CARS Cert
The repossession agent should never disclose any information about the debtor or the repossession to any name not on the repossession assignment because:
. Family members might tell the debtor the agent is looking for them, Neighbors do not need to know the debtor's business, and Everyone except the debtor and co-debtor is a third-party.
The repossession agent should not wear a badge during the repossession process because:
A debtor could falsely believe that the agent is a police officer, The agent could be charged with impersonating a police officer, A third-party may willfully give information about the debtor out of fear of arrest, and Repossession is a civil matter not a criminal matter and should not indicate otherwise.
If the debtor redeems their vehicle, the office staff should:
Ask the debtor for a picture ID, make a copy of it, get the necessary forms signed and send a staff member to retrieve the car and bring it to the debtor.
Generally, a police officer does not have the ________________ to make someone give up collateral for repossession.
Authority
In the auto repossession business, you should always treat others ________________ you want to be treated.
Better than
The self-help repossession process, in and of itself, should not involve any form of ____________.
Breach of the Peace, Collecting money, and Violence
The repossession business is a ____________ matter.
Civil
Be sure to dress ______________________________.
Clean and neatly
Failure to successfully repossess a vehicle when in contact with the debtor can sometimes be the result of poor _______________________ skills, behavior that was not courteous, or a lack of repossession industry knowledge.
Communication
All service providers should have in place a procedure for_____________.
Complaint handling, Disaster Preparedness and Weapons
If a debtor is a military member, the agent should
Contact the base's military police and ask their procedure for repossessions
If the debtor lives on an Indian Reservation, the agent should:
Contact the tribal authority to find out the procedures they require and follow them exactly.
If you find yourself in a situation where police contact is unavoidable, you should try to establish an atmosphere of _______________________.
Cooperation
Which of the following markets has the Consumer Financial Protection Bureau issued a larger participant rule for?
Debt collection market
How you present yourself in __________, body language, and tone of voice will set the scene in dealing with the debtor.
Dress
Ideally all owners will conduct background checks on their staff in accordance with the ____________________.
EEOC, ADA and FCRA
Unsuccessful repossession can be the result of a lack of professionalism and industry field ___________________, or insensitivity to the debtor's personal and financial situation.
Experience
A company that buys retail installment sales contracts does not need to obtain a license in any state.
False
If the debtor tells the agent they have filed bankruptcy, the agent should ask:
For the lawyer's name and phone number, For a case number, and What chapter was filed
If the debtor comes to collect their personal property, staff should:
Have the debtor sign the necessary forms confirming receipt of all their personals then return their personal property after obtaining a copy of a picture ID.
Telecommunications Relay Service (TRS) is a telephone service that allows persons with ________________ to place and receive telephone calls.
Hearing or speech disabilities
The CFPB can start an investigation by:
Issuing a Civil Investigative Demand (CID) and Filing a civil action in court
In order to calm a situation, you should ______________ your voice if the debtor is shouting. This causes the debtor to speak more quietly so they can hear what you are saying.
Lower
All _______should be out of sight or locked away via a locked drawer, cabinet, password-protected computer, etc.
NPPI
Wi-Fi hotspots are ___________ and should not be used with a laptop which contains NPPI.
Not secure connections
A state regulatory agency can require a motor vehicle dealer and/or finance company to:
Obtain a licence, Deliver annual reports and Submit to regular examination
The number one rule in dealing with a debtor is to never have any _________________________ with them.
Physical contact
If a background check is done on each staff member, the resulting paperwork should be ______________.
Placed in their personnel file
If you are working on two files and there are eight files on your desk, the additional files should be____________.
Placed in your drawer
When talking to a debtor, never use ___________________.
Profanity
The longer you are in business, the more your ________________________ will be recorded in the minds of your clients.
Professionalism
When cleaning out a repossessed vehicle, you should:
Remove all personal property, inventory the property, place it in a bag or box, label it with debtor's information and secure it in a safe dry place.
