Practice Test Geeks(CARS) Certified Asset Recovery Specialist Practice Test
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Asset Recovery Specialist Legal Compliance 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 Legal Compliance flashcards as text

  1. Under the Fair Debt Collection Practices Act (FDCPA), which of the following is a permissible time to contact a debtor by phone?

    Answer: 2:00 PM local time

    The FDCPA restricts calls to between 8:00 AM and 9:00 PM local time; 2:00 PM falls within this window.

  2. A debtor sends a written cease communication request. Under the FDCPA, which action is still legally permitted after receiving it?

    Answer: Notifying the debtor of a planned lawsuit

    After a cease communication notice, a collector may still notify the debtor of specific actions such as filing suit.

  3. Which federal law governs the repossession of motor vehicles in the context of secured lending and primarily requires 'no breach of the peace'?

    Answer: Uniform Commercial Code (UCC) Article 9

    UCC Article 9 governs secured transactions and permits self-help repossession only if it can be accomplished without a breach of the peace.

  4. Which statement best describes 'skip tracing' within legal compliance boundaries for asset recovery?

    Answer: Using lawfully obtained public records and databases to locate a debtor

    Skip tracing must rely on permissible sources such as public records, credit headers, and licensed databases to remain legally compliant.

  5. Under the Gramm-Leach-Bliley Act (GLBA), asset recovery companies that obtain nonpublic personal information must:

    Answer: Safeguard it and limit disclosure to permitted purposes

    GLBA requires financial institutions and their affiliates to protect nonpublic personal information and restrict its use and sharing.

  6. When a repossession agent encounters a debtor who verbally objects to the repossession and stands in front of the vehicle, the legally correct action is to:

    Answer: Abort the repossession to avoid a breach of the peace

    Physical or verbal confrontation constitutes a breach of the peace under UCC Article 9, requiring the agent to abandon the repossession attempt.

  7. A lender must provide a 'right to cure' notice to a borrower before repossession in states that require it. What does this notice typically allow the borrower to do?

    Answer: Bring the account current within a specified period to avoid repossession

    A right-to-cure notice gives the borrower an opportunity to reinstate the loan by paying past-due amounts within the state-mandated timeframe.