CARS Foundational Concepts & Principles 2

Question 1

Under Article 9 of the UCC, a secured party may repossess collateral after default without judicial process only if they can do so:

Accepted Answer

Without breaching the peace

Answer

UCC Article 9 permits self-help repossession only when it can be accomplished without a breach of the peace.

Question 2

A 'deficiency balance' in asset recovery refers to:

Accepted Answer

The amount still owed after the collateral is sold and proceeds applied to the debt

Answer

A deficiency balance is the remaining debt after collateral sale proceeds are applied to what the debtor owes.

Question 3

Which federal act primarily governs the conduct of third-party debt collectors and affects asset recovery agents when collecting on accounts?

Accepted Answer

Fair Debt Collection Practices Act (FDCPA)

Answer

The FDCPA regulates third-party debt collectors, imposing rules on communication, harassment, and misrepresentation relevant to recovery agents.

Question 4

In asset recovery, 'skip tracing' is best defined as:

Accepted Answer

Locating a debtor or collateral using investigative research techniques

Answer

Skip tracing is the investigative process of locating a debtor or collateral through public records, databases, and other sources.

Question 5

A creditor's right to 'strict foreclosure' under UCC Article 9 allows the secured party to:

Accepted Answer

Retain the collateral in full satisfaction of the debt

Answer

Strict foreclosure under UCC 9-620 allows a secured party to retain collateral as full satisfaction of the debt, subject to debtor consent and other conditions.

(CARS) Certified Asset Recovery Specialist Practice Test

(CARS) Certified Asset Recovery Specialist Practice Test

CARS Foundational Concepts & Principles 2