Cavalry Portfolio Services - FDCPA Exam
FDCPA Exam
- 1.
How many times can a debt collector contact a third party to request location information regarding the consumer?
- A.
0
- B.
1
- C.
2
- D.
3
Correct Answer
B. 1Explanation
A debt collector can contact a third party only once to request location information regarding the consumer. This is in accordance with the Fair Debt Collection Practices Act (FDCPA), which limits the number of times a debt collector can contact third parties in order to protect the consumer's privacy.Rate this question:
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- 2.
What information can you request from a third party?
- A.
The consumer's home address, home phone number and place of employment.
- B.
The consumer's home phone, work phone number and place of employment.
- C.
The consumer's home address, cell phone number and place of employment.
- D.
The consumer's home phone number, work phone number and cell phone number.
Correct Answer
A. The consumer's home address, home phone number and place of employment.Explanation
You can request the consumer's home address, home phone number, and place of employment from a third party.Rate this question:
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- 3.
Which of the following are right parties with whom you can always discuss the debt?
- A.
The consumer’s parents.
- B.
The consumer’s employer.
- C.
The consumer’s accountant.
- D.
The executor of the estate of a deceased consumer.
Correct Answer
D. The executor of the estate of a deceased consumer.Explanation
You can always discuss the debt with the executor of the estate of a deceased consumer because they are responsible for managing the deceased consumer's financial affairs, including any outstanding debts. They have the authority to make decisions regarding the debt and can provide information and guidance on how to handle it.Rate this question:
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- 4.
The FDCPA allows debt collectors to contact a consumer:
- A.
Between 8:00 a.m. and 9:00 p.m. in the collector’s time zone.
- B.
Between 8:00 a.m. and 9:00 p.m. in the consumer’s time zone.
- C.
Between 9:00 a.m. and 8:00 p.m. in the consumer’s time zone.
- D.
Between 9:00 a.m. and 8:00 p.m. in the collector’s time zone.
Correct Answer
B. Between 8:00 a.m. and 9:00 p.m. in the consumer’s time zone.Explanation
The FDCPA (Fair Debt Collection Practices Act) allows debt collectors to contact a consumer between 8:00 a.m. and 9:00 p.m. in the consumer's time zone. This means that debt collectors cannot contact consumers outside of this time frame, ensuring that they are not disturbed during early morning or late night hours. It also ensures that debt collectors respect the consumer's local time zone, preventing them from contacting consumers at inappropriate times based on their own time zone.Rate this question:
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- 5.
A debt collector may not:
- A.
Use an alias when attempting to collect a debt.
- B.
Use a post card to attempt to collect a debt.
- C.
Disclose the debt to a consumer’s attorney.
- D.
Contact the consumer during the validation period.
Correct Answer
B. Use a post card to attempt to collect a debt.Explanation
Using a postcard to attempt to collect a debt is not allowed by a debt collector. This is because postcards are not secure and can be easily viewed by anyone handling the mail, which could potentially violate the consumer's privacy and confidentiality. Debt collectors are required to follow certain guidelines and regulations to protect consumers' rights, and using a postcard is considered unprofessional and risky in terms of maintaining privacy.Rate this question:
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- 6.
A debt collector may call a consumer as many times in a day as it takes to get a hold of the consumer so long as the debt collector does not leave a message.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false. According to the Fair Debt Collection Practices Act (FDCPA), debt collectors are prohibited from engaging in harassing or abusive behavior, which includes excessive phone calls. They are generally not allowed to call a consumer repeatedly in a day with the intent to annoy, abuse, or harass them. Additionally, debt collectors are required to identify themselves and provide certain information when leaving a message for the consumer.Rate this question:
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- 7.
A debt collector may imply he is an attorney if the account will be forwarded to an attorney for collection.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Debt collectors are prohibited from implying that they are attorneys or that a legal action will be taken against the debtor unless it is actually true. The Fair Debt Collection Practices Act (FDCPA) strictly regulates the behavior of debt collectors and prohibits any false or misleading statements. Therefore, it is false that a debt collector may imply he is an attorney if the account will be forwarded to an attorney for collection.Rate this question:
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- 8.
A consumer can dispute the debt after the Validation Period has expired.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
After the Validation Period has expired, a consumer can still dispute the debt. The Validation Period refers to the timeframe in which a consumer can request verification of a debt from a debt collector. Once this period has passed, it does not mean that the consumer loses their right to dispute the debt. They can still dispute it, but they may have to follow a different process or face additional challenges in resolving the dispute.Rate this question:
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- 9.
An individual debt collector can be personally sued under the FDCPA
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Under the Fair Debt Collection Practices Act (FDCPA), an individual debt collector can be personally sued for violations of the act. The FDCPA provides guidelines and regulations for debt collectors, and if they fail to comply with these rules, they can face legal consequences. This means that if a debt collector engages in abusive, deceptive, or unfair practices, they can be held personally liable for their actions. Therefore, the statement "An individual debt collector can be personally sued under the FDCPA" is true.Rate this question:
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- 10.
