CARS Asset Recovery Specialist Legal Compliance 2

Question 1

Under the Fair Debt Collection Practices Act (FDCPA), which of the following is a permissible time to contact a debtor by phone?

Accepted Answer

2:00 PM local time

Answer

The FDCPA restricts calls to between 8:00 AM and 9:00 PM local time; 2:00 PM falls within this window.

Question 2

A debtor sends a written cease communication request. Under the FDCPA, which action is still legally permitted after receiving it?

Accepted Answer

Notifying the debtor of a planned lawsuit

Answer

After a cease communication notice, a collector may still notify the debtor of specific actions such as filing suit.

Question 3

Which federal law governs the repossession of motor vehicles in the context of secured lending and primarily requires 'no breach of the peace'?

Accepted Answer

Uniform Commercial Code (UCC) Article 9

Answer

UCC Article 9 governs secured transactions and permits self-help repossession only if it can be accomplished without a breach of the peace.

Question 4

Which statement best describes 'skip tracing' within legal compliance boundaries for asset recovery?

Accepted Answer

Using lawfully obtained public records and databases to locate a debtor

Answer

Skip tracing must rely on permissible sources such as public records, credit headers, and licensed databases to remain legally compliant.

Question 5

Under the Gramm-Leach-Bliley Act (GLBA), asset recovery companies that obtain nonpublic personal information must:

Accepted Answer

Safeguard it and limit disclosure to permitted purposes

Answer

GLBA requires financial institutions and their affiliates to protect nonpublic personal information and restrict its use and sharing.

(CARS) Certified Asset Recovery Specialist Practice Test