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. The Consumer Financial Protection Bureau (CFPB) has authority to supervise asset recovery companies that qualify as:

    Answer: Larger participants in the debt collection market

    The CFPB defines 'larger participants' in the debt collection market and subjects them to supervisory examination for compliance.

  2. Under UCC Article 9, a secured creditor's right to repossess collateral upon default is known as:

    Answer: Self-help repossession

    UCC Article 9 grants secured creditors the right of self-help repossession, allowing them to take collateral without a court order if it can be done without breaching the peace.

  3. A recovery agent operating in a state that requires mandatory pre-repossession notice to the debtor must send this notice:

    Answer: At least 72 hours before attempting repossession

    States requiring pre-repossession notice typically mandate that notice be provided at least 72 hours before the repossession attempt.

  4. Which federal law restricts the use of consumer reports (such as credit reports) in skip tracing activities?

    Answer: Fair Credit Reporting Act

    The Fair Credit Reporting Act (FCRA) governs permissible purposes for accessing consumer reports, including those used in skip tracing for debt collection.

  5. After repossessing a vehicle, a lienholder is generally required by state law to send the debtor a post-repossession notice that includes:

    Answer: The right to redeem the collateral and the sale date

    Most states require creditors to notify debtors of their right to redeem the collateral and provide the date of the planned sale.

  6. An asset recovery company that uses a GPS tracking device placed on a vehicle by the lienholder to locate collateral must ensure compliance with:

    Answer: State privacy and electronic surveillance laws

    Using GPS tracking devices to locate collateral may implicate state privacy laws and electronic surveillance statutes that vary by jurisdiction.

  7. Under the FDCPA, a debt collector is prohibited from communicating with a consumer regarding a debt at which times?

    Answer: Before 8 a.m. or after 9 p.m. local time

    The FDCPA prohibits debt collectors from contacting consumers before 8 a.m. or after 9 p.m. in the consumer's local time zone.