CCDS CCDS Negotiation & Collection Practices

Question 1

Which federal law governs third-party debt collectors and prohibits abusive collection practices?

Accepted Answer

Fair Debt Collection Practices Act (FDCPA)

Answer

Truth in Lending Act (TILA)

Answer

Equal Credit Opportunity Act (ECOA)

Answer

Fair Credit Billing Act (FCBA)

Question 2

Under the FDCPA, within how many days must a debt collector provide verification of a debt after the consumer requests it?

Accepted Answer

Upon request, the collector must cease collection until verification is mailed

Answer

15 days

Answer

30 days

Answer

60 days

Question 3

What is the 'statute of limitations' on debt collection?

Accepted Answer

The time period within which a creditor can sue to collect a debt

Answer

The time a collector has to call a debtor before 8 AM

Answer

The maximum number of collection calls allowed per week

Answer

The legal cap on interest rates charged on consumer debt

Question 4

Under the FDCPA, debt collectors are prohibited from calling consumers at what times?

Accepted Answer

Before 8 AM or after 9 PM local time

Answer

Before 9 AM or after 8 PM local time

Answer

Before 7 AM or after 10 PM local time

Answer

Before 8 AM or after 8 PM local time

Question 5

Which negotiation strategy involves making a lump-sum offer to a creditor to settle a debt for less than the full balance?

Accepted Answer

Debt settlement

Answer

Debt consolidation

Answer

Debt avalanche

Answer

Loan modification

Question 6

What is a 'cease and desist' letter in the context of debt collection?

Accepted Answer

A written request from a consumer asking a collector to stop contacting them

Answer

A letter demanding the debtor pay immediately or face legal action

Answer

A court order halting a wage garnishment

Answer

A settlement offer from a creditor