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CR5 - Fair Debt Collections Practices Act questions with complete solutions
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CR5 - Fair Debt Collections Practices Act questions with complete solutions
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CR5 - Fair Debt Collections Practices ActC
A822DF6473EF4A93A22D811DF600E70A
Not answered. The correct answer is c. A is incorrect because contacting a third party for location
information only does not violate the FDCPA. B is incorrect because contacting a third party to discuss a
debt or obtain information other than location information does violate the FDCPA. D is incorrect
because a debt collector may not discuss the debt with a third party unless the debtor has given
permission to do so. - correct answer ✔✔1. Is a debt collector allowed to contact a debtor's employer
asking for that person's address and phone number?
A. No, contacting a third party violates the Fair Debt Collection Practices Act (FDCPA) unless the debtor
has given express written consent
B. No, only a request for information other than ''location information'' is allowed
C. Yes, a debt collector may contact a third-party for location information (consumer's place of abode
and telephone number at such place)
D. Yes, as long as the collection agency informs the third party about the nature of the debt and the
amount owed
C
676D9169AFDA4D63B6C8EDCB8A6587EC
Not answered. The correct answer is c. A, B, and D are incorrect because a debt collector must apply the
payments as the consumer instructs. - correct answer ✔✔2. Joan is a debt collector and has been trying
to collect two debts from an individual consumer. If the consumer makes a payment, what action must
Joan take?
A. Apply any payment to the disputed debt first, and then to the one the consumer admits owing
B. Combine the debts into one large debt and apply any payments to the total amount owed
C. Apply any payment made to the debt the consumer selects
D. Collect only one debt at a time
A
6A13379929B24E75A71A9AF92D57ADD9
,Not answered. The correct answer is a. B, C, and D are incorrect because authority for this rule was
transferred to the Bureau. - correct answer ✔✔3. The Dodd-Frank Act transferred authority for
rulemaking regarding debt collectors' conduct under the Fair Debt Collection Practices Act (FDCPA) to
which entity?
A. The Consumer Financial Protection Bureau (Bureau)
B. The Office of the Comptroller of the Currency (OCC)
C. The Federal Deposit Insurance Corporation (FDIC)
D. The Federal Reserve
C
36540F0AA95C4314A078D76C988D7B81
Not answered. The correct answer is c. A is incorrect because the law is intended to protect debtors, not
creditors. B is incorrect because the law allows consumers to validate a debt but does not require that
they do so. D is incorrect because the FDCPA applies to 3rd party debt collectors. It does not protect
banks from them. - correct answer ✔✔4. A new employee asks you about the purpose of Fair Debt
Collection Practices Act (FDCPA). What should you tell the employee?
A. It is a law passed to protect creditors in collecting debts
B. It is a law passed to ensure that consumers validate a debt
C. It is a law passed to protect consumers from abusive debt collectors
D. It is a law passed to protect banks from third party debt collectors
D
7D3CFC784B2A46FDA700136CCF9C0EFB
Not answered. The correct answer is d. A is incorrect because the FDCPA gives consumer debtors
multiple rights, even when the debt is legitimate. B is incorrect because the FDCPA allows class action
lawsuits. C is incorrect because a debtor cannot refuse to pay a legitimate debt. - correct answer ✔✔5. A
debt collector has violated the law in his attempt to collect money from Karen for a past due motorcycle
loan. Which action may Karen take?
A. If Karen owes the amount being collected, she has no rights
B. Sue the debtor individually only (class action suits not allowed under the Fair Debt Collection
Practices Act [FDCPA])
C. Refuse to pay the debt
, D. Karen has the right to sue a collector in a state or federal court within one year from the date the law
was violated
B
D7EEFF4863354EBD8EAB2A1D7CB97F55
Not answered. The correct answer is b. A is incorrect because the FDCPA does not apply to the original
creditor. C is incorrect because an individual, such as an attorney collecting a debt for another, is
classified as a debt collector under the FDCPA. D is incorrect because the FDCPA applies to third parties
collecting debts. - correct answer ✔✔6. Which is the correct definition of "debt collector" under the Fair
Debt Collection Practices Act (FDCPA)?
A. The original creditor collecting its own debt
B. A debt collector is anybody who regularly collects debts owed to another
C. A commercial entity such as Acme Debt collection but not an individual, such as an attorney collecting
debts for another
D. Any entity or person collecting a debt
D
A1D7228DCD5B4452963D956FD5723B76
Not answered. The correct answer is d. A is incorrect because the debtor must put this request in
writing. B is incorrect because notifying the collector in writing to stop contacting the debtor does not
eliminate the debt. C is incorrect because the FDCPA does not give a consumer the right not to pay any
legitimate debt. - correct answer ✔✔7. Karen's motorcycle loan with Vigilant Bank has been turned over
to a collection agency. What does the Fair Debt Collection Practices Act (FDCPA) give Karen the right to
do?
A. Verbally demand that the third-party debt collector terminate all further communications
B. Send a letter to the debt collector to demand termination of all future collection efforts, including the
ability of the debt collector to sue to collect the debt
C. Refuse to pay any legitimate debt
D. Notify the debt collector in writing to cease contact
D
5C34AA53CBD24A378BE925AD92AB49DC
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