Practice Test GeeksCCDS - Certified Consumer Debt Specialist Practice Test
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CCDS Negotiation & Collection Practices Flashcards

6 cards from real CCDS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 6 CCDS Negotiation & Collection Practices flashcards as text

  1. What is 'wage garnishment' in the context of debt collection?

    Answer: A court-ordered withholding of a portion of a debtor's wages to satisfy a debt

    Wage garnishment is a legal process whereby a creditor with a court judgment can direct an employer to withhold part of the debtor's wages.

  2. Which of the following best describes the 'debt avalanche' repayment method?

    Answer: Paying the debt with the highest interest rate first to minimize total interest

    The debt avalanche method prioritizes paying the highest-interest debt first, minimizing the total interest paid over time.

  3. Under the FDCPA, which of the following is a prohibited debt collection practice?

    Answer: Threatening to take legal action the collector cannot or does not intend to take

    The FDCPA prohibits collectors from making false threats of legal action that they have no intention or legal ability to carry out.

  4. What is the primary role of a CCDS-certified specialist when negotiating with creditors on behalf of a client?

    Answer: To advocate for the client's financial interests within ethical and legal boundaries

    A CCDS specialist advocates ethically for clients, helping negotiate with creditors while remaining within legal and professional boundaries.

  5. What is a 'judgment lien' in debt collection?

    Answer: A lien placed on a debtor's property after a court judgment in favor of the creditor

    A judgment lien results from a court ruling in the creditor's favor, allowing them to attach the lien to the debtor's real property.

  6. Which CFPB rule, effective in 2021, updated the FDCPA to address digital communication methods in debt collection?

    Answer: Regulation F

    Regulation F, the CFPB's 2021 update to the FDCPA, established rules for electronic communications including email and text messaging in debt collection.