Fair Debt Collection PrActices Act! Trivia Quiz
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Do you know anything about the Fair Debt Collection Practices Act? Would you be able to pass this quiz? The FDCPA is a federal ruling that restricts third-party debt collectors' actions trying to collect debts on behalf of someone else. As it relates to this quiz, you will need to understand the definition of the consumer and the definition of location information. Good luck with this quiz.
- 1.
What is the purpose of the FDCPA?
- A.
To force consumer to pay outstanding debts utilizing threats, violence, obscene language, and by causing their telephone to ring repeatedly.
- B.
To allow debt collectors to collect outstanding debts by threatening arrest or imprisonment of any person accused of nonpayment.
- C.
To eliminate abusive debt collection practices by debt collectors, to insure that those debt collectors who refrain from using abusing debt collection practices are not disadvantaged, and to promote consistent State action to protect consumers against debt collection abuses.
- D.
None of the above
Correct Answer
C. To eliminate abusive debt collection practices by debt collectors, to insure that those debt collectors who refrain from using abusing debt collection practices are not disadvantaged, and to promote consistent State action to protect consumers against debt collection abuses.Explanation
The purpose of the FDCPA is to eliminate abusive debt collection practices by debt collectors, ensure that debt collectors who refrain from using abusive practices are not disadvantaged, and promote consistent state action to protect consumers against debt collection abuses. This means that the FDCPA aims to regulate and prevent unfair and harassing debt collection tactics, and to establish a level playing field for debt collectors who follow the rules. Additionally, it seeks to ensure that consumers are protected from abusive practices and have recourse if they are subjected to such practices.Rate this question:
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- 2.
What is the definition of a “consumer”?
- A.
A person attempting to service legal process on another person.
- B.
A person obligated or allegedly obligated to pay any debt.
- C.
Any person acting as a debt collector.
- D.
An employee of a consumer reporting agency.
Correct Answer
B. A person obligated or allegedly obligated to pay any debt.Explanation
The definition of a "consumer" is a person who is obligated or allegedly obligated to pay any debt. This means that a consumer is someone who has a legal or financial responsibility to repay a debt, whether it is a loan, credit card debt, or any other form of financial obligation. It does not include someone who is attempting to serve legal process on another person, an employee of a consumer reporting agency, or any person acting as a debt collector.Rate this question:
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- 3.
What is the definition of a “creditor”?
- A.
Any person who offers or extends credit creating a debt or to whom a debt is owed.
- B.
A person obligated or allegedly obligated to pay any debt.
- C.
Any person acting as a debt collector.
- D.
A person attempting to service legal process on another person.
Correct Answer
A. Any person who offers or extends credit creating a debt or to whom a debt is owed.Explanation
A creditor is defined as any person who offers or extends credit, which results in the creation of a debt, or to whom a debt is owed. This definition encompasses both the person who provides credit and the person who owes the debt. It does not include individuals acting as debt collectors or those attempting to serve legal process on another person.Rate this question:
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- 4.
What is the definition of a “debt”?
- A.
A deduction of earned wages for repayment of an outstanding judgment.
- B.
Any obligation or alleged obligation of a consumer to pay money arising out of a transaction for personal, family, or household purposes.
- C.
A property lien or seizure of assets for repayment of an outstanding judgment.
- D.
A garnishment of funds from a bank account for repayment of an outstanding judgment.
Correct Answer
B. Any obligation or alleged obligation of a consumer to pay money arising out of a transaction for personal, family, or household purposes.Explanation
A "debt" refers to any obligation or alleged obligation of a consumer to pay money that arises from a transaction for personal, family, or household purposes. This definition encompasses all types of financial obligations that individuals may have, such as loans, credit card debt, or mortgages, which are incurred for personal or household needs. It does not specifically refer to deductions from wages, property liens, asset seizures, or garnishments, which are different methods of collecting or repaying debts.Rate this question:
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- 5.
What is the definition of “location information”?
- A.
A consumer’s employment address.
- B.
A consumer’s contact information.
- C.
A consumer’s residential address.
- D.
A consumer’s place of abode and his telephone number at such place, or his place of employment.
Correct Answer
D. A consumer’s place of abode and his telephone number at such place, or his place of employment.Explanation
The definition of "location information" refers to a consumer's place of abode and his telephone number at such place, or his place of employment. This means that location information includes both the consumer's residential address and their contact information at that address, or their employment address. It encompasses the physical location where the consumer resides or works, along with their corresponding telephone number.Rate this question:
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- 6.
When skip tracing by phone, debt collectors are allowed to contact third parties. Debt collectors must:
- A.
