Cavalry Portfolio Services - FDCPA Exam

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

You can request the consumer's home address, home phone number, and place of employment from a third party.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.