Collections & Recovery Strategies Flashcards
7 cards from real CCP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Collections & Recovery Strategies flashcards as text
Which collections communication channel has the highest regulatory risk of creating a third-party disclosure violation under the FDCPA?
Answer: Voicemail left on a shared home phone
Voicemails on shared lines risk being heard by non-authorized third parties, constituting an unlawful third-party disclosure.
A creditor's policy requires placing an account with an external collector after 90 days past due. This threshold is known as the:
Answer: Placement threshold
The placement threshold defines the delinquency stage at which internal collections hand off accounts to external agencies.
Under the FDCPA, a consumer can stop all collector communications by:
Answer: Sending a written cease-communication request
A written cease-communication (cease-and-desist) letter legally obligates the collector to stop all contact except for specific permitted communications.
The concept of 'debt re-aging' is problematic because it:
Answer: Resets the seven-year credit reporting clock, making old debts appear newer
Illegal re-aging occurs when a collector falsely updates the delinquency date to extend negative credit reporting beyond the lawful 7-year period.
Which approach involves contacting a debtor's neighbor or relative solely to obtain the debtor's location information?
Answer: Third-party contact for location information
The FDCPA permits limited third-party contact to locate a debtor but prohibits revealing the debt or contacting the same third party more than once.
A debtor enters a Chapter 13 repayment plan. What immediately restricts the creditor's collection activity?
Answer: The automatic stay
Filing bankruptcy triggers an automatic stay under 11 U.S.C. § 362, immediately halting most collection actions against the debtor.
In portfolio management, 'vintage analysis' in collections refers to:
Answer: Grouping accounts by origination period to compare delinquency and loss patterns
Vintage analysis segments credit portfolios by origination cohort to reveal how different underwriting periods perform over time.