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
What is a 'hardship program' offered by credit card issuers?
Answer: A temporary arrangement offering reduced interest rates or payments to struggling consumers
Hardship programs are temporary arrangements offered by creditors that may include reduced interest rates, waived fees, or lower minimum payments for consumers facing financial difficulty.
In debt negotiation, what is a 'pay-for-delete' agreement?
Answer: A negotiated arrangement where the creditor agrees to remove a negative entry from the credit report in exchange for payment
A pay-for-delete agreement is a negotiated deal where a creditor or collector agrees to remove a negative tradeline from the credit report upon receiving payment.
Which of the following best describes 'zombie debt'?
Answer: Old, time-barred debt that collectors attempt to revive through collection efforts
Zombie debt refers to old debts, often past the statute of limitations, that collectors attempt to revive, sometimes illegally pressuring consumers to pay.
What is the legal term for a situation where a debtor's bank account is frozen or funds are seized to satisfy a court judgment?
Answer: Bank levy
A bank levy allows a creditor with a court judgment to seize funds directly from a debtor's bank account to satisfy the debt.
When a debt collector contacts a third party (e.g., a neighbor or employer) about a consumer's debt, what is generally permitted under the FDCPA?
Answer: Contacting third parties only to locate the consumer's address, phone, or employer without disclosing the debt
The FDCPA permits collectors to contact third parties solely to obtain location information, but they cannot disclose that they are collecting a debt.
Which of the following is TRUE regarding the Credit Repair Organizations Act (CROA)?
Answer: It prohibits credit repair organizations from charging fees before services are fully performed
CROA prohibits credit repair organizations from collecting any fees until all promised services have been fully performed.