Fair Debt Collection Practices Act Final Assessment

Which action must a debt collector perform if a collector is trying to collect more than one debt from an individual consumer?

A. Apply any payment to the disputed debt first, and then to the one the consumer admits owing B. Apply any payment made to the debt the consumer selects C. Combine the debts into one large debt and apply any payments to the total amount owed D. Collect only one debt at a time

Joan is a debt collector with ABC Collection Agency. As a debt collector, Joan may not engage in unfair practices when trying to collect a debt. For example, she may not:

A. Contact the consumer by postcard or deposit a postdated check early B. Notify debtors about their ability to challenge the validity of a debt and to provide other basic information C. Take or threaten to take property when it can be done legally D. Send the consumer a written ''validation notice'' indicating how much money is owed within five days after first contacting the debtor

Which option is correct regarding action a debt collector may perform to try to collect a debt?

A. Contact the debtor before 8 in the morning or after 9 at night B. Contact the debtor at work even if they are told (orally or in writing) not to C. Contact the debtor directly if the debtor is represented by counsel D. Contact the debtor on holidays or weekends unless informed that such times are inconvenient

What is the purpose of the Fair Debt Collection Practices Act (FDCPA)?

A. It is a law passed to protect creditors in collecting debts B. It is a law passed to protect consumers from abusive debt collectors C. It is a law passed to ensure that consumers validate a debt D. It is a law passed to protect banks from third party debt collectors

Which debt is covered under the Fair Debt Collection Practices Act (FDCPA)?

A. John's past due auto loan B. Sam's past due loan to purchase a tractor for his farming business C. Sally's past due loan to open a beauty shop in her basement D. Mike's past due loan to purchase office equipment for his general partnership

What type of action is allowable under the Fair Debt Collection Practices Act (FDCPA)?

A. Leaving a voice mail about the debt with co-workers or other family B. Using actions or words that threaten and embarrass the debtor C. Threatening legal action when there is no intent to take legal action D. The collector identifying itself as a debt collector

Royal Bank has its branch employees contact customers to attempt to collect past due amounts owed due to checking account overdrafts. Are these employees subject to the Fair Debt Collection Practices Act (FDCPA)?

A. No, checking account overdrafts are not loans subject to the FDCPA B. No, the FDCPA does not apply to the original creditor, but state law may apply C. Yes, the employees are collecting a debt, so anyone acting as a collector must follow the FDCPA D. Yes, but only if the employees are also classified as collectors. The law does not apply to tellers or CSRs

Allan, a debt collector with ABC Collection Agency, called a customer and told her that his company will have her arrested if the debt was not brought current by the next payment due date. Is that allowed?

A. No, if such action will not or cannot be taken the representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person violates the Fair Debt Collection Practices Act (FDCPA) B. Yes, if a person does not pay, he or she has committed fraud and should be arrested C. Yes, if state law establishes ''debtors prison'' D. No, a collector may not inform the customer about this action by phone, but may threaten arrest or imprisonment as long as the debt collector notifies the individual in writing of this action

Are all debts subject to the Fair Debt Collection Practices Act (FDCPA)?

A. No, only joint debts owned by a husband and wife B. Yes, if the debt is past due, the law applies C. No, only debts that are primarily for personal, family or household purposes D. No, it only applies to commercial debt

Caleb, a long time customer, provided his mortgage servicer with a cease communications request. If the request provided is in accordance with the FDCPA, the servicer may take which action without violating the FDCPA?

A. Provide a delinquency notice if the borrower is in bankruptcy B. Provide a periodic statement in accordance with the servicer's procedures C. Provide loss mitigation information if no loss mitigation option is available D. The servicer may harass the borrower or make threats concerning the debt

If a debt collector violates the law, which action may a debtor take?

A. Sue the collector in a state or federal court within one year from the date the law was violated B. If the debtor owes the amount being collected, the debtor has no rights C. Sue the debtor individually only (class action suits not allowed under the Fair Debt Collection Practices Act [FDCPA]) D. Refuse to pay the debt

Which entity has rulemaking authority regarding debt collectors' conduct under the Fair Debt Collection Practices Act (FDCPA)?

A. The Office of the Comptroller of the Currency (OCC) B. The Consumer Financial Protection Bureau (Bureau) C. The Federal Deposit Insurance Corporation (FDIC) D. The Federal Trade Commission (FTC)

Which is the correct definition of "debt collector" under the Fair Debt Collection Practices Act (FDCPA)?

A. The original creditor collecting its own debt B. A debt collector is anybody who regularly collects debts owed to another C. Strongarm Debt Collection Agency but not Pete Peterson, an attorney collecting debts for another D. Any entity or person collecting a debt

What does the Fair Debt Collection Practices Act (FDCPA) give debtors the right to do?

A. Verbally demand that the third-party debt collector terminate all further communications B. Send a letter to the debt collector to demand termination of all future collection efforts, including the ability of the debt collector to sue to collect the debt C. Notify the debt collector in writing to cease contact D. Refuse to pay any legitimate debt

A debt collector contacted a debtor's employer asking for that person's address and phone number. Is this allowed?

A. Yes, a debt collector may contact a third-party for location information (consumer's place of abode and telephone number at such place) B. No, contacting a third party violates the Fair Debt Collection Practices Act (FDCPA) unless the debtor has given express written consent C. No, only a request for information other than ''location information'' is allowed D. Yes, as long as the collection agency informs the third party about the nature of the debt and the amount owed