FDCPA: Borrower/Consumer Communication Quiz
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- 1.
The FDCPA applies to law firms who:
- A.
Handle foreclosure cases because the law may cover legal proceedings to enforce mortgages and notes
- B.
Handle true collection matters such as credit card collections
- C.
Handle proceedings supplemental to collect deficiency judgments
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The FDCPA, or Fair Debt Collection Practices Act, applies to law firms who handle foreclosure cases because the law may cover legal proceedings to enforce mortgages and notes. It also applies to law firms who handle true collection matters such as credit card collections. Additionally, the FDCPA applies to law firms who handle proceedings supplemental to collect deficiency judgments. Therefore, the correct answer is "All of the above" as all three scenarios fall under the jurisdiction of the FDCPA.Rate this question:
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- 2.
The FDCPA Mini Miranda script should be:
- A.
Given verbally each time a consumer contacts our office about the mortgage loan, whether by phone or in a person
- B.
Included at the bottom of all cover letters sent by our office to consumers and their attorneys
- C.
Included at the bottom of all emails sent by our office to consumers and their attorneys
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The FDCPA Mini Miranda script should be included in all forms of communication with consumers and their attorneys, whether it is during a phone call, in-person meeting, cover letters, or emails. This ensures that the required disclosure is consistently provided to consumers, informing them of their rights under the Fair Debt Collection Practices Act (FDCPA). By including the script in all forms of communication, it helps to maintain compliance with the law and promotes transparency and fairness in debt collection practices.Rate this question:
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- 3.
True or False: Our office can call return a call left by a consumer at any time.
- A.
True - Once the consumer initiates the contact, we can return the call at any time
- B.
False - Contacts before 8 AM or AFTER 9 PM are prohibited
Correct Answer
B. False - Contacts before 8 AM or AFTER 9 PM are prohibitedExplanation
The correct answer is False because there are restrictions on when our office can return a call left by a consumer. Contacts before 8 AM or after 9 PM are prohibited, so we cannot return the call at any time.Rate this question:
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- 4.
True or False: If a borrower represented by counsel calls our office and says his/her attorney told the borrower to tell us that it is OK for our law firm to speak directly with the borrower, that is sufficient for us to speak the borrower instead of the borrower's attorney.
- A.
True - A verbal authorization from the borrower is sufficient
- B.
False - The borrower attorney must send our law firm written authorization granting us permission to speak directly to the borrower (his or her client)
Correct Answer
B. False - The borrower attorney must send our law firm written authorization granting us permission to speak directly to the borrower (his or her client)Explanation
The correct answer is False because in order for the law firm to speak directly with the borrower, they require written authorization from the borrower's attorney. A verbal authorization from the borrower is not sufficient.Rate this question:
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- 5.
To identify a consumer who call our office to ensure it is the borrower, we should ask the caller to verify at least 2 of which of the following (check all that apply)
- A.
Last 4 of SSN
- B.
Last 4 of mortgages account loan number
- C.
Property Address
- D.
Court Cause Number of Foreclose
Correct Answer(s)
A. Last 4 of SSN
B. Last 4 of mortgages account loan number
C. Property AddressExplanation
To identify a consumer who calls our office, we should ask the caller to verify at least two of the following: the last 4 digits of their Social Security Number, the last 4 digits of their mortgage account loan number, and their property address. These pieces of information are unique to the borrower and can help confirm their identity. The Court Cause Number of Foreclose is not mentioned as a valid verification method, so it is not applicable in this case.Rate this question:
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- 6.
We can speak to which of the following parties without separate borrower authorization (check all that apply):
- A.
The borrower
- B.
The borrower's spouse
- C.
The borrower's parent, if the consumer is considered a minor
- D.
A guardian, executor or administrator, for borrower
- E.
Heirs who own the real estate provided we have proof of death/heirship
- F.
Borrower's attorney
- G.
Borrower's neighbors
- H.
Borrower's children who did not sign loan docs
Correct Answer(s)
A. The borrower
B. The borrower's spouse
C. The borrower's parent, if the consumer is considered a minor
D. A guardian, executor or administrator, for borrower
E. Heirs who own the real estate provided we have proof of death/heirship
F. Borrower's attorneyExplanation
The lender can speak to the borrower, the borrower's spouse, the borrower's parent (if the consumer is a minor), a guardian, executor, or administrator for the borrower, heirs who own the real estate (with proof of death/heirship), and the borrower's attorney without separate borrower authorization. This means that the lender does not need additional permission from these parties to communicate with them regarding the loan or related matters. It is important for the lender to have direct contact with these individuals to ensure effective communication and proper handling of the loan.Rate this question:
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- 7.
True or False: If a borrower calls us and tells us they do not have an attorney and cannot afford an attorney, it is OK for us to give them legal advise since they do not have an attorney.
- A.
True - Once the borrower confirms they are not represented by counsel we can give them legal advice
- B.
False - We can never give legal advice to a borrower
Correct Answer
B. False - We can never give legal advice to a borrower -
- 8.
True or False: We should send a FDCPA Notice within 5 days of the initial communication between the law firm and the borrower, and it does not matter if this communication is before or after the complaint is filed.
- A.
True - If we communicate with a borrower before we file the complaint, we must check to see if we have sent the FDCPA Notice yet, and if not, we should send the FDCPA notice within 5 days of that initial communication
- B.
False - We never need to send the FDCPA Notice before filing the complaint especially if it's just a phone call
Correct Answer
A. True - If we communicate with a borrower before we file the complaint, we must check to see if we have sent the FDCPA Notice yet, and if not, we should send the FDCPA notice within 5 days of that initial communicationExplanation
The explanation states that if the law firm communicates with a borrower before filing a complaint, they must check if they have sent the FDCPA Notice. If they haven't, they should send the notice within 5 days of that initial communication. This implies that sending the FDCPA Notice is required in this situation, regardless of whether the communication occurs before or after filing the complaint.Rate this question:
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- 9.