Inform the third party that you are calling from a debt collection office.
- B.
Inform the third party that the debtor has an outstanding debt.
- C.
Reveal the creditor’s name and the debt amount.
- D.
None of the above
Correct Answer
D. None of the aboveExplanation
When skip tracing by phone, debt collectors are not allowed to contact third parties and disclose any information about the debtor or the debt to them. This is because the Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from discussing a consumer's debt with anyone other than the consumer or their attorney. Therefore, the correct answer is "None of the above."Rate this question:
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- 7.
When speaking with a third party, a debt collector must:
- A.
Identify yourself, but not your company, unless specifically asked.
- B.
Inform the third party that you are trying to locate the debtor or are verifying location information.
- C.
Not mention that the debtor owes any of the money.
- D.
If asked, simply state that you have personal business with the debtor.
- E.
All of the above.
Correct Answer
E. All of the above.Explanation
The correct answer is "All of the above" because when speaking with a third party, a debt collector is required to identify themselves, inform the third party about their purpose of locating the debtor or verifying location information, and not mention the debt owed by the debtor unless specifically asked. If asked, the debt collector should only state that they have personal business with the debtor. Therefore, all of the given statements are correct requirements for a debt collector when speaking with a third party.Rate this question:
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- 8.
When is it permissible to communicate with a consumer via post card?
- A.
After a debtor has submitted a cease and desist letter.
- B.
After a debtor has disputed the debt in question.
- C.
It is never permissible.
- D.
After the debtor has agreed to a payment plan.
Correct Answer
C. It is never permissible.Explanation
The correct answer is "It is never permissible." This means that under no circumstances is it allowed to communicate with a consumer via postcard. This is likely because postcards are not secure and can easily be seen by others, potentially compromising the privacy and confidentiality of the communication. To ensure the protection of consumer information, other forms of communication should be used instead.Rate this question:
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- 9.
When is it permissible to communicate with a third party more than once?
- A.
When the third party requests a call back.
- B.
The debt collector believes that the third parties’ earlier response is erroneous.
- C.
The third party now has correct and complete location information.
- D.
All of the above.
Correct Answer
D. All of the above.Explanation
It is permissible to communicate with a third party more than once when any of the following conditions are met: the third party requests a call back, the debt collector believes the third party's earlier response is erroneous, or the third party now has correct and complete location information.Rate this question:
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- 10.
The standard times you are allowed to call a consumer are between 8 a.m. and 9 p.m., or at a time that has been determined to be convenient to the consumer.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement is true because according to regulations, telemarketers are only allowed to call consumers between the hours of 8 a.m. and 9 p.m. This time frame ensures that consumers are not disturbed during late hours or early mornings. Additionally, if a consumer has specified a more convenient time for calls, telemarketers are also allowed to call during that specific time.Rate this question:
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- 11.
If you learn that a consumer works a night shift, you:
- A.
Should not attempt to collect on this account.
- B.
Should only call early in the morning, when the consumer is probably returning home from his shift.
- C.
Should only contact the consumer anytime between 8:00 a.m. and 9:00 p.m.
- D.
Should find out when it’s more convenient to contact the consumer and call back during that time frame.
Correct Answer
D. Should find out when it’s more convenient to contact the consumer and call back during that time frame.Explanation
The correct answer is "Should find out when it’s more convenient to contact the consumer and call back during that time frame." This is the most appropriate response because it acknowledges the consumer's unique situation of working a night shift and recognizes the importance of finding a time that is convenient for them. By determining when it is more suitable to contact the consumer, it shows respect for their schedule and increases the likelihood of successful communication.Rate this question:
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- 12.
Under what conditions may a debt collector make direct contact with a consumer after being advised that the consumer is represented by an attorney?
- A.
The attorney fails to respond within a reasonable period of time.
- B.
Prior consent from the attorney.
- C.
Permission from the court.
- D.
All of the above.
Correct Answer
D. All of the above.Explanation
A debt collector may make direct contact with a consumer after being advised that the consumer is represented by an attorney if any of the following conditions are met: the attorney fails to respond within a reasonable period of time, prior consent is obtained from the attorney, or permission is granted by the court. In these situations, the debt collector is allowed to communicate directly with the consumer even if they have legal representation.Rate this question:
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- 13.
You are permitted to call a consumer at his/her place of employment if:
- A.
The debt he/she owes is disputed.
- B.
You have no reason to believe that the consumer’s employer does not permit such phone calls.
- C.
Never.
- D.
None of the above.
