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?* Debtors Assistance Act Business Practices and Consumer Protection Act Bankruptcy and Insolvency Act Business Corporation 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.* True FalseThreatening to publish a debtor's failure to pay a debt, in a manner generally accessible to the public, is acceptable under the Act.* True FalseA debt collector must notify a debtor in writing prior to:* Going to their place of employment Making the first collection call Freezing a debtor's bank accountAn acceptable reason to contact debtors at their place of employment is to:* Obtain a debtor's residential contact information Confirm a debtor's income Determine the frequency of the debtor's paydays None 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 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 theseExcept 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 TrueUnless requested by the employer, a collector may not contact a debtor's employer on a BC statutory holiday.* False TrueA collector cannot collect an amount that is more than the amount of the debt owed to the creditor.* True FalseA debtor's spouse is equally liable for a debt even if she or he is not named in the credit agreement.* True FalseA collector may be required to show evidence that they believed the person they contacted to pay a debt was actually the debtor.* True FalseStating the collector's intent to bring or continue a legal proceeding for which no lawful authority exists would be considered:* Too much pressure for a first-time debtor A prohibited collection practice and possibly a deceptive trade practice Acceptable practice for a debtor who is refusing to payA 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.* True FalseNon payment of a contractual debt is a criminal offence and may result in 6 months imprisonment or a $10,000 fine.* 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.* True FalseOnce a collector has confirmed that they are communicating with the debtor, the collector must immediately identify themselves as a collector.* False TrueWhen 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.* True FalseWhen a collection agent purchases a debt:* The collection agent does not require a licence to collect the debt since it now owns the 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 theseIf a collector engages in a prohibited collection practice, can the debtor sue for any damages or loss that result from the prohibited practice?* No YesA collector is assigned a purchased debt to collect. Must the collector know and inform the debtor of the name of the original creditor?* No YesPreviously, a debtor had instructed a collector to contact them in writing only. However, the debtor has not replied to any of the written communications sent by the collector. In this case, can the collector begin telephoning the debtor again?* Yes NoRemembrance Day falls on a Sunday. When can a collector telephone a debtor?* None of these options Only between 11 a.m. and 9 p.m. Only between 1 p.m. and 5 p.m. Only after 11 a.m. until 5 p.m.If 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 disputeIf a collector contacts a person about a debt they owe and the person says they are not the debtor, the collector:* Can keep calling until they are convinced the person is not the debtor Must stop contacting the person and double-check the information they have Can try to convince the person that they do indeed owe the debtIf 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 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 circumstancesWhen a collection agency begins to collect a debt:* The time limitation for collecting on the debt starts over 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 remains unchanged and is still calculated from the date the debt first became past-dueWhen 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 againIf they are located outside of BC, debt collection employees are not required to be licensed in BC if they are only calling into BC.* False TrueA 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 FalseCollection calls can be made on BC Statutory holidays anytime during the day until 9pm each evening.* False TrueWho does NOT need a debt collection licence issued by Consumer Protection BC?* Collection agencies located outside of BC collecting outside BC Collection agencies located outside of BC collecting into BC Collection agencies located in BC Debt buyers collecting their purchased debtsA 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 has a debt to collect and wants to confirm an old home address in the collection file for the debtor to ensure it is still correct. Can they call the debtor at work to do so?* Yes NoS.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 As many times as required Only 2 times 3 times maximum 0 timesDespite 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 amountWhat could happen if a collector does not notify a debtor that the collector intends to sue the debtor for recovery of a debt?* All of these The proceeding could fail in court The collector is prohibited from bringing the proceeding The debtor could use the failure to provide the required notice as a defense to the actionMust 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?* No YesA collector who fails to provide a debtor with written notice that the collector intends to bring proceedings to collect a debt can be charged with an offence under the Act.* False TrueCould 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 NoThe 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.* True FalseCan 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?* Yes NoA 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 No YesThe 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 OK if the rate is the industry norm for that type of debt Reasonable and permittedA 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?* Yes NoA 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?* Any of these actions Contact the creditor and obtain sufficient information to prepare the accounting Not attempt to collect the debt Contact the previous agencies for enough information to prepare the accountingA 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?* Yes NoDebtors 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 theseCAPTCHA TweetShareSharePin0 Shares
