Practice Test Geeks(CARS) Certified Asset Recovery Specialist Practice Test
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Industry Regulations & 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 Industry Regulations & Compliance flashcards as text

  1. Under the Fair Debt Collection Practices Act (FDCPA), which entity is primarily regulated?

    Answer: Third-party debt collectors

    The FDCPA primarily regulates third-party debt collectors, not original creditors collecting debts owed directly to them.

  2. A repossession agent discovers a consumer's vehicle contains personal property at the time of repossession. Under most state laws, the agent must:

    Answer: Retain the property and notify the consumer of its availability

    Most state laws require repossession agents to inventory and retain personal property found in a repossessed vehicle and notify the debtor of how to retrieve it.

  3. Which federal regulation governs the repossession of vehicles financed through consumer credit agreements, particularly regarding notice requirements?

    Answer: Regulation Z (Truth in Lending Act)

    Regulation Z, implementing the Truth in Lending Act, governs consumer credit agreements including disclosure requirements related to default and repossession.

  4. A 'breach of the peace' during a self-help repossession would most likely occur if the repossession agent:

    Answer: Proceeds with repossession after the debtor verbally objects

    Continuing a repossession after a debtor verbally objects constitutes a breach of the peace, which can invalidate the repossession and expose the creditor to liability.

  5. Under the Gramm-Leach-Bliley Act (GLBA), asset recovery companies must:

    Answer: Protect the nonpublic personal information of consumers

    The GLBA requires financial institutions and affiliated companies, including asset recovery firms, to safeguard consumers' nonpublic personal information.

  6. Which type of license is most commonly required specifically for repossession agents operating under their own authority in most U.S. states?

    Answer: Repossession or collateral recovery license

    Most U.S. states require repossession or collateral recovery agents to hold a specific repossession license separate from a general PI license.

  7. When a creditor sells a charged-off account to a debt buyer, the debt buyer's right to collect is derived from:

    Answer: An assignment of the original creditor's rights

    Debt buyers acquire the right to collect through an assignment of the original creditor's rights under the underlying agreement.