CARS Asset Recovery Specialist Asset Investigation & Identification 2

Question 1

When conducting a skip trace to locate a debtor's new address, which database is MOST commonly used as a starting point?

Accepted Answer

Credit bureau header information

Answer

Credit bureau header information (name, address, employment) is a primary skip-trace resource because it is updated whenever a consumer applies for credit.

Question 2

A vehicle is registered to an LLC rather than an individual debtor. What is the investigator's BEST next step?

Accepted Answer

Research the LLC's registered agent and member/officer filings to link the debtor

Answer

Researching LLC formation documents through the Secretary of State identifies members and officers, often revealing the debtor as the beneficial owner of the vehicle.

Question 3

Which of the following best describes 'asset hiding' in the context of collateral investigation?

Accepted Answer

A debtor selling collateral below market value to a third party to obstruct recovery

Answer

Asset hiding typically involves transferring collateral to a third party at below-market value specifically to frustrate a secured creditor's recovery efforts.

Question 4

Under the Fair Debt Collection Practices Act (FDCPA), which action is PROHIBITED when attempting to locate a debtor?

Accepted Answer

Telling a third party the purpose of the call is debt collection

Answer

The FDCPA prohibits disclosing to third parties that the contact is related to debt collection when obtaining location information.

Question 5

An asset investigation reveals that a debtor recently transferred a titled vehicle to a spouse for $1. What legal doctrine may allow a creditor to challenge this transfer?

Accepted Answer

Fraudulent conveyance (voidable transfer)

Answer

A transfer made for inadequate consideration to an insider while a debtor is insolvent can be unwound as a fraudulent or voidable conveyance under state and federal law.

(CARS) Certified Asset Recovery Specialist Practice Test

(CARS) Certified Asset Recovery Specialist Practice Test

CARS Asset Recovery Specialist Asset Investigation & Identification 2