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 AgencyWhat is the name of the legislation that governs debt collection activity in British Columbia?* Debtors Assistance Act Business Corporation Act Business Practices and Consumer Protection Act Bankruptcy and Insolvency ActA 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 All of these options Collects and attempts to collect debts it has purchasedThe prohibited debt collection practices in the legislation are applicable to third-party collection agents as well as to creditors collecting their own debts and buyers of third party debts.* True FalseA debt collector must be licensed in BC if they are contacting BC debtors from an office located in:* BC Canada Anywhere in the worldBefore being requested to pay, debtors must know:* All of these None of these Who the collector is and under what authority they are demanding payment of the debt What percentage of their payments go to the creditor That the collector is located in BCA debtor must communicate with a debt collector if they are contacted at their place of employment.* False TrueIt 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.* True FalseA collector may only speak with a debtor's neighbour or relative if the collector has made 3 unsuccessful attempts to contact the debtor.* False TrueA reasonable amount of pressure can be applied to family and friends of debtors in order to have the debtor contact the collector.* 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.* True FalseIt is acceptable to demand that a debtor submit written notice or payment via registered mail.* True FalseParents of a debtor may be contacted about a debt if:* Both of these The debtor lives with them They guaranteed the debt which is in default Neither of theseA debtor's spouse is equally liable for a debt even if she or he is not named in the credit agreement.* False TrueA 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 optionsA collector who is not the original creditor or an employee of the original creditor contacting a debtor and presenting themselves as the creditor is acceptable.* False TrueA collector may not use an alias unless the alias appears on their BC collector licence issued by Consumer Protection BC.* 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.* False TrueOnce 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 TrueA collector may charge an uncooperative debtor for the reasonable collection costs incurred by the collector while collecting the debt.* False TrueIf a collector engages in a prohibited collection practice, can the debtor sue for any damages or loss that result from the prohibited practice?* No YesWho can a debtor sue if the debtor has suffered loss or damage due to a prohibited collection practice?* The collector Both The collection agentA 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 missedPreviously, 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?* Yes NoIf 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 increase the frequency of calls because the debtor is not cooperating May continue to make calls at the same frequency because there is nothing wrong with the number of calls they’re making to the debtorWhen 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 overA collector may call a debtor’s employer to:* Request an agreement to garnish a debtor’s wages Let other people know that the debtor is not paying their bills Confirm the debtor is employed there and to obtain the debtors title and work place address Show a debtor that they can’t hide from their responsibility 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.* False TrueA 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.* True FalseWho does NOT need a debt collection licence issued by Consumer Protection BC?* Collection agencies located in BC Debt buyers collecting their purchased debts Collection agencies located outside of BC collecting outside BC Collection agencies located outside of BC collecting into BCPrior 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 debtors cell phone number, if any The name of the original creditor The time allowed the debtor to pay the debt The employment status of the debtor The credit limit on the accountA 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 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?* Yes NoAfter two way communication is established with a debtor, when must the collector identify themselves?* Only the identity of the collection agency is required Before demanding payment of the debt involved Immediately 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?* 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 All 3 groups A debt buyer collecting on a purchased 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?* Three One None TwoBefore 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 Obtained the employer's legal name and mailing address Reviewed the file with a lawyerUnder 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 All of the 3 actions None 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 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?* No Depends on situation 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?* 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 Reasonable and permitted Too high, maximum should be the bank prime rate Unlawful and therefore not permittedWhat collection cost(s) can a collector lawfully attempt to recover from a debtor?* All of these costs Court-ordered costs Costs incurred collecting debts in arrears of more than 2 years None of these costs Costs of more than $50 Default costs set out in the lending agreementA 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?* Any of these actions Contact the previous agencies for enough information to prepare the accounting Not attempt to collect the debt Contact the creditor and obtain sufficient information to prepare the accountingCan a debtor "call block" a collector so avoid future telephone calls from the collector?* No Yes Not governed under the BPCP Act or Debt Collertion Industry Regulation