CARS Industry Regulations & Compliance 3

Question 1

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

Accepted Answer

Larger participants in the debt collection market

Answer

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

Question 2

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

Accepted Answer

Self-help repossession

Answer

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.

Question 3

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

Accepted Answer

At least 72 hours before attempting repossession

Answer

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

Question 4

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

Accepted Answer

Fair Credit Reporting Act

Answer

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

Question 5

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

Accepted Answer

The right to redeem the collateral and the sale date

Answer

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

(CARS) Certified Asset Recovery Specialist Practice Test

(CARS) Certified Asset Recovery Specialist Practice Test

CARS Industry Regulations & Compliance 3