True or False: To comply with CFPB, most of our servicer clients have implemented special processes for law firms to notify the servicer when a servicing-related borrower grievance is received by the law firm.
- A.
True - Each servicer may have a unique method (such as an email report or system notification) where we must send our notification to the servicer of borrower grievances received
- B.
False - The CFPB does not require servicers to keep track of servicing-related borrower grievances
Correct Answer
A. True - Each servicer may have a unique method (such as an email report or system notification) where we must send our notification to the servicer of borrower grievances received -
- 10.
Under the new CFPB rules effective January 2014, how long do servicers have to send a written acknowledgement of a receipt of a borrower "qualified written request"
- A.
Within 30 business days of receipt of the QWR
- B.
Within 20 business days of receipt of the QWR
- C.
Within 10 business days of receipt of the QWR
- D.
Within 5 business days of receipt of the QWR
Correct Answer
D. Within 5 business days of receipt of the QWRExplanation
Under the new CFPB rules effective January 2014, servicers are required to send a written acknowledgement of receipt of a borrower's "qualified written request" (QWR) within 5 business days of receiving it. This means that the servicers must acknowledge the receipt of the QWR within a relatively short period of time to ensure timely communication and address any concerns or issues raised by the borrower. This requirement aims to promote transparency and efficiency in the borrower-servicer relationship.Rate this question:
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- 11.
True or False: A servicer can obtained a 15 day extension of response to a QWR by sending such a notice to the borrower, making the maximum deadline to respond 45 days
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
A servicer can obtain a 15-day extension of response to a QWR (Qualified Written Request) by sending a notice to the borrower. This notice would extend the maximum deadline to respond to the QWR from 30 days to 45 days.Rate this question:
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- 12.
Under the new CFPB rules effective January 2014, how long do servicers have to send a written response after investigation to the borrower's "qualified written request"
- A.
Within 30 business days of the receipt of the QWR
- B.
Within 20 business days of the receipt of the QWR
- C.
Within 10 business days of the receipt of the QWR
- D.
Within 5 business days of the receipt of the QWR
Correct Answer
A. Within 30 business days of the receipt of the QWRExplanation
Under the new CFPB rules effective January 2014, servicers are required to send a written response to the borrower's "qualified written request" within 30 business days of receiving the QWR.Rate this question:
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- 13.
True or False: Letters sent to the law firm by an attorney or agent for the borrower never need to be treated as QWRs, and therefore they do not need to be sent by the law firm to the servicer/client.
- A.
True
- B.
False - A QWR may be sent by an agent of the borrower, which may include an attorney, so such notices should be sent to servicers to review and determine the appropriate QWR response eve if such notice was sent to the law firm
Correct Answer
B. False - A QWR may be sent by an agent of the borrower, which may include an attorney, so such notices should be sent to servicers to review and determine the appropriate QWR response eve if such notice was sent to the law firmExplanation
The given correct answer states that letters sent to the law firm by an attorney or agent for the borrower should be treated as QWRs and should be sent to the servicer/client for review and response. This is because a QWR can be sent by an agent of the borrower, including an attorney, and the servicer needs to review and determine the appropriate response, even if the notice was initially sent to the law firm.Rate this question:
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- 14.
Under the new CFPB rules effective January 2014, payoff figures must be sent to the borrower
- A.
Within 30 calendar days after a written payoff is received from the consumer.
- B.
Within 30 business days after a written payoff is received from the consumer.
- C.
Within 7 calendar days after a written payoff is received from the consumer.
- D.
Within 7 business days after a written payoff is received from the consumer.
Correct Answer
D. Within 7 business days after a written payoff is received from the consumer.Explanation
Under the new CFPB rules effective January 2014, payoff figures must be sent to the borrower within 7 business days after a written payoff is received from the consumer. This means that the lender has a maximum of 7 business days to provide the borrower with the requested payoff figures after receiving a written request for payoff.Rate this question:
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- 15.
If the law firm receives a written FCRA dispute from a borrower disputing credit reporting made by a servicer/client (check all that apply)
- A.
The law firm can safely ignore the written dispute because we are not a credit agency so it does not apply to us
- B.
The law firm should immediately forward the written dispute to our servicing client so our client can determine how they need to respond to the potential FCRA dispute
- C.
The law firm can safely ignore the written dispute because the FCRA does not apply to mortgage loans secured by principal residences
- D.
The servicer may be under a 30 day or similar deadline to reply to the written borrower dispute under the FCRA even though it was sent by the consumer to the law firm
Correct Answer(s)
B. The law firm should immediately forward the written dispute to our servicing client so our client can determine how they need to respond to the potential FCRA dispute
D. The servicer may be under a 30 day or similar deadline to reply to the written borrower dispute under the FCRA even though it was sent by the consumer to the law firmExplanation
The law firm should immediately forward the written dispute to their servicing client because the client is responsible for determining how to respond to the potential FCRA dispute. Additionally, the servicer may have a deadline, such as 30 days, to reply to the written borrower dispute under the FCRA, even if it was sent to the law firm by the consumer. Therefore, it is important for the law firm to promptly forward the dispute to their client to ensure compliance with the FCRA and meet any necessary response deadlines.Rate this question:
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Current Version
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Mar 16, 2023Quiz Edited by
ProProfs Editorial Team -
Sep 21, 2015Quiz Created by
FouttyandFoutty
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