You Vs Debt Collectors - Diy$$
This quiz comes to you from a former debt collector to inform you, the consumer, of your rights when receiving calls from collection agencies, particularly 3rd party collections. We were hired to pursue collecting actions, now its time to share. Lets see what you know so you can stop the debt collection calls and get started rebuilding your financial life. Once you complete this process, share with your family, friends, and others also.
- 1.
How can you as a consumer tell a 3rd party collector to stop calling and they must stop?
- A.
Demand the collector stop calling you and then hang up
- B.
Tell collector they have a wrong number and hang up
- C.
Send them a stop notice in writing to inform them to stop calling
- D.
Do your best John Wayne impression to throw them off the call
- E.
All of the above
Correct Answer
C. Send them a stop notice in writing to inform them to stop callingExplanation
Find out if collection agency is a third party collector and get mailing/fax info to send stop calling notice in writing.Rate this question:
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- 2.
What type of collector can demand payment after consumer defaults on a loan or debt?
- A.
First Party - The business that billed consumer
- B.
Third Party - The service/agency that the business hired to collect for them.
- C.
Attorney
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
The correct answer is "All of the above". This means that all three types of collectors mentioned - first party, third party, and attorney - can demand payment after a consumer defaults on a loan or debt. The first party refers to the business that originally billed the consumer, the third party refers to a service or agency hired by the business to collect on their behalf, and an attorney can also act as a collector in such situations. Therefore, all three options are valid.Rate this question:
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- 3.
By law, collectors can call between hours of ___ AM - ___ PM of consumer's time zone.
Correct Answer
8 - 9Explanation
According to the law, collectors are allowed to make calls to consumers between the hours of 8 AM and 9 PM in the consumer's time zone. This means that they cannot call before 8 AM or after 9 PM in order to respect the consumer's privacy and avoid any inconvenience during early morning or late evening hours.Rate this question:
- 4.
Anyone can talk to a 3rd Party Collector about debts of someone they are related to if
- A.
Have POA (Pwer Of Attorney) to communicate on their behalf
- B.
If the consumer which the collector is trying to reach authorizes them
- C.
The person isn't home who collector is trying to reach
- D.
Both A and B
Correct Answer
D. Both A and BExplanation
3rd Party Debt Collectors by law must only talk to debtor unless debtor authorizes them to speak to a representativeRate this question:
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- 5.
Consumer is any person obligated or allegedly obligated to pay any debt?
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
A consumer is defined as any person who is obligated or allegedly obligated to pay any debt. This means that if someone has a debt that they are required to pay, they are considered a consumer. Therefore, the statement that a consumer is any person obligated or allegedly obligated to pay any debt is true.Rate this question:
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- 6.
When a consumer write a 3rd party debt collector stating they are refusing to pay, the collector
- A.
Can continue to try to collect on debts since the debts is not disputed
- B.
Inform consumer that contact will cease but may incur further action
- C.
Must stop further collection demands
- D.
Both B and C
Correct Answer
D. Both B and CExplanation
When a consumer writes to a 3rd party debt collector stating that they are refusing to pay, the collector can either inform the consumer that contact will cease but may incur further action, or they must stop further collection demands. This means that the collector has the option to either stop contacting the consumer but pursue legal action, or completely halt any further collection attempts. Both options B and C are valid responses in this situation.Rate this question:
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- 7.
The _ _ _ _ _ stands for Fair Debt Collection Practices Act
Correct Answer
FDCPAExplanation
Debt collectors can be sued by violating any FDPCA policies. Both Collector and collector's agency share liability.Rate this question:
- 8.
Violation of FDPCA laws is
- A.
Sending a postcard about the debt to consumer
- B.
The consumer is contacted after sending "Stop" notice in writing
- C.
A 3rd party collector uses neighbor in Wisconsin or Minnesota in an attempt to contact consumer
- D.
When 3rd party collector does not identify consumer by anything other than their name and discloses consumers account info to another
- E.