Auto repossession companies are ___________for lending institutions and are governed under the GLBA.
Representatives and service providers
Never go into a debtor's ________________.
Residence
In the repossession business, you should carry yourself with _________ and pay attention to the way you look and dress. Doing so will cause others to respect you and pay attention to you.
Respect
Treat the debtor with the utmost ________________, regardless of how they treat you.
Respect
As a field agent, familiarize yourself with the _____________ of each town, city and county in order to have a good working relationship with the police departments.
Rules
All Nonpublic Personal Information (NPPI) must be ___________without exception.
Shredded
Once you repossess a vehicle you should immediately:
Take it to the storage lot and secure it behind a locked fence.
The repossession agent should dress neatly when conducting business because:
The agent is representing the lienholder in the field.
The repossession assignment should include the color of the car to allow:
The agent to ride through an apartment complex looking for the color rather than the type of car.
A copy of the contract should include:
The amount financed, The finance charge, The total number of payments, and The total sales price of the collateral
If the officer chooses to make a report, you should request, for safety reasons, that they use ________________________ address.
The repossession business
Never disclose NPPI information in front of ___________ parties, even if the debtor tells you it is okay.
Third
A Retail Installment Contract documents a consumer credit sale between the dealer and the buyer(s).
True
Both the Consumer Financial Protection Bureau and the Federal Trade Commission regulate payday lenders.
True
Communication that creates a reasonable expectation in one person that the other is willing to enter into a contract on certain terms can be an offer.
True
A state may define certain acts as aggravated batteries and punish the act as a felony.
true
A tort is a civil wrong that causes someone to suffer loss or harm which may result in liability for the person who committed the act.
true
Which of the following populations is the Consumer Financial Protection Bureau most concerned?
Americans aged 62 or older
Which of the following agencies does not regulate banks?
The Federal Trade Commission
Most states permit some form of self-help repossession.
True
The Servicemembers Civil Relief Act protects servicemembers, their dependents and persons who may be primarily or secondarily liable on a contract with a servicemember from financial hardship.
True
An assault is an attempt to commit a battery.
true
Extreme and outrageous conduct that transcends all bounds of decency would not be subject to civil action.
true
Only tangible personal property and intangibles, like a promissory note, are subject to conversion.
true
What one document should accompany every repossession assignment you accept?
A hold harmless
The repossession agent should always keep the wrecker locked and windows up when exiting it to avoid:
Anyone opening the wrecker and removing items such as repossession orders containing NPPI, Anyone gaining access and stealing the wrecker, and Anyone stealing expensive equipment in the wrecker.
A person generally does not owe a duty of care to another person.
False
A secured party may take possession of a vehicle without the judicial process, even if it proceeds and breaches the peace.
False
All states specifically restrict the use of a payment protection device, such as GPS tracking devices and starter interrupt devices.
False
Consideration is what each party gives to the other as the agreed price for the other's promises.
False
Failing to answer a complaint filed with the Consumer Financial Protection Bureau will not increase the likelihood of an investigation being initiated.
False
Following a state regulation is optional.
False
If a security interest attaches, it is not enforceable against a debtor.
False
If there is a surplus of funds after the sale of a repossessed vehicle, the secured party can keep the surplus.
False
It is never important to verify a secured party's lien has been properly perfected.
False
It is not important to review the terms of the Retail Installment Contract or Loan Agreement before attempting to repossess a vehicle.
False
Section 5 of the Federal Trade Commission Act prohibits Unfair or Deceptive Acts or Practices in or affecting commerce
False
The CFPB is prohibited from writing rules that would define what is considered an "abusive act or practice."
False
The CFPB stated it doesn't care if supervised banks and nonbanks have a process for managing the risk of service provider relationships, nor to take steps to prevent risks to consumers.
False
The Consumer Financial Protection Bureau and the Federal Trade Commission enforce some of the same laws, but they do not supervise any of the same entities.
