Advanced Techniques & Methods Flashcards
7 cards from real CARS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Advanced Techniques & Methods flashcards as text
Which advanced skip-trace database source is MOST likely to reveal a debtor's current employer when all other sources are stale?
Answer: State new-hire reporting databases accessed through permissible-purpose channels
State new-hire databases are updated frequently by employers as required by law and are accessible through permissible-purpose channels, making them highly reliable for current employment data.
A debtor parks a vehicle inside a self-storage unit and locks it. A recovery agent may NOT use self-help repossession here because:
Answer: Cutting or circumventing the lock would constitute a breach of peace or criminal trespass
Forcing a storage unit lock constitutes property damage and trespass, both of which qualify as a breach of peace that invalidates the self-help repossession right.
Under UCC 9-614, the notice of disposition sent to a debtor after repossession must include all of the following EXCEPT:
Answer: The debtor's original credit score at loan origination
UCC 9-614 requires description of collateral, method of disposition, and time/place information, but the debtor's original credit score is not a required element.
A recovery agent encounters a debtor who verbally objects to the repossession but does not physically resist. Under the 'breach of peace' standard, the agent should:
Answer: Continue the repossession since verbal objection alone does not constitute breach of peace in all jurisdictions
Many jurisdictions hold that a verbal objection alone does not automatically create a breach of peace, though agents must know their specific state law as some states require cessation upon any objection.
The 'deficiency balance' in an auto loan repossession is calculated as:
Answer: The outstanding loan balance plus allowable fees minus the net proceeds from collateral disposition
The deficiency is what the borrower still owes after the collateral is sold — the remaining loan balance plus allowable costs, reduced by the sale proceeds.
When recovering a vehicle involved in an active insurance fraud investigation, the recovery agent should FIRST:
Answer: Contact the lender to coordinate with their fraud and legal departments before taking the vehicle
Vehicles involved in fraud investigations may be subject to evidence-preservation orders or other legal holds; coordinating with the lender's legal team prevents the agent from inadvertently obstructing an investigation.
A 'redemption block' strategy sometimes used by debtors involves:
Answer: Paying the redemption amount with a check that is later stopped or dishonored
Some debtors tender a redemption payment with a check they then stop, exploiting the time lag between payment and clearance to reclaim the vehicle and delay the process.