Communication & Documentation 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 Communication & Documentation flashcards as text
Under the FDCPA, collection calls to a consumer's workplace are prohibited when:
Answer: The collector knows or has reason to know the employer prohibits such calls
The FDCPA prohibits contacting a consumer at work if the collector knows the employer forbids personal calls, to avoid jeopardizing the debtor's employment.
A repossession company's internal case management notes should be written in a manner that assumes:
Answer: They could be subpoenaed and reviewed by a court, regulator, or opposing counsel
Case management notes are discoverable in litigation, so they must be professional, factual, and free of inappropriate content from the start.
When a lienholder instructs a recovery agent to 'hold' a repossessed vehicle pending further instruction, how should this be documented?
Answer: Record the instruction in writing, including the date, time, and name of the lienholder representative giving the instruction
Written documentation of hold instructions protects the agent from liability for storage costs or delays and creates a clear record of the lienholder's directives.
Which piece of documentation is typically required to release a repossessed vehicle to a third party who claims to be the true owner (not the borrower)?
Answer: Proof of ownership such as a title, and written authorization from the lienholder
The agent must verify ownership with official documents and get lienholder authorization before releasing collateral to any third party to avoid wrongful release liability.
In which scenario should a repossession agent immediately stop and document the situation rather than completing the repossession?
Answer: The debtor physically blocks the vehicle and verbally threatens the agent
Physical confrontation or threats constitute a breach of peace, requiring the agent to abort and document rather than risk injury or legal liability.
A 'notice of deficiency' must be sent within a specific time after the sale of repossessed collateral primarily to:
Answer: Preserve the creditor's right to collect any remaining balance owed after the sale proceeds are applied
Timely deficiency notices are legally required in most states to maintain the creditor's right to pursue collection of the remaining balance after collateral sale.
Which practice best ensures communication logs between a recovery agent and a client are accurate and admissible?
Answer: Recording all communications contemporaneously with timestamps at the time they occur
Contemporaneous records created at the time of communication with accurate timestamps are the most reliable and legally defensible documentation.