False
The Consumer Financial Protection Bureau has not issued any rules stating which larger participants of a market it will supervise.
False
The Consumer Financial Protection Bureau must issue a rule or order to regulate a market of non-bank entities.
False
The Consumer Financial Protection Bureau was primarily established to prevent deceptive, fraudulent, and unfair business practices.
False
The Federal Trade Commission can conduct periodic examinations of the entities it supervises.
False
The Federal Trade Commission ensures that consumer complaints are addressed by the company.
False
The laws that pertain to a Retail Installment Contract and a Loan Agreement are always identical.
False
The legal standards for unfairness and deceptive are dependent on each other, and an act or practice must always be both unfair and deceptive.
False
The only purpose of the Consumer Financial Protection Bureau is to protect consumers from unfair, deceptive or abusive practices.
False
The secured party is not required to send any notices out to the debtor after it has repossessed the consumer's vehicle or before selling the vehicle.
False
The secured party may always file a lawsuit against the debtor to collect on the amount owed to the secured party after the sale of the vehicle (the "deficiency" amount).
False
There are only three elements required for an agreement to be regarded as a contract: offer, acceptance and a meeting of the minds.
False
When collecting on a consumer's debt, a debt collector is free to speak with anyone about the details of a consumer's debt.
False
You can pretend to be someone else or make up a reason to buy or obtain a debtor's personal phone records provided you are skip-tracing the debtor.
False
The office staff should put a truncated social security number on the assignment form because:
If the driver's paperwork or computer were to be stolen a third party would not have access to Non-Public Personal Information (NPPI).
If subject to the CFPB supervisory authority, the CFPB can:
Require a person to submit reports and Conduct periodic risk-based examinations
The Credit Application is important in locating the debtor because it contains:
Residence address, landlord information, credit reference and Place of employment and employment info.
Which of the following agencies specifically exempts some motor vehicle dealers or lessors from its supervisory authority?
The Consumer Financial Protection Bureau
Which of the following agencies can issue a Civil Investigative Demand?
The Consumer Financial Protection Bureau and The Federal Trade Commission
Which of the following agencies educates consumers?
The Consumer Financial Protection Bureau and The Federal Trade Commission
Which of the following agencies makes it a priority to assist financially distressed consumers?
The Consumer Financial Protection Bureau and The Federal Trade Commission
A motor vehicle dealer may or may not need a license, depending on state law.
True
Article 9 of the Uniform Commercial Code is the primary statute that controls the creation and perfection of security interests.
True
As an automotive repossession company, you may be considered a "service provider" and a "supervised service provider" if you are providing a material service to a covered person, such as a supervised bank or auto finance company when you are hired to repossess a debtor's vehicle.
True
Generally, every aspect of the sale of a vehicle after its repossession must be commercially reasonable.
True
If properly drafted, a retail installment sales contract will take a security interest in the vehicle being sold.
True
In a Retail Installment Contract and Loan Agreement, a consumer may grant a security interest in the property being purchased to the secured party.
True
In a direct vehicle loan transaction, a bank, credit union or finance company will loan money directly to a consumer to buy a vehicle.
True
It is important that you and your repossession agents do not disclose any NPI about a consumer to a nonaffiliated third party.
True
Some of the additional terms and conditions of a Retail Installment Contract include default provisions, what happens if the consumer pays late or breaks a promise (remedies) and the secured party's ability to repossess a vehicle if the consumer defaults.
True
Some states may require that repossession agents are properly licensed and that repossession be promptly reported to state police or other agencies.
True
State regulators can provide guidance in writing and by telephone
True
State regulators work for the executive branch of state government.
True
The "Unfair or Deceptive Acts or Practices" is commonly called "UDAP"
True
The CFPB issued two bulletins on service providers that describe its expectations of supervised banks and nonbanks to monitor their business relationships with service providers in a way that ensures compliance with federal law.
