but requested to be called on their cell phone All of theseCAPTCHA TweetShareSharePin0 Shares