Correct Answer
B. You have no reason to believe that the consumer’s employer does not permit such phone calls.Explanation
You are allowed to call a consumer at his/her place of employment if you have no reason to believe that the consumer's employer does not allow such phone calls. This means that if there is no evidence or indication that the employer prohibits these calls, it is permissible to contact the consumer at their workplace. However, if there is any reason to believe that the employer does not permit such calls, it would not be appropriate to contact the consumer at their place of employment.Rate this question:
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- 14.
When a consumer notifies a company, agency, or law firm in writing, to cease communication concerning a debt, we may contact the consumer to advise that our collections efforts are being terminated.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
When a consumer requests in writing for a company, agency, or law firm to stop communicating about a debt, the company may still contact the consumer to inform them that their collections efforts are being stopped. This means that even though the communication about the debt is being terminated, the company wants to inform the consumer about their decision to stop the collections process.Rate this question:
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- 15.
The term “consumer” includes the consumer’s spouse, parent (if the consumer is a minor), guardian, executor, or administrator.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The term "consumer" includes not only the individual themselves, but also their spouse, parent (if they are a minor), guardian, executor, or administrator. This means that any actions or decisions made by these individuals on behalf of the consumer can also be considered under the term "consumer". Therefore, the statement is true.Rate this question:
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- 16.
A debt collector is allowed to use tactics that harass, oppress, or abuse a consumer or person in order to collect a debt.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
A debt collector is not allowed to use tactics that harass, oppress, or abuse a consumer or person in order to collect a debt. The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from engaging in such behavior. Debt collectors must follow certain guidelines and regulations when attempting to collect a debt, and they are not permitted to use abusive or harassing tactics.Rate this question:
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- 17.
Debt collectors are trained to use which of the following methods when collecting a debt:
- A.
The use or threat of violence.
- B.
The use of obscene or profane language.
- C.
Publish a list of consumers who allegedly refuse to pay debts.
- D.
Advertise the sale of an existing debt to coerce payment.
- E.
Cause a telephone to ring repeatedly or continuously.
- F.
Refusal to disclose the caller’s identity when speaking directly to a consumer.
- G.
None of the above.
Correct Answer
G. None of the above.Explanation
The correct answer is "None of the above" because debt collectors are prohibited by law from using any of the mentioned methods when collecting a debt. The Fair Debt Collection Practices Act (FDCPA) outlines guidelines for debt collectors, which include not using violence, obscene language, or disclosing a consumer's debt to the public. They are also not allowed to advertise the sale of a debt or engage in harassment tactics such as continuously calling or refusing to disclose their identity.Rate this question:
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- 18.
Debt collectors may introduce themselves as, or imply, that they are an attorney.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Debt collectors are not allowed to falsely represent themselves as attorneys or imply that they are attorneys. This is because it can be deceptive and misleading to the debtor. Debt collectors must accurately identify themselves and their purpose when communicating with debtors.Rate this question:
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- 19.
A collector may change his/her own name every time they communicate with a consumer.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because a collector cannot change their own name every time they communicate with a consumer. Collectors are required to provide accurate and consistent information to consumers, including their own name. Changing names frequently would create confusion and potentially hinder the collection process.Rate this question:
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- 20.
It is false and/or misleading to imply to a consumer that:
- A.
They may be arrested or imprisoned for nonpayment of a debt.
- B.
You, the debt collector, are contacting the consumer in an attempt to assist with the arrangement of a payment plan.
- C.
The debt collection firm is working with or for the creditor.
- D.
None of the above.
Correct Answer
A. They may be arrested or imprisoned for nonpayment of a debt.Explanation
The correct answer is "They may be arrested or imprisoned for nonpayment of a debt." It is false and misleading to imply to a consumer that they can be arrested or imprisoned for not paying a debt. Debt collection practices are regulated by laws such as the Fair Debt Collection Practices Act (FDCPA), which prohibits debt collectors from making false or misleading statements to consumers. Threatening arrest or imprisonment for nonpayment is a violation of these laws and can mislead and intimidate consumers.Rate this question:
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- 21.
Regarding postdated checks, it is unfair practice to:
- A.
Deposit the check prior to the date indicated.
- B.
Threaten to deposit the check prior to the date indicated.
- C.
Threaten criminal action if the check is returned for insufficient funds.
- D.
All of the above.
Correct Answer
D. All of the above.Explanation
The correct answer is "All of the above" because all three actions mentioned (depositing the check prior to the date indicated, threatening to deposit the check prior to the date indicated, and threatening criminal action if the check is returned for insufficient funds) are considered unfair practices regarding postdated checks.Rate this question:
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- 22.