True
The Consumer Financial Protection Bureau (CFPB) was authorized by Congress to take action to prevent a covered person or service provider from committing or engaging in Unfair, Deceptive, or Abusive Acts or Practices in connection with any transaction with a consumer for a consumer financial product or service.
True
The Consumer Financial Protection Bureau can enforce the Truth in Lending Act.
True
The Consumer Financial Protection Bureau may investigate an entity as a result of receiving consumer complaints.
True
The Consumer Financial Protection Bureau regulates buy-here, pay-here dealers.
True
The Consumer Financial Protection Bureau will advise an entity of examination findings in the examination report.
True
The Director of the Consumer Financial Protection Bureau may be removed by the President for any cause.
True
The Fair Debt Collection Practices Act or FDCPA applies to debt collectors who collect debts on behalf of others, and to a debt owner who collects using a different name or obtains the debt after the debt is already in default.
True
The Federal Trade Commission can impose a civil penalty for violating the laws and rules it enforces.
True
The Gramm Leach Bliley Act governs the treatment of Nonpublic Personal Information (NPPI) about consumers by financial institutions.
True
The Telephone Consumer Protection Act regulates contacting the debtor via a text message.
True
The Uniform Commercial Code has specific procedures that must be followed if the debtor wants to turn the vehicle over to the secured party.
True
The practice of "skip-tracing" or attempting to locate a debtor may be regulated as a collection activity in a state.
True
The supervised bank, nonbank and repossession company, as a service provider to those entities, could all be held responsible for violations of the federal consumer financial laws.
True
Two of the main types of contracts used to finance the purchase of a vehicle are a Retail Installment Contract and a Loan Agreement.
True
When a debtor is in default of their contract, some states require that a Right to Cure or Right to Reinstate notice be sent to the debtor and/or any cosigners.
True
If a repossession agent is in the middle of an assignment, and the debtor comes outside and chases the agent around the yard while telling them they may not take the vehicle, this is a Breach of the Peace because:
Unless the agent can remove the vehicle peacefully, it is considered a Breach of the Peace unless you live in a state with a repo law that states the vehicle is considered repossessed when touched by a wrecker, Any disturbance can be considered a Breach of the Peace, and It is better to leave the vehicle and come back for it at a less confrontational time.
The security agreement contains language that includes
Written consent to repossess in the event of a default on the RISC or loan
The repossession assignment form should include the following:
Year, make model and Vin number.
The agent should not carry a gun on a repossession because:
You might lose your favorite gun, All repossession insurance carriers warn against having a gun on your person or in your vehicle during the repossession process, The debtor might take the gun and shoot themselves, and Someone might steal your gun.
The CFPB can recover which of the following civil money penalties:
a. $5,639 for each day of any violation b. $28,195 for each day of a reckless violation c. $1,127,799 for each day of a knowing violation
Which of the following CFPB or FTC resources can be viewed to identify areas in which either agency is focusing attention?
a. Enforcement actions b. Highlights c. Staff speeches
The CFPB can receive a consumer complaint from:
a. The CFPB website b. Telephone c. Through the mail d. From other federal agencies
A battery against a person must be an intentional act.
false
Even if a debtor has given their consent to enter any premises where the collateral may be located, the recovery company and agent may be charged with trespass.
false
If a recovery agent has entered the debtor's property and the debtor asks the agent to leave or they will call the police, the agent should retreat and leave the premises.
false
Kidnapping charges can only be brought if the person is taken out of their state of residence.
false
When a person's conduct falls short of the level of standard of care owed to another person, no breach of any duty has occurred.
false
If a recovery agent makes insulting or taunting telephone calls or texts to a debtor, the agent may be charged with harassment.
true
Some persons, such as professionals, are held to a standard of conduct that is different from that of the ordinary person.
true
Trespass/invasion of someone's real property may be made by a person or an object.
true
