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 AgencyDo debt collection agency employees performing collection functions from or into BC need a BC collector licence?* No YesWhat is the name of the legislation that governs debt collection activity in British Columbia?* Business Practices and Consumer Protection Act Business Corporation Act Debtors Assistance Act Bankruptcy and Insolvency ActThe 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.* 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.* False TrueA 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 callA debtor must communicate with a debt collector if they are contacted at their place of employment.* True FalseA debtor can compel a collection agency to contact them in writing only if:* Neither of these The debtor submits the demand by email or letter and provides a mailing or emailing address where the debtor can be reached. Both of these The debtor provides a mailing address for the collector to useIt 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 TrueA collector can communicate with a family member or relative of a debtor if:* None of these The debtor authorized the collector to do so The debtor is unemployed All of thse The debtor is unavailableExcept 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.* False TrueFor a credit agreement that is silent about interest charges on overdue amounts, a debtor is only responsible to pay:* Simple interest Interested applied on the debt by the collector Interest applied on the debt by the creditor Court-ordered interest Compound interestParents of a debtor may be contacted about a debt if:* Both of these The debtor lives with them Neither of these They guaranteed the debt which is in defaultA collector may be required to show evidence that they believed the person they contacted to pay a debt was actually the debtor.* False TrueIf a person informs a collector that they are not the debtor, the collector must:* Make reasonable efforts to ensure that the person is the debtor before contacting the person again Stop contacting the individual All of these options None of these options Give up on collecting the debtWritten notice must be provided by a collector to a debtor before starting a legal proceeding to recover that debt.* 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 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.* False TrueIt is acceptable for a collector to identify themselves as someone other than a collector when trying to locate a 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 A licence is still required to collect the debt since the agent is not the original creditor None of these The collection agent does not require a licence to collect the debt since it now owns the debtThe complete assignment or sale of a debt requires any resulting collection activity to be performed only by a licensed collection agent and collector.* False TrueTo 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.* True FalseA 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 regardless of the number of late payments or when they are made Only once for each late payment no matter when the late payment is made Never Once each month that a payment is missedA debtor told a collector that their mother may help pay a debt. Can the collector call the mother to pursue payment?* 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 informs you that they are disputing the debt you are calling about, you:* Can demand to see the evidence that they have Can still contact them about the debt until they actually go to court Must stop trying to collect the debt if the debtor informs you and the creditor in writing of the disputeIf a debtor expresses concern about the number of calls they are receiving from a collector, the collector:* May increase the frequency of calls because the debtor is not cooperating Must ensure the frequency of calls is not excessive or unreasonable in the circumstances May continue to make calls at the same frequency because there is nothing wrong with the number of calls they’re making to the debtorParents or family of a debtor are responsible for the debt if:* the debtor is acting irresponsibly 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 debtWhen 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 acting illegally The debtor can be sued for not answering collection letters The debtor is ignoring the fact that they have not paid their bill and the collector should start calling again The collector cannot begin to call the debtor againOn a debtor’s credit report, a past-due account will:* Be visible for a set time period which re-starts each time the debt is transferred to a new collection agency Be visible for a set time period that starts when the account becomes overdue Remain forever, until the debt is paidThe 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.* True FalseA collector must stop communicating with a debtor if the debtor notifies the collector to communicate with the debtor's lawyer and provides an address for the lawyer.* True FalseWho 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 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?* No YesA 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 debtor The collectorA 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 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 NoA 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?* One Two None ThreeWhat 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 collector is prohibited from bringing the proceeding All of these The 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?* 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?* No YesThe 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.* False TrueA 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?* Yes NoA 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?* Yes NoA 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?* 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:* Unlawful and therefore not permitted Too high, maximum should be the bank prime rate Reasonable and permitted OK if the rate is the industry norm for that type of debtA 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 YesWhat collection cost(s) can a collector lawfully attempt to recover from a debtor?* Default costs set out in the lending agreement Costs of more than $50 Court-ordered costs All of these costs Costs incurred collecting debts in arrears of more than 2 years None of these costsA 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 NoCAPTCHA TweetShareSharePin0 Shares
