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 ActA collector is a person who:*All of these optionsCollects and attempts to collect debts it has purchasedCollects or attempts to collect its own debts (as the original creditor)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:*CanadaAnywhere in the worldBCThreatening to publish a debtor's failure to pay a debt, in a manner generally accessible to the public, is acceptable under the Act.*TrueFalseA debt collector may not communicate verbally with a debtor until the collector:*Receives agreement in writing that they can contact the debtorSends written notice to the debtorKnows that the debtor is employed at least 15 hours per weekObtains a copy of the debtor's credit report and reviews itKnows that the debtor is employed full-timeA debtor must communicate with a debt collector if they are contacted at their place of employment.*TrueFalseA debtor can compel a collection agency to contact them in writing only if:*The debtor provides a mailing address for the collector to useThe debtor submits the demand by email or letter and provides a mailing or emailing address where the debtor can be reached.Both of theseNeither 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.*TrueFalseIt is a legislated requirement that a debtor's employer respond to a collector's inquiries about an employee.*TrueFalseOn a statutory holiday, a BC debtor may receive a collection call only if they have specifically requested to be contacted on that day.*TrueFalseUnless there is a history of dishonoured payments, a debtor must be allowed to make a debt payment using a cheque.*FalseTrueA 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.*FalseTrueIf a person informs a collector that they are not the debtor, the collector must:*Stop contacting the individualNone of these optionsMake reasonable efforts to ensure that the person is the debtor before contacting the person againGive up on collecting the debtAll 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.*TrueFalseAt the beginning of a communication with a debtor, the collector must clearly identify themself to a debtor as a third-party collection agent.*FalseTrueA collector is able to automatically garnish a debtor's wages under the Business Practices & Consumer Protection Act.*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.*TrueFalseWhen a collection agent purchases a debt:*None of theseThe 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 debtA licence is still required to collect the debt since the agent is not the original creditorA collector may charge an uncooperative debtor for the reasonable collection costs incurred by the collector while collecting the debt.*FalseTrueTo compensate for allowing a debt to default, a debtor must pay any reasonable collection costs a collector may incur while collecting or attempting to collect the debt.*TrueFalseA 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 arrearsOnly on the amount of the debt that is in arrearsBoth of thoseNeither 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?*Only once for each late payment no matter when the late payment is madeNeverOnce 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?*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 courtCan 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 disputeParents or family of a debtor are responsible for the debt if:*the debtor is away on vacation and cannot be reached to collect the debtthe debtor is acting irresponsiblythey co-signed on the debt or guaranteed repayment of the debtLegal action can only be threatened or stated to a debtor if:*The creditor has previously approved, in writing to the collector, legal action for this debtorThe debtor promised the collector they would pay the debt but have not done soThe 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 lyingWhen a debtor has requested communication in writing only but has not responded to any of the letters sent to them by the collector,*The debtor is ignoring the fact that they have not paid their bill and the collector should start calling againThe debtor is acting illegallyThe collector cannot begin to call the debtor againThe debtor can be sued for not answering collection lettersA collector may call a debtor’s employer to:*Confirm 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 billsShow a debtor that they can’t hide from their responsibility to pay the debtUnder 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.*TrueFalseWho does NOT need a debt collection licence issued by Consumer Protection BC?*Debt buyers collecting their purchased debtsCollection agencies located in BCCollection agencies located outside of BC collecting outside BCCollection agencies located outside of BC collecting into BCA 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?*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 name of the original creditorThe employment status of the debtorThe time allowed the debtor to pay the debtThe debtors cell phone number, if anyThe credit limit on the accountA 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?*NoYesA 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 collector has actual reasons to believe it is not correctThe address is from 3 years ago or longerThe collection agency usually only sends the initial notice by email so the email is neededThe debtor has a reputation of lying to other collectorsAll of theseA 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?*NoYesAfter 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 upDemand payment of the debtIdentify themself and their authority to collect the debtBe 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 owedAfter two way communication is established with a debtor, when must the collector identify themselves?*Never unless the collector wants toOnly the identity of the collection agency is requiredImmediatelySometime before the end of the communicationBefore demanding payment of the debt involvedWhat 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 courtCan 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?*NoYesCould 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?*YesNoA 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?*NoYesThe legislation allows a collector to attempt to contact a debtor at their place of employment under two very restricted circumstances. Does the law also require the debtor to communicate with the collector during either of these attempts?*YesNoThe 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.*FalseTrueA 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?*YesNoDepends on situationA 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?*NoYesA 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?*YesNoA collector only has a home 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?*YesNoDebtors 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
