Asset Recovery Specialist Asset Investigation & Identification 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 Asset Recovery Specialist Asset Investigation & Identification flashcards as text
Under the Gramm-Leach-Bliley Act (GLBA), how may a financial institution share non-public personal information (NPI) with a repossession company?
Answer: As an exception for processing and servicing a financial transaction for the institution
GLBA allows sharing NPI with non-affiliated third parties when necessary to process or service a transaction the consumer requested or authorized, which includes recovery of collateral.
When a debtor files for Chapter 13 bankruptcy, what IMMEDIATE effect does it have on a pending repossession?
Answer: An automatic stay is imposed, halting all collection and recovery activity
Upon any bankruptcy filing, an automatic stay under 11 U.S.C. § 362 takes effect immediately, prohibiting creditors from continuing or initiating repossession without court relief.
An investigator discovers a debtor owns cryptocurrency assets. Which method is MOST appropriate for identifying holdings?
Answer: Reviewing blockchain explorer data for known wallet addresses and subpoenaing exchange records
Blockchain explorers can trace transactions if wallet addresses are known, and subpoenaing U.S.-based exchanges compels disclosure of account holders and balances.
A 'breach of the peace' during voluntary or involuntary repossession MOST likely occurs when:
Answer: The debtor or another person verbally objects and the agent continues the repossession
Courts have consistently held that continuing a repossession over the clear oral protest of the debtor or another party constitutes a breach of the peace under UCC Article 9.
In the context of asset identification, what does a UCC-1 financing statement filed at the Secretary of State's office establish?
Answer: That a creditor has a perfected security interest in described personal property collateral
A UCC-1 financing statement perfects a creditor's security interest in personal property, giving public notice of the lien and establishing priority over later creditors.
Which principle guides an asset recovery specialist in determining whether to pursue a deficiency balance after collateral is sold?
Answer: A cost-benefit analysis weighing the likelihood of collection against litigation and compliance costs
Pursuing a deficiency is a business decision; specialists weigh the collectible amount, debtor's ability to pay, statute of limitations, and legal costs before recommending action.
What is the PRIMARY purpose of conducting a lien search before purchasing a repossessed vehicle at auction?
Answer: To confirm the title is free of undisclosed encumbrances that could affect marketable title
A lien search through the DMV and UCC filings ensures no undisclosed security interests, tax liens, or judgments remain attached to the vehicle that would transfer to the buyer.