When communicating with a consumer, a debt collector:
- A.
Can be rude to a consumer if the consumer is rude first.
- B.
Can demand immediate payment during the Validation Period.
- C.
Can imply that the consumer will be sued if it will influence the consumer to pay.
- D.
Can contact the consumer at work if it is not inconvenient for the consumer.
Correct Answer
D. Can contact the consumer at work if it is not inconvenient for the consumer.Explanation
A debt collector can contact a consumer at their workplace as long as it is not inconvenient for the consumer. This means that if the consumer has indicated that they prefer not to be contacted at work or if their employer prohibits such calls, the debt collector should respect their wishes. However, if the consumer has not expressed any inconvenience and it is permissible to contact them at work, the debt collector may do so.Rate this question:
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- 11.
When communicating with a consumer, a debt collector:
- A.
Must disclose that the communication is from a debt collector.
- B.
Must only communicate with the consumer once unless the debt collector believes the consumer has updated information.
- C.
Must communicate with the consumer during business hours.
- D.
Must not disclose his employer unless specifically requested.
Correct Answer
A. Must disclose that the communication is from a debt collector.Explanation
A debt collector is required to disclose that the communication is from a debt collector when communicating with a consumer. This is to ensure transparency and to inform the consumer about the purpose of the communication. It helps the consumer to be aware that they are being contacted regarding a debt and allows them to take appropriate actions or seek necessary assistance.Rate this question:
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- 12.
The FDCPA is:
- A.
A random set of letters.
- B.
A federal law governing the ethical collection of past due debts.
- C.
The federal government agency enforcing debt collection laws.
- D.
A trade association for credit and collection professionals.
Correct Answer
B. A federal law governing the ethical collection of past due debts.Explanation
The correct answer is "A federal law governing the ethical collection of past due debts." This is because the FDCPA (Fair Debt Collection Practices Act) is indeed a federal law that regulates how debt collectors can interact with consumers when collecting debts. It sets guidelines for fair and ethical debt collection practices, such as prohibiting harassment, false representations, and unfair practices. The FDCPA aims to protect consumers from abusive and deceptive debt collection practices.Rate this question:
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- 13.
A written refusal to pay a debt:
- A.
Requires no response by a debt collector.
- B.
Requires a debt collector to communicate with a consumer in writing.
- C.
Requires a debt collector to communicate with a consumer by telephone.
- D.
Requires a debt collector to cease communicating with a consumer regarding a debt.
Correct Answer
D. Requires a debt collector to cease communicating with a consumer regarding a debt.Explanation
A written refusal to pay a debt requires a debt collector to cease communicating with a consumer regarding the debt. This means that once the consumer has provided a written refusal to pay, the debt collector is legally obligated to stop contacting the consumer about the debt. This is to protect consumers from harassment or constant communication from debt collectors after they have clearly expressed their refusal to pay.Rate this question:
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- 14.
A debt collector can overshadow the Validation Period by:
- A.
Requesting payment in the first collection call.
- B.
Offering a settlement that expires after the validation period expires.
- C.
Demanding immediate payment during the validation period.
- D.
Not offering a settlement.
Correct Answer
C. Demanding immediate payment during the validation period.Explanation
Demanding immediate payment during the validation period can overshadow the validation period because it puts pressure on the debtor to pay without allowing them enough time to verify the debt or request validation. This tactic can limit the debtor's ability to exercise their rights under the Fair Debt Collection Practices Act (FDCPA), which grants them the right to dispute the debt and request validation within a certain timeframe. By demanding immediate payment, the debt collector is potentially disregarding the debtor's rights and preventing them from fully exercising their options during the validation period.Rate this question:
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- 15.
A debt collector must:
- A.
Provide written notice of the intent to deposit a check post dated by more than 5 days.
- B.
Contact a consumer between 10:00 a.m. and 7:00 p.m. in the collector’s time zone.
- C.
Contact a third party repeatedly to obtain location information.
- D.
Increase the amount of the debt if the consumer does not pay.
Correct Answer
A. Provide written notice of the intent to deposit a check post dated by more than 5 days.Explanation
A debt collector must provide written notice of the intent to deposit a check post dated by more than 5 days. This requirement ensures that the consumer is aware of the collector's intention to deposit the check on a specific date, allowing the consumer to make necessary arrangements to ensure funds are available. It also provides transparency and prevents any surprise withdrawals from the consumer's account.Rate this question:
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- 16.
