HomeDebt collector examIf 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 AgencyAn individual's credit report may include information that is adverse to their interests for what maximum period of time?* 6 years 2 years 4 years 7 yearsThe 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:* All of these options Collects or attempts to collect its own debts (as the original creditor) Collects or attempts to collect debt owed to another person Collects and attempts to collect debts it has purchasedA debt collector must notify a debtor in writing prior to:* Going to their place of employment Freezing a debtor's bank account Making the first collection callBefore being requested to pay, debtors must know:* What percentage of their payments go to the creditor None of these Who the collector is and under what authority they are demanding payment of the debt All of these That the collector is located in BCA debtor may agree to be contacted by the collector at their place of employment.* True FalseA debtor can compel a collection agency to contact them in writing only if:* The debtor submits the demand by email or letter and provides a mailing or emailing address where the debtor can be reached. The debtor provides a mailing address for the collector to use Both of these Neither of theseIt 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.* False TrueExcept for Sundays and statutory holidays, a debtor may be contacted between the hours of 7 a.m. and 9 p.m., local time for the collector.* 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:* Court-ordered interest Interested applied on the debt by the collector Simple interest Interest applied on the debt by the creditor Compound interestA collector may not state or threaten the possibility of a legal proceeding against a debtor if:* The debtor is unemployed or otherwise unable to pay the debt The collector does not already have the creditor's written authority The debtor has proven to be trustworthyStating the collector's intent to bring or continue a legal proceeding for which no lawful authority exists would be considered:* Acceptable practice for a debtor who is refusing to pay Too much pressure for a first-time debtor A prohibited collection practice and possibly a deceptive trade practiceA 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.* False TrueAt the beginning of a communication with a debtor, the collector must clearly identify themself to a debtor as a third-party collection agent.* False TruePromising a debtor that derogatory credit information will be deleted from the debtor's credit report following full payment of a debt is acceptable.* 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 TrueWhen a collection agent purchases a debt:* The time period for reporting the debt on the debtor's credit report is reset to the beginning None of these A licence is still required to collect the debt since the agent is not the original creditor The collection agent does not require a licence to collect the debt since it now owns the debtWho can a debtor sue if the debtor has suffered loss or damage due to a prohibited collection practice?* Both The collector The collection agentFor credit reporting purposes, which of the following events is used as the starting date for the 6-year maximum reporting period:* The date the account first went into arrears under the terms of the credit agreement The date when the debt arrears is first reported to a credit reporting agency The date the account is written off as uncollectable by the creditor The date the debt was assigned to the collection agency The date of the last payment on the debtA debtor told a collector that their mother may help pay a debt. Can the collector call the mother to pursue payment?* Yes NoYou 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?* Yes NoIf 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 court Can demand to see the evidence that they have Must stop trying to collect the debt if the debtor informs you and the creditor in writing of the disputeWhen 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 overOn a statutory holiday, a debtor or a debtor’s employer can only be called:* If the debtor or the debtor’s employer requests and pre-arranges a time to be contacted Never During regular business hoursA collector may call a debtor’s employer to:* Show a debtor that they can’t hide from their responsibility to pay the debt Request an agreement to garnish a debtor’s wages Confirm the debtor is employed there and to obtain the debtors title and work place address Let other people know that the debtor is not paying their billsBC's debt collection legislation applies to transactions, matters or things, regardless of whether they involve a consumer and or business.* False TrueUnder 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 TrueCollection 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?* Collection agencies located outside of BC collecting outside BC Debt buyers collecting their purchased debts Collection agencies located outside of BC collecting into BC Collection agencies located in 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?* 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 name of the original creditor The credit limit on the account The employment status of the debtor The time allowed the debtor to pay the debtA 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 address is from 3 years ago or longer All of these The collection agency usually only sends the initial notice by email so the email is needed The debtor has a reputation of lying to other collectors The collector has actual reasons to believe it is not correctA 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?* No YesA 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?* No YesHow many notices must a debtor be sent by a collector intending to sue on a debt assigned to the collector?* Three One Two NoneWhat 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 action The proceeding could fail in court All of these The collector is prohibited from bringing the proceedingMust 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 NoCould 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?* No YesA 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 NoCan the number of times a collector calls a debtor about a debt (call frequency) be considered as harassment of the debtor under the legislation?* 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?* Depends on situation Yes NoWhat penalties would collectors who contravene any of the legislative provisions regulating debt collection practices expose themselves to?* Licence suspensions Convictions of an offence Administrative monetary penalties Licence cancellations Legal proceedings for damages or loss All of theseA debtor is fired from their job because of repeated calls from a collector that required them to leave their work station for extended periods. Can the debtor bring a legal action against the collector for any damages or losses that resulted from their loss of employment?* No YesWhat collection cost(s) can a collector lawfully attempt to recover from a debtor?* Court-ordered costs Costs of more than $50 Costs incurred collecting debts in arrears of more than 2 years Default costs set out in the lending agreement None of these costs All of these costsA collector wants to send the notice to a debtor to begin verbal collection activity. They do not have the debtor's home address or email. To get this information they call the debtor at home. Is this lawful since the initial notice has not been provided to the debtor?* No YesA 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?* No YesCAPTCHA TweetShareSharePin0 Shares
