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 AgencyWhat is the name of the legislation that governs debt collection activity in British Columbia?* Bankruptcy and Insolvency Act Business Corporation Act Debtors Assistance Act Business Practices and Consumer Protection 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 .* False TrueThe prohibited debt collection practices in the legislation are applicable to third-party collection agents as well as to creditors collecting their own debts and buyers of third party debts.* True FalseWho can allege harassment due to the manner or frequency of communication with a collector?* None of these A debtor's family member A debtor's employer A debtor's neighbour All of theseA debt collector must notify a debtor in writing prior to:* Freezing a debtor's bank account Making the first collection call Going to their place of employmentA debtor must communicate with a debt collector if they are contacted at their place of employment.* False TrueIn 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 debt Notify the collector and the creditor in writing that the debt is disputed and the debtor wants the matter to go to court Both of these None of theseA collector may only speak with a debtor's neighbour or relative if the collector has made 3 unsuccessful attempts to contact the debtor.* False TrueA reasonable amount of pressure can be applied to family and friends of debtors in order to have the debtor contact the collector.* True FalseUnless requested by the employer, a collector may not contact a debtor's employer on a BC statutory holiday.* False TrueUnless there is a history of dishonoured payments, a debtor must be allowed to make a debt payment using a cheque.* True FalseUnless a family member or friend of a debtor is a co-borrower or guarantor, they are not responsible for paying for the debt.* False TrueA debtor's spouse is equally liable for a debt even if she or he is not named in the credit agreement.* False TrueIf a person informs a collector that they are not the debtor, the collector must:* Give up on collecting the debt All of these options Stop contacting the individual Make reasonable efforts to ensure that the person is the debtor before contacting the person again None of these optionsA collector may not state or threaten the possibility of a legal proceeding against a debtor if:* The collector does not already have the creditor's written authority The debtor is unemployed or otherwise unable to pay the debt The debtor has proven to be trustworthyA collector may not use an alias unless the alias appears on their BC collector licence issued by Consumer Protection BC.* True FalseAt the beginning of a communication with a debtor, the collector must clearly identify themself to a debtor as a third-party collection agent.* False TrueNon payment of a contractual debt is a criminal offence and may result in 6 months imprisonment or a $10,000 fine.* True FalseA 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 FalseIf a collector engages in a prohibited collection practice, can the debtor sue for any damages or loss that result from the prohibited practice?* Yes NoWho can a debtor sue if the debtor has suffered loss or damage due to a prohibited collection practice?* Both The collector The collection agentA 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 arrears Only on the amount of the debt that is in arrears Both of those Neither of theseA 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?* No YesYou 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?* No YesIf a debtor expresses concern about the number of calls they are receiving from a collector, the collector:* May continue to make calls at the same frequency because there is nothing wrong with the number of calls they’re making to the debtor Must ensure the frequency of calls is not excessive or unreasonable in the circumstances May increase the frequency of calls because the debtor is not cooperatingBC's debt collection legislation applies to transactions, matters or things, regardless of whether they involve a consumer and or business.* True FalseThe prohibited debt collection practices in the legislation are not applicable to third-party collection agents, creditors collecting their own debts or buyers of third party debts.* 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.* True FalseDebtors are not obligated to communicate with debt collectors if they are contacted at their places of employment.* 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.* False TrueCan a collector attempt to collect a debt if the collector does not know who the original creditor was?* No YesPrior 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 credit limit on the account The employment status of the debtor The name of the original creditor The time allowed the debtor to pay the debtA 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?* No YesA 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?* Yes NoAfter 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?* No YesS.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 1 time 3 times maximum Only 2 times 0 times As many times as requiredA 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?* Yes NoAfter two way communication is established with a debtor, when must the collector identify themselves?* Immediately Never unless the collector wants to Sometime before the end of the communication Before demanding payment of the debt involved Only the identity of the collection agency is requiredBefore 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)?* Given notice to the debtor that the collector intends to bring proceedings to collect the debt Sent a similar request first to the registered corporate office of the employer Reviewed the file with a lawyer Obtained the employer's legal name and mailing address None of these thingsA 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?* No YesIf 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?* Yes NoUnder the Debt Collection And Repayment Regulation, what must an employee of a licensed collection agency do if the employee receives money from a debtor?* 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 received None of the 3 actions, Calculate their commission on the payment and advise their employer accordingly All of the 3 actionsA 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?* No YesA 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?* No YesWhat penalties would collectors who contravene any of the legislative provisions regulating debt collection practices expose themselves to?* Convictions of an offence All of these Licence cancellations Administrative monetary penalties Legal proceedings for damages or loss Licence suspensionsA debt is on its third assignment with a new collection agency. The previous agencies did not properly document accounting of the debt. The new agency cannot account for the increase in the debt since it first became due. What can it do?* Not attempt to collect the debt Contact the previous agencies for enough information to prepare the accounting Contact the creditor and obtain sufficient information to prepare the accounting Any of these actionsA 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?* Yes NoA collector who was previously informed by the debtor to only communicate with the debtor in writing, wants to call the debtor and explain that legal proceeding in court may commence. Can the collector call the debtor?* No YesCAPTCHA TweetShareSharePin0 Shares
