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 Practices and Consumer Protection ActDebtors Assistance ActBankruptcy and Insolvency ActBusiness Corporation 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 .*TrueFalseThe time limitation on reporting adverse information on a debtor's credit report may be extended by the purchase of the debt by a collection agency or other third party.*FalseTrueA 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 personCollects and attempts to collect debts it has purchasedAll of these optionsA debt collector may not communicate verbally with a debtor until the collector:*Receives agreement in writing that they can contact the debtorKnows that the debtor is employed full-timeObtains a copy of the debtor's credit report and reviews itSends written notice to the debtorKnows that the debtor is employed at least 15 hours per weekA debtor may agree to be contacted by the collector at their place of employment.*FalseTrueIt 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.*TrueFalseIn 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 theseIt 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.*TrueFalseIf there is no history of dishonoured payments, a collector must allow a debt to be paid by cheque or debit card.*TrueFalseA collector may be required to show evidence that they believed the person they contacted to pay a debt was actually the debtor.*FalseTrueIf a person informs a collector that they are not the debtor, the collector must:*All of these optionsGive up on collecting the debtMake reasonable efforts to ensure that the person is the debtor before contacting the person againStop contacting the individualNone of these optionsWritten notice must be provided by a collector to a debtor before starting a legal proceeding to recover that debt.*FalseTrueA creditor may give a collector the authority to bring or continue a legal proceeding by:*Both of these optionsGranting the authority in writing in each caseGranting the authority in the collection agreement between the creditor and collection agentPromising a debtor that derogatory credit information will be deleted from the debtor's credit report following full payment of a debt is acceptable.*FalseTrueA debtor who refuses to either pay a lawful debt or make a suitable payment arrangement enables the collector to contact the local police for assistance.*FalseTrueOnce a collector has confirmed that they are communicating with the debtor, the collector must immediately identify themselves as a collector.*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.*TrueFalseA collector may charge an uncooperative debtor for the reasonable collection costs incurred by the collector while collecting the debt.*TrueFalseWho can a debtor sue if the debtor has suffered loss or damage due to a prohibited collection practice?*The collectorBothThe collection agentOne of only 2 reasons a collector can contact a debtor's family or acquaintances is:*To determine if the person contacted will help pay the debtNone of the reasonsTo have the person contacted forward a message to the debtorTo determine from the person contacted where the debtor is employedA collector is assigned a purchased debt to collect. Must the collector know and inform the debtor of the name of the original creditor?*YesNoRemembrance Day falls on a Sunday. When can a collector telephone a debtor?*Only between 11 a.m. and 9 p.m.None of these optionsOnly after 11 a.m. until 5 p.m.Only between 1 p.m. and 5 p.m.If 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 haveOn 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 creditor has previously approved, in writing to the collector, legal action for this debtorThe debtor has no obvious reason not to pay the debtThe debtor is making excuses for not paying the debt and the collector knows the debtor is lyingA collector may call a debtor’s employer to:*Show a debtor that they can’t hide from their responsibility to pay the debtConfirm the debtor is employed there and to obtain the debtors title and work place addressRequest an agreement to garnish a debtor’s wagesLet other people know that the debtor is not paying their billsUnder 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.*FalseTrueThreatening to publish a debtor's failure to pay a debt in a manner generally accessible to the public constitutes harassment under the Act.*TrueFalseCollection calls can be made on BC Statutory holidays anytime during the day until 9pm each evening.*FalseTrueMust a collector be able to account for any increase in the amount of a debt since it was first due and payable?*YesNoPrior 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 time allowed the debtor to pay the debtThe debtors cell phone number, if anyThe name of the original creditorThe employment status of the debtorThe 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 collectorThe debtorA 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?*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?*NoYesA collector is unsuccessful in contacting a debtor by email which is the only contact info they have for the debtor. The collector wants to call the debtor at work to obtain the debtor's home phone number. Is this allowed?*YesNoA notice sent to a debtor under S. 121 of the Act that states the collector intends to begin action to recover a debt can be general in nature and not reference the debt(s) owed that would be subject of the proceeding.*TrueFalseWhat 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 actionThe collector is prohibited from bringing the proceedingAll of theseThe proceeding could fail in courtBefore 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 thingsObtained the employer's legal name and mailing addressGiven notice to the debtor that the collector intends to bring proceedings to collect the debtSent a similar request first to the registered corporate office of the employerReviewed the file with a lawyerCan 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?*YesNoIf a debtor is called by a collector with such a frequency or in such a manner that it upsets the debtor, can the debtor end all future verbal communications with the collector?*NoYesHow 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 receivedCan 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?*NoYesA 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?*Depends on situationNoYesA 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?*Administrative monetary penaltiesLicence cancellationsLegal proceedings for damages or lossLicence suspensionsAll of theseConvictions of an offenceA 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?*YesNoA 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?*YesNoWhat collection cost(s) can a collector lawfully attempt to recover from a debtor?*Default costs set out in the lending agreementCourt-ordered costsAll of these costsCosts incurred collecting debts in arrears of more than 2 yearsNone of these costsCosts of more than $50