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
When a vehicle is repossessed and later sold at a private sale, the UCC Article 9 requires the sale to be conducted in a:
Answer: Commercially reasonable manner
UCC Article 9 requires that every aspect of a repossessed collateral sale, including method, time, place, and terms, must be commercially reasonable.
A creditor who repossesses and sells collateral for less than the outstanding loan balance may pursue the debtor for the remaining amount through a:
Answer: Deficiency judgment
A deficiency judgment allows a creditor to sue the debtor for the difference between the sale proceeds and the total amount owed.
Which organization sets professional standards and a code of ethics specifically for the collateral recovery industry in the United States?
Answer: Allied Finance Adjusters (AFA)
Allied Finance Adjusters (AFA) is a national trade association that establishes professional standards and a code of ethics for collateral recovery professionals.
If a debtor files for Chapter 7 bankruptcy, the automatic stay provision generally:
Answer: Prohibits creditors from continuing collection or repossession actions
The automatic stay in bankruptcy immediately halts all collection efforts, including repossession, until the court grants relief from the stay or the case is resolved.
A repossession agent who enters a locked or gated private garage without permission to repossess a vehicle may be liable for:
Answer: Trespassing and potentially criminal breaking and entering
Entering a locked or enclosed structure without permission can constitute trespassing or criminal breaking and entering under state law.
Under the Telephone Consumer Protection Act (TCPA), a debt collector using an autodialer to contact a debtor's cell phone must have:
Answer: Prior express consent from the consumer
The TCPA requires prior express consent from the consumer before using an autodialer or prerecorded message to contact a mobile phone.
A state law that is more protective of consumers than the FDCPA will:
Answer: Coexist with the FDCPA, and collectors must comply with both
The FDCPA does not preempt state laws that provide greater consumer protections; debt collectors must comply with both federal and applicable state law.