All of the above
Correct Answer
E. All of the aboveExplanation
Violation of FDPCA laws refers to any act that goes against the regulations set by the Fair Debt Collection Practices Act. The given answer states that all of the mentioned actions constitute violations of FDPCA laws. Sending a postcard about the debt to the consumer, contacting the consumer after they have sent a "Stop" notice in writing, using a neighbor in Wisconsin or Minnesota to contact the consumer, and disclosing the consumer's account information to another without proper identification are all actions that are prohibited by the FDPCA. Hence, all of the mentioned actions are violations of FDPCA laws.Rate this question:
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- 9.
When consumer's relative calls in from a number collector is calling and says she owns the phone used to reach him/her and says stop calling, collectors must Stop calls to that number.True / False
Correct Answer
TrueExplanation
If a consumer's relative calls in from a number that the collector is calling and claims ownership of the phone used to reach the consumer, and requests the calls to stop, the collectors are required to comply with the request and stop calling that number. Therefore, the statement "collectors must stop calls to that number" is true.Rate this question:
- 10.
The FDCPA is enforced by the Federal Trade Commission agencyTrue / False
Correct Answer
TrueExplanation
The FDCPA (Fair Debt Collection Practices Act) is indeed enforced by the Federal Trade Commission (FTC). The FTC is responsible for regulating and enforcing various consumer protection laws, including the FDCPA. This act sets guidelines and restrictions on how debt collectors can communicate with consumers and collect debts, aiming to prevent abusive and unfair practices. The FTC ensures compliance with the FDCPA by investigating complaints, taking legal actions against violators, and providing educational resources for consumers. Therefore, it is correct to say that the FDCPA is enforced by the Federal Trade Commission agency.Rate this question:
- 11.
Which is the best practice when receiving calls from debt collectors?
- A.
Screen your calls
- B.
Answer the call, then negotiate the best price to pay off the debt
- C.
Let the collectors blow up your answering machine
- D.
Have your kid always answer the phone
Correct Answer
B. Answer the call, then negotiate the best price to pay off the debtExplanation
The best practice when receiving calls from debt collectors is to answer the call and then negotiate the best price to pay off the debt. This approach allows you to address the issue directly and work towards a resolution. Screening calls may lead to missed opportunities for negotiation, while letting the collectors blow up your answering machine or having your kid always answer the phone are not effective or responsible ways to handle debt collection calls.Rate this question:
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- 12.
When talking to a collector, you do not have to give out your personal information, but you must confirm if you are indeed the person they are looking for by
- A.
Confirming some portion of Social Security # (Provide partial -optional)
- B.
Confirming correct address
- C.
Giving correct age / date of birth
- D.
All of the above
Correct Answer
D. All of the aboveExplanation
Collectors already have your private info. so you only confirm info. is correct to begin the negotiation processRate this question:
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- 13.
How much will 3rd party collectors accept to negotiate a payment in full?
- A.
Depends on type of day and mood of collector
- B.
They only accept payment owed in full
- C.
Whatever I want to pay
- D.
Depends on how much consumer have on hand
- E.
Both A and D
Correct Answer
E. Both A and DExplanation
3rd Party collectors get paid to call, so negotiate on their good days for the least possible, and pay that in full ASAP!Rate this question:
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- 14.
It is best to have minimum ___ % of the debt to negotiate an immediate payment in full with 3rd party debt collectors.
Correct Answer
40% is acceptable minimum and best to have it all at time of 3rd party negotiations and 75% when dealing with 1st party collectors
35% is possible depending on age of debt and how long it has been in collectionsExplanation
Negotiate! 40% is normally the lowest acceptable payment terms for payment in full with maybe option of 2-3 payments!Rate this question:
- 15.
It is better to use a debt settlement company than to negotiate debts myself
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
You are the best negotiator for your debts! You may pay a debt settlement company, but rules prohibit some 3rd party collectors from contact and fees will continue to be incurred by 3rd party collectors until settled or Payment by consumer.Rate this question:
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