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 AgencyDo debt collection agency employees performing collection functions from or into BC need a BC collector licence?*YesNoIf 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?*NoYesAn individual's credit report may include information that is adverse to their interests for what maximum period of time?*2 years6 years7 years4 yearsA debt collector must notify a debtor in writing prior to:*Freezing a debtor's bank accountGoing to their place of employmentMaking the first collection callAfter sending a written notice to a debtor of the assignment of the debt for collection, the collector must wait:*5 days before verbally contacting the debtorThere is no required waiting period24 hours before verbally contacting the debtor7 days before verbally contacting the debtor14 days before verbally contacting the debtorIn order for a debtor to dispute a debt and stop all collection activity, except legal action, the debtor must:*Clearly state their reasons for disputing the debtNotify the collector and the creditor in writing that the debt is disputed and the debtor wants the matter to go to courtBoth of theseNone of theseA collector can communicate with a family member or relative of a debtor if:*The debtor is unemployedThe debtor authorized the collector to do soThe debtor is unavailableAll of thseNone of theseApart 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.*TrueFalseA collector may only speak with a debtor's neighbour or relative if the collector has made 3 unsuccessful attempts to contact the debtor.*TrueFalseIt is a legislated requirement that a debtor's employer respond to a collector's inquiries about an employee.*TrueFalseIt is acceptable to demand that a debtor submit written notice or payment via registered mail.*FalseTrueFor a credit agreement that is silent about interest charges on overdue amounts, a debtor is only responsible to pay:*Simple interestInterest applied on the debt by the creditorCompound interestCourt-ordered interestInterested applied on the debt by the collectorA debtor's spouse is equally liable for a debt even if she or he is not named in the credit agreement.*FalseTrueA collector may be required to show evidence that they believed the person they contacted to pay a debt was actually the debtor.*TrueFalseA 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.*FalseTrueAt the beginning of a communication with a debtor, the collector must clearly identify themself to a debtor as a third-party collection agent.*TrueFalseIt is acceptable for a collector to identify themselves as someone other than a collector when trying to locate a debtor.*FalseTrueWhen 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.*FalseTrueWhen a collection agent purchases a debt:*None of theseA licence is still required to collect the debt since the agent is not the original creditorThe time period for reporting the debt on the debtor's credit report is reset to the beginningThe 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.*FalseTrueOne of only 2 reasons a collector can contact a debtor's family or acquaintances is:*To determine from the person contacted where the debtor is employedTo determine if the person contacted willhelp pay the debtNone of the reasonsTo have the person contacted forward a message to the debtorA 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?*NeverOnly once for each late payment no matter when the late payment is madeOnce each month that a payment is missedOnly 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?*NoYesYou 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?*NoYesIf 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 courtMust stop trying to collect the debt if the debtor informs you and the creditor in writing of the disputeCan demand to see the evidence that they haveIf 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 try to convince the person that they do indeed owe the debtCan keep calling until they are convinced the person is not 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-dueThe time limitation for collecting on the debt starts overThe debt is already so overdue that extra pressure is now OK to use on a debtor to make the debtor pay the debtOn a statutory holiday, a debtor or a debtor’s employer can only be called:*During regular business hoursNeverIf the debtor or the debtor’s employer requests and pre-arranges a time to be contactedLegal action can only be threatened or stated to a debtor if:*The debtor promised the collector they would pay the debt but have not done soThe debtor is making excuses for not paying the debt and the collector knows the debtor is lyingThe debtor has no obvious reason not to pay the debtThe creditor has previously approved, in writing to the collector, legal action for this debtorOn a debtor’s credit report, a past-due account will:*Remain forever, until the debt is paidBe visible for a set time period which re-starts each time the debt is transferred to a new collection agencyBe visible for a set time period that starts when the account becomes overdueCollection calls can be made on Sundays between 1pm and 5pm, local time for the debtor.*FalseTrueCollection calls can be made on BC Statutory holidays anytime during the day until 9pm each evening.*FalseTrueA 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?*YesNoMust a collector be able to account for any increase in the amount of a debt since it was first due and payable?*YesNoA collector demands a fee to provide a debtor with a breakdownamount 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 debtorThe collectorAfter 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?*NoYesDespite 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 amountWho must give notice to a debtor that a legal proceeding will be brought to recover a debt?*None of the 3 groupsA creditor collecting its own debtAll 3 groupsA debt buyer collecting on a purchased debtA collector assigned a debt for collection owing to another personWhat could happen if a collector does not notify a debtor that the collector intends to sue the debtor for recovery of a debt?*The collector is prohibited from bringing the proceedingThe proceeding could fail in courtAll of theseThe 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?*YesNoCould 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?*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?*YesNoHow long does an employee of a debt collection agency have to deposit payments received from debtors into the agency's trust account?*5 days10 days2 weeksUntil the end of the month in which it was receivedUntil the end of the following month in which it was receivedThe 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.*TrueFalseA 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?*NoYesA 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 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?*YesNoWhat penalties would collectors who contravene any of the legislative provisions regulating debt collection practices expose themselves to?*Convictions of an offenceLicence cancellationsAdministrative monetary penaltiesLicence suspensionsLegal proceedings for damages or lossAll of theseThe 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:*Too high, maximum should be the bank prime rateUnlawful and therefore not permittedReasonable and permittedOK if the rate is the industry norm for that type of debtA collector does not have a debtor's home contact information.Is a collector allowed to contact a debtor's neighbour to request the debtor's home address, phone number or email?*NoYes