You have five days to inform the debtor in writing after an initial contact that you have a claim.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
According to the given statement, it is true that you have five days to inform the debtor in writing after an initial contact that you have a claim. This implies that there is a specific time frame within which you must notify the debtor in writing about your claim after the initial contact has been made.Rate this question:
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- 23.
If the consumer notifies the debt collector in writing within the initial 30-day period that the debt is disputed, the debt collector must:
- A.
Continue collections activity on the account.
- B.
Provide the consumer with written verification of the debt.
- C.
Request an advance-dated check be sent to us as a security deposit until the dispute has been clarified.
- D.
All of the above.
Correct Answer
B. Provide the consumer with written verification of the debt.Explanation
If the consumer notifies the debt collector in writing within the initial 30-day period that the debt is disputed, the debt collector must provide the consumer with written verification of the debt. This means that the debt collector is required to provide the consumer with documentation that proves the validity of the debt. This allows the consumer to review the information and ensure that the debt is accurate before proceeding with any further actions.Rate this question:
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- 24.
A debt collector that fails to comply with any provision of the FDCPA with respect to any person may be liable to that person in an amount equal to the sum of:
- A.
Additional damages up to $500 and a public apology.
- B.
A reverse judgment entered against the debt collector.
- C.
Civil lawsuit for damages sustained, additional damages up to $1,000, and/or court fees and attorney fees.
- D.
All of the above
Correct Answer
C. Civil lawsuit for damages sustained, additional damages up to $1,000, and/or court fees and attorney fees.Explanation
A debt collector that fails to comply with any provision of the FDCPA may be held liable to the affected person in a civil lawsuit. The person can seek damages for any harm suffered as a result of the debt collector's actions, and may also be entitled to additional damages of up to $1,000. Additionally, the court may award fees and costs associated with the lawsuit, including attorney fees. Therefore, the correct answer is that the debt collector may be liable for a civil lawsuit for damages sustained, additional damages up to $1,000, and/or court fees and attorney fees.Rate this question:
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- 25.
Informing an unauthorized third party that a consumer owes a debt.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
This statement is true because it is a violation of consumer protection laws to inform an unauthorized third party about a consumer's debt without their consent. This can lead to privacy breaches and potential harm to the consumer's reputation. It is important for debt collectors and creditors to follow legal guidelines and obtain proper authorization before disclosing any information about a consumer's debt to third parties.Rate this question:
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- 26.
Calling a nearby (neighbor) back if the original information he/she provided was inaccurate.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because calling a nearby neighbor back if the original information provided was inaccurate is not a common or necessary practice. When someone provides inaccurate information, it is more common to seek out alternative sources or verify the information through other means rather than specifically calling the neighbor back.Rate this question:
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- 27.
Indicate on an envelope to a consumer, “payment overdue – remit at once”.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement "payment overdue - remit at once" indicates that the consumer has a payment that is past its due date and needs to be paid immediately. Therefore, it is correct to indicate on an envelope to the consumer that the payment is overdue and should be remitted at once.Rate this question:
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- 28.
Disclosing the name of your employer if expressly requested by a third party.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Disclosing the name of your employer if expressly requested by a third party is not true. This means that if someone specifically asks for the name of your employer, you are not obligated to disclose that information. This could be due to privacy concerns or confidentiality agreements with your employer.Rate this question:
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- 29.
Calling a consumer at 8:00 a.m. in their time zone.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Calling a consumer at 8:00 a.m. in their time zone is not the correct approach because it may be too early in the morning for them and could disrupt their routine. It is important to respect the consumer's time and preferences when making calls, and calling at a more suitable time would be more appropriate.Rate this question:
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- 30.
Contacting a consumer at their place of employment after being advised by the consumer that their employer prohibits this type of communication.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Contacting a consumer at their place of employment after being advised by the consumer that their employer prohibits this type of communication is a violation of consumer protection laws. It is considered harassment and can lead to legal consequences. Therefore, the correct answer is True.Rate this question:
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- 31.
Discussing a debt with a consumer’s spouse.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Discussing a debt with a consumer's spouse is not allowed under the Fair Debt Collection Practices Act (FDCPA). The FDCPA prohibits debt collectors from disclosing information about a consumer's debt to anyone other than the consumer, their attorney, a credit reporting agency, or the creditor themselves. Therefore, it is not true that discussing a debt with a consumer's spouse is permissible.Rate this question:
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- 32.
Obscene language or profanity.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The statement "Obscene language or profanity" is true. This means that the use of offensive or vulgar language is considered obscene or profane. It is generally socially unacceptable and can be offensive to others.Rate this question:
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- 33.
