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 AgencyThe 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 .* False TrueThe 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.* True FalseA collector is a person who:* Collects and attempts to collect debts it has purchased Collects or attempts to collect debt owed to another person Collects or attempts to collect its own debts (as the original creditor) All of these optionsThreatening to publish a debtor's failure to pay a debt, in a manner generally accessible to the public, is acceptable under the Act.* False TrueA debt collector must notify a debtor in writing prior to:* Making the first collection call Freezing a debtor's bank account Going to their place of employmentA debtor must communicate with a debt collector if they are contacted at their place of employment.* False TrueA collector may only speak with a debtor's neighbour or relative if the collector has made 3 unsuccessful attempts to contact the debtor.* True FalseA reasonable amount of pressure can be applied to family and friends of debtors in order to have the debtor contact the collector.* True FalseCollection calls can be made to BC residents on Sundays between 9am and 5pm.* True FalseUnless requested by the employer, a collector may not contact a debtor's employer on a BC statutory holiday.* True FalseIf there is no history of dishonoured payments, a collector must allow a debt to be paid by cheque or debit card.* False TrueFor a credit agreement that is silent about interest charges on overdue amounts, a debtor is only responsible to pay:* Interested applied on the debt by the collector Court-ordered interest Compound interest Interest applied on the debt by the creditor Simple interestParents of a debtor may be contacted about a debt if:* Neither of these Both of these They guaranteed the debt which is in default The debtor lives with themA collector may be required to show evidence that they believed the person they contacted to pay a debt was actually the debtor.* False TrueStating the collector's intent to bring or continue a legal proceeding for which no lawful authority exists would be considered:* A prohibited collection practice and possibly a deceptive trade practice Acceptable practice for a debtor who is refusing to pay Too much pressure for a first-time debtorA collector may not use an alias unless the alias appears on their BC collector licence issued by Consumer Protection BC.* False TrueAdvising 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.* False TrueA collector is able to automatically garnish a debtor's wages under the Business Practices & Consumer Protection Act.* True FalseThe complete assignment or sale of a debt requires any resulting collection activity to be performed only by a licensed collection agent and collector.* True FalseA collector may charge an uncooperative debtor for the reasonable collection costs incurred by the collector while collecting the debt.* False TrueIt is considered an unreasonable collection practice for a collector to advise a debtor that the debtor will be responsible for the creditor's lawyer fees for an action that would be heard in Provincial Court.* 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?* Yes NoOne of only 2 reasons a collector can contact a debtor's family or acquaintances is:* To have the person contacted forward a message to the debtor To determine if the person contacted will help pay the debt None of the reasons To 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?* No YesRemembrance Day falls on a Sunday. When can a collector telephone a debtor?* Only between 1 p.m. and 5 p.m. Only between 11 a.m. and 9 p.m. None of these options Only after 11 a.m. until 5 p.m.Parents or family of a debtor are responsible for the debt if:* the debtor is away on vacation and cannot be reached to collect the debt they co-signed on the debt or guaranteed repayment of the debt the debtor is acting irresponsiblyLegal action can only be threatened or stated to a debtor if:* The debtor has no obvious reason not to pay the debt 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 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 again The debtor can be sued for not answering collection letters The debtor is acting illegally The collector cannot begin to call the debtor againBC's debt collection legislation applies to transactions, matters or things, regardless of whether they involve a consumer and or business.* False TrueThreatening to publish a debtor's failure to pay a debt in a manner generally accessible to the public constitutes harassment under the Act.* 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 FalseCollection calls can be made on Sundays between 1pm and 5pm, local time for the debtor.* False TrueWho does NOT need a debt collection licence issued by Consumer Protection BC?* Debt buyers collecting their purchased debts Collection agencies located in BC Collection agencies located outside of BC collecting outside BC Collection agencies located outside of BC collecting into BCMust a collector be able to account for any increase in the amount of a debt since it was first due and payable?* Yes NoPrior 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 employment status of the debtor The time allowed the debtor to pay the debt The name of the original creditor The credit limit on the accountS.116(1) allows a collector to contact a debtor at work if unsuccessful contacting the debtor at their home; address, phone number or email. How many times can the collector attempt to communicate with an uncooperative debtor at work?* Only 2 times As many times as required 3 times maximum 0 times Only 1 timeDespite 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 credible Tell the debtor a breakdown will be provided later Attempt to collect only the initial amount owing when the debt first became due Do not commence any collection activity until a reconciliation has been done Discount 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?* A creditor collecting its own debt All 3 groups None of the 3 groups A debt buyer collecting on a purchased debt A collector assigned a debt for collection owing to another personBefore 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)?* Sent a similar request first to the registered corporate office of the employer Reviewed the file with a lawyer None of these things Given notice to the debtor that the collector intends to bring proceedings to collect the debt 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?* Yes NoA 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?* Yes NoIf 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?* Yes NoThe 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?* 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 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 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?* No 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:* Reasonable and permitted OK if the rate is the industry norm for that type of debt Too high, maximum should be the bank prime rate Unlawful and therefore not permittedA 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 NoA 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?* 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 these
