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
Which federal law governs third-party debt collectors and prohibits abusive collection practices?
Answer: Fair Debt Collection Practices Act (FDCPA)
The FDCPA, enacted in 1977, regulates the behavior of third-party debt collectors and prohibits abusive, unfair, and deceptive practices.
Under the FDCPA, within how many days must a debt collector provide verification of a debt after the consumer requests it?
Answer: Upon request, the collector must cease collection until verification is mailed
Under the FDCPA, when a consumer disputes a debt in writing within 30 days, the collector must cease collection activities until it provides verification.
What is the 'statute of limitations' on debt collection?
Answer: The time period within which a creditor can sue to collect a debt
The statute of limitations is the time window during which a creditor or collector can legally file a lawsuit to collect on a debt.
Under the FDCPA, debt collectors are prohibited from calling consumers at what times?
Answer: Before 8 AM or after 9 PM local time
The FDCPA prohibits collectors from calling before 8 AM or after 9 PM in the consumer's local time zone.
Which negotiation strategy involves making a lump-sum offer to a creditor to settle a debt for less than the full balance?
Answer: Debt settlement
Debt settlement involves negotiating with creditors to accept a lump-sum payment that is less than the total amount owed.
What is a 'cease and desist' letter in the context of debt collection?
Answer: A written request from a consumer asking a collector to stop contacting them
A cease and desist letter is a written request from a consumer directing a debt collector to stop all contact, which collectors must honor under the FDCPA.