Continually interrupting or badgering the consumer when he/she is trying to answer questions.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
This statement suggests that continually interrupting or badgering the consumer while they are trying to answer questions is a true behavior. This means that it is considered inappropriate or disrespectful to interrupt or badger the consumer during their response.Rate this question:
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- 34.
Calling a person once between the hours of 8:00 am – 9:00 pm in their time zone.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement suggests that calling a person once between the hours of 8:00 am and 9:00 pm in their time zone is false. This could mean that either calling someone during those hours is not allowed or that it is not necessary to limit calls to that specific time frame.Rate this question:
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- 35.
Causing a person’s phone to ring repeatedly or continuously for the purpose of annoying them.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
This statement is describing the act of repeatedly or continuously causing a person's phone to ring in order to annoy them. If this behavior is true, it means that intentionally annoying someone by repeatedly calling their phone is considered as causing their phone to ring repeatedly or continuously.Rate this question:
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- 36.
Threatening violence or any action that would harm a person or their reputation.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Threatening violence or any action that would harm a person or their reputation is considered a form of misconduct and is generally not acceptable behavior. It is important to promote a safe and respectful environment where individuals feel protected from harm and their reputation is not tarnished. Therefore, the statement "Threatening violence or any action that would harm a person or their reputation" being true aligns with the principles of promoting a positive and respectful community.Rate this question:
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- 37.
Threatening the consumer with a lawsuit when you know that this is not true.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
This statement is true because threatening a consumer with a lawsuit when you know it is not true is considered unethical and can be illegal. It is a deceptive practice that aims to intimidate or manipulate the consumer into taking a desired action. Engaging in such behavior can lead to legal consequences and damage the reputation of the individual or organization making the false threat.Rate this question:
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- 38.
Attempting to collect the correct amount of the debt.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement suggests that attempting to collect the correct amount of the debt is not true. This implies that there may be some inaccuracies or discrepancies in the debt collection process, leading to an incorrect amount being collected. Therefore, the correct answer is False.Rate this question:
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- 39.
Telling a consumer you intend to have them arrested or incarcerated for non- payment.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
This statement is true because it is illegal and unethical to threaten a consumer with arrest or incarceration for non-payment. Debt collection practices are regulated by laws such as the Fair Debt Collection Practices Act, which prohibits debt collectors from using deceptive or abusive tactics. Threatening someone with arrest is considered a violation of these laws and can result in legal consequences for the debt collector.Rate this question:
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- 40.
Indicating to a debtor that you are compiling information for credit bureau.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Indicating to a debtor that you are compiling information for a credit bureau is true. This means that you are informing the debtor that their payment history and credit information will be reported to a credit bureau, which can affect their credit score and future borrowing opportunities. This practice is common among lenders and creditors to ensure the accuracy and transparency of credit information.Rate this question:
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- 41.
Not using any false, deceptive, or misleading means to collect a debt.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is referring to the act of not using false, deceptive, or misleading means to collect a debt. The correct answer is False because it is not true that one should not use any false, deceptive, or misleading means to collect a debt.Rate this question:
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- 42.
Sending the consumer a letter in an envelope that has no debt collection language or symbol, rather than a postcard, regarding the debt owed.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Sending the consumer a letter in an envelope that has no debt collection language or symbol, rather than a postcard, regarding the debt owed is not true. The correct answer is False. This is because the Fair Debt Collection Practices Act (FDCPA) requires debt collectors to communicate with consumers in a way that protects their privacy and prevents third parties from knowing about their debts. Sending a letter in an envelope without any debt collection language or symbol helps maintain the privacy of the consumer and is in compliance with the FDCPA.Rate this question:
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- 43.
Threatening to deposit a post dated check early.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Threatening to deposit a post-dated check early is considered true. This is because a post-dated check is a check that is written with a future date. If someone threatens to deposit it before the agreed date, they are violating the agreement and potentially engaging in fraudulent behavior.Rate this question:
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- 44.
The use of unfair or unconscionable means to collect or attempt to collect a debt.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
This statement is true. The use of unfair or unconscionable means to collect or attempt to collect a debt refers to any unethical or unjust practices employed by debt collectors. These may include harassment, threats, deception, or any other tactics that violate the rights of the debtor. Such practices are regulated and prohibited by various laws, such as the Fair Debt Collection Practices Act (FDCPA) in the United States, to ensure fair treatment of individuals in debt.Rate this question:
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Mar 21, 2023Quiz Edited by
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Dec 11, 2017Quiz Created by
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