Communication & Stakeholder Engagement Flashcards

Under the FDCPA, how can a consumer stop a third-party debt collector from contacting them?

Answer: By sending a written request asking the collector to cease communication

A written cease-communication request generally requires the collector to stop contact, except for limited notices such as a lawsuit notice.

Which statement correctly describes the agent's role toward the client?

Answer: The agent negotiates on the client's behalf within the authorization granted, without giving legal advice

Debt relief agents act as authorized negotiators and must not practice law unless licensed.

A client's spouse calls asking for details about the client's account. What should the agent do?

Answer: Check that the client has given written authorization before disclosing any information

Client privacy rules (including GLBA principles) require authorization before sharing nonpublic personal information with third parties.

What is the best way to communicate a settlement offer to a client?

Answer: In writing, with the creditor, amount, payment schedule, fee, and deadline to accept

Clear written terms let the client give informed consent and create a record.

A prospect asks whether a debt relief program is better than a credit counseling debt management plan (DMP). What is the best response?

Answer: Explain the differences in cost, credit impact, and duration fairly so the prospect can choose what fits their situation

Ethical engagement means presenting alternatives fairly and recommending what suits the consumer.

Which stakeholder typically holds and disburses client settlement funds in a compliant program?

Answer: An independent dedicated account administrator at an insured financial institution

The TSR requires funds to be held at an insured institution by an administrator that is not owned by, controlled by, or affiliated with the provider.

A client misses two scheduled deposits. What is the most appropriate communication?

Answer: Reach out promptly, explain how missed deposits affect settlements, and discuss adjusting the plan

Proactive outreach and plan adjustments help keep clients enrolled and give them realistic expectations.