A debt collector can provide information regarding a debt to a third party if the consumer gives permission to disclose the information.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
A debt collector is allowed to share information about a debt with a third party if the consumer has given their consent to disclose the information. This means that if the consumer explicitly authorizes the debt collector to provide details about their debt to someone else, the debt collector is legally permitted to do so. This ensures that the consumer has control over who has access to their personal financial information.Rate this question:
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- 17.
When a consumer disputes a debt, the debt collector must:
- A.
Continue regular collection efforts.
- B.
Not apply payments to the disputed portion of the debt.
- C.
Explain the consumer’s wages will be garnished.
- D.
File suit to collect the debt.
Correct Answer
B. Not apply payments to the disputed portion of the debt.Explanation
When a consumer disputes a debt, the debt collector is required to not apply any payments to the disputed portion of the debt. This means that the collector cannot use any payments made by the consumer to reduce or settle the disputed amount. Instead, they must investigate the dispute and resolve it before applying any payments. This ensures that the consumer's rights are protected and that the disputed debt is properly addressed and resolved.Rate this question:
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- 18.
A debt collector who violates the FDCPA can be liable for:
- A.
A minimum of $1,000 in statutory damages.
- B.
Actual damages of $1,000 per violation.
- C.
Statutory damages of up to $1,000 and attorney’s fees.
- D.
Debt collectors cannot be sued under the FDCPA.
Correct Answer
C. Statutory damages of up to $1,000 and attorney’s fees.Explanation
According to the information provided, a debt collector who violates the FDCPA (Fair Debt Collection Practices Act) can be held liable for statutory damages of up to $1,000 and attorney's fees. This means that the debt collector may have to pay a minimum of $1,000 as statutory damages, and in addition to that, they may also be responsible for covering the attorney's fees of the party who filed the lawsuit against them. This answer is supported by the options provided and aligns with the legal consequences for violating the FDCPA.Rate this question:
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- 19.
The Fair Debt Collection Practices Act is designed:
- A.
Make debt collection more difficult.
- B.
Allow consumers to discharge their past due debts.
- C.
Handcuff debt collectors with onerous provisions.
- D.
Eliminate abusive collection efforts.
Correct Answer
D. Eliminate abusive collection efforts.Explanation
The Fair Debt Collection Practices Act is designed to eliminate abusive collection efforts. This means that the act aims to put an end to any unfair, deceptive, or harassing practices used by debt collectors when trying to collect debts from consumers. The act provides guidelines and regulations that debt collectors must follow, such as not using threats or false statements, not contacting consumers at inconvenient times or places, and not disclosing a consumer's debt to third parties. By eliminating abusive collection efforts, the act aims to protect consumers from unfair treatment and ensure that debt collection is conducted in a fair and respectful manner.Rate this question:
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- 20.
A consumer’s verbal request for a debt collector to cease communication:
- A.
Provides notice that the time or place of the communication might be inconvenient for the consumer.
- B.
Has no impact on debt collection efforts.
- C.
Has the same impact as a written cease communication request.
- D.
Has the same impact as a written refusal to pay.
Correct Answer
A. Provides notice that the time or place of the communication might be inconvenient for the consumer.Explanation
A consumer's verbal request for a debt collector to cease communication provides notice that the time or place of the communication might be inconvenient for the consumer. This means that the consumer is indicating that they do not wish to be contacted further, possibly due to the timing or location of the communication. It does not have the same impact as a written cease communication request or a written refusal to pay, but it does serve as a notice to the debt collector that further communication may be inconvenient for the consumer.Rate this question:
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- 21.
When a consumer is represented by an attorney,
- A.
A debt collector may communicate with the consumer or the attorney and attempt to obtain location information from third parties.
- B.
A debt collector may communicate with the attorney and attempt to obtain location information from third parties.
- C.
A debt collector may communicate with the attorney only.
- D.
A debt collector must cease all communications regarding the debt.
Correct Answer
C. A debt collector may communicate with the attorney only.Explanation
When a consumer is represented by an attorney, a debt collector is allowed to communicate with the attorney only. This means that the debt collector cannot directly communicate with the consumer and cannot attempt to obtain location information from third parties. The purpose of this rule is to ensure that the consumer's rights are protected and that all communication regarding the debt is handled through their legal representative.Rate this question:
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- 22.
A debt collector does not violate the FDCPA by belittling or embarrassing the consumer.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from engaging in abusive, unfair, or deceptive practices when collecting debts. This includes actions that may belittle or embarrass the consumer. Therefore, it is incorrect to say that a debt collector does not violate the FDCPA by engaging in such behavior.Rate this question:
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- 23.
A debt collector may tell a consumer he has committed a crime by failing to pay the debt.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
A debt collector is not allowed to falsely accuse a consumer of committing a crime for failing to pay a debt. This is a violation of the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from using false or misleading statements to collect debts. Therefore, the statement is false.Rate this question:
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- 24.
