CCP Collection Strategy & Escalation 2

Question 1

Which collection strategy segment prioritizes accounts with the highest balance and shortest delinquency period?

Accepted Answer

High-value early-stage accounts

Answer

High-value early-stage accounts yield the greatest recovery return since balances are large and cure rates are still high before deep delinquency sets in.

Question 2

Under the FDCPA, a debt collector who receives a written cease-communication request must:

Accepted Answer

Stop all contact except to notify of specific intended actions

Answer

The FDCPA requires cessation of all communication once a written cease request is received, with narrow exceptions such as notifying the consumer of legal action.

Question 3

A 'right-party contact rate' metric in collections primarily measures:

Accepted Answer

The percentage of calls reaching the actual debtor

Answer

Right-party contact rate tracks how often collectors successfully reach the actual debtor rather than a third party or voicemail, directly influencing collection effectiveness.

Question 4

When a creditor sells a delinquent account to a debt buyer, what typically happens to the original account on the debtor's credit report?

Accepted Answer

The original account is charged off and a new tradeline from the buyer may appear

Answer

The original creditor reports a charge-off and the debt buyer may add a separate collection tradeline, which can negatively impact credit scores twice.

Question 5

In an escalation matrix, which condition most commonly triggers transfer from a pre-charge-off queue to a legal referral queue?

Accepted Answer

Account reaches 150-180 days past due with no payment arrangement

Answer

Legal referral typically occurs when an account reaches the 150-180 day delinquency window without resolution, as charge-off is imminent and legal recovery is the next viable option.

(CCP) Certified Credit Professional Practice Test

(CCP) Certified Credit Professional Practice Test

CCP Collection Strategy & Escalation 2