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

The FDCPA, enacted in 1977, regulates the behavior of third-party debt collectors and prohibits abusive, unfair, and deceptive practices.

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

Under the FDCPA, when a consumer disputes a debt in writing within 30 days, the collector must cease collection activities until it provides verification.

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 statute of limitations is the time window during which a creditor or collector can legally file a lawsuit to collect on a 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

The FDCPA prohibits collectors from calling before 8 AM or after 9 PM in the consumer's local time zone.

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 settlement involves negotiating with creditors to accept a lump-sum payment that is less than the total amount owed.

CCDS - Certified Consumer Debt Specialist Practice Test

CCDS - Certified Consumer Debt Specialist Practice Test

CCDS CCDS Negotiation & Collection Practices