When communicating with a consumer, a debt collector must identify herself and disclose the purpose of the communication.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
When communicating with a consumer, a debt collector must identify herself and disclose the purpose of the communication. This is because it is a legal requirement under the Fair Debt Collection Practices Act (FDCPA). The purpose of this requirement is to ensure transparency and protect consumers from deceptive or misleading practices by debt collectors. By identifying themselves and explaining the purpose of the communication, consumers can make informed decisions and understand their rights in dealing with debt collectors.Rate this question:
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- 25.
A debt collector can overshadow the validation period in collection letters, but not in collection calls.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
This statement is false because a debt collector can also overshadow the validation period during collection calls. The validation period refers to the timeframe in which a consumer has the right to request validation of a debt. Both collection letters and collection calls are methods used by debt collectors to communicate with consumers, and in both cases, they can overshadow the validation period if they fail to provide the required information about the debt and the consumer's rights within the specified timeframe. Therefore, the statement is incorrect.Rate this question:
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- 26.
A debt collector can avoid FDCPA liability by having procedures in place to avoid FDCPA violations and errors.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Having procedures in place to avoid FDCPA violations and errors can indeed help a debt collector avoid FDCPA liability. The Fair Debt Collection Practices Act (FDCPA) sets guidelines and regulations for debt collectors to follow when collecting debts, and failure to comply with these regulations can result in liability. By implementing proper procedures and protocols, debt collectors can ensure that they are conducting their collection activities in a lawful and compliant manner, thus reducing the risk of FDCPA violations and potential liability.Rate this question:
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- 27.
To cease collection attempts at the place of employment, a consumer:
- A.
Must notify a debt collector verbally or in writing that he cannot take calls at work.
- B.
Must send a written notice enclosing the employer’s policy regarding personal calls at work.
- C.
Must have his employer contact the debt collector to provide notice.
- D.
Cannot stop collection attempts at the place of employment.
Correct Answer
A. Must notify a debt collector verbally or in writing that he cannot take calls at work.Explanation
The correct answer is that the consumer must notify a debt collector verbally or in writing that he cannot take calls at work. This is because the consumer needs to inform the debt collector about his inability to receive calls at his place of employment. By doing so, the debt collector will be aware of the consumer's situation and will cease collection attempts at the workplace.Rate this question:
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- 28.
A consumer’s written dispute during the Validation Period:
- A.
Has no impact on collection calls.
- B.
Requires the debt collector to cease communication and provide verification of the debt.
- C.
Requires the debt collector to provide verification of the debt, but collection efforts may continue.
- D.
Requires the creditor to contact the consumer to provide the verification of the debt.
Correct Answer
B. Requires the debt collector to cease communication and provide verification of the debt.Explanation
During the Validation Period, if a consumer submits a written dispute, it requires the debt collector to stop all communication with the consumer. Additionally, the debt collector is obligated to provide verification of the debt to the consumer. This means that they must provide evidence and documentation that proves the debt is valid. However, collection efforts may still continue even though communication is ceased.Rate this question:
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- 29.
Which of the following statements, within the first 5 days of the validation period, would not constitute overshadowing?
- A.
If you do not pay this debt immediately we will bring suit against you.
- B.
You can avoid having a lawsuit brought against you if you settle your account with a 50% payment within 5 days.
- C.
This debt is seriously delinquent. The balance in full is due.
- D.
You have to request validation or pay within 20 days.
Correct Answer
C. This debt is seriously delinquent. The balance in full is due.Explanation
The statement "This debt is seriously delinquent. The balance in full is due" would not constitute overshadowing within the first 5 days of the validation period because it simply states the current status of the debt and the requirement to pay the full balance. It does not threaten legal action or offer a settlement option like the other statements, which could potentially divert the consumer's attention from their right to request validation or pay within 20 days.Rate this question:
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- 30.
The Fair Debt Collection Practices Act:
- A.
Applies to first party grantors.
- B.
Applies to written communications, but not verbal communications.
- C.
Was enacted to eliminate abusive, deceptive, and unfair debt collection practices.
- D.
Was enacted to encourage consumers to file bankruptcy.
Correct Answer
C. Was enacted to eliminate abusive, deceptive, and unfair debt collection practices.Explanation
The Fair Debt Collection Practices Act was enacted to eliminate abusive, deceptive, and unfair debt collection practices. This legislation aims to protect consumers from harassment and unfair treatment by debt collectors. It sets guidelines and restrictions on how debt collectors can communicate with debtors, what information they can disclose, and prohibits practices such as harassment, false or misleading representations, and unfair collection methods. This law does not apply to first-party grantors or verbal communications, but it does cover written communications. It is not intended to encourage consumers to file for bankruptcy, but rather to provide them with fair treatment and recourse when dealing with debt collectors.Rate this question:
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Mar 21, 2023Quiz Edited by
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Jan 29, 2014Quiz Created by
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