CCP Collection Strategy & Escalation 3

Question 1

The 'waterfall' approach in settlement negotiations means:

Accepted Answer

Offering progressively larger discounts as accounts age deeper into delinquency

Answer

A waterfall settlement strategy authorizes collectors to offer higher discount levels as accounts become more delinquent, reflecting reduced expected recovery over time.

Question 2

Which of the following is a key indicator that an account should be placed in a 'do not call' status within the collections system?

Accepted Answer

The debtor has submitted a written cease-communication request under the FDCPA

Answer

A written cease-communication request legally obligates the collector to halt calls and other direct contact, requiring immediate system flagging.

Question 3

A 'promise-to-pay' (PTP) broken rate above 40% in a collections queue most likely indicates:

Accepted Answer

Collectors are accepting unrealistic payment commitments without ability-to-pay assessment

Answer

A high broken PTP rate signals that collectors are securing promises without validating debtor capacity, leading to commitments the debtor cannot keep.

Question 4

Under Regulation F (CFPB's FDCPA implementation), the default call frequency limit for debt collectors contacting a consumer about a single debt is:

Accepted Answer

No more than 7 calls within 7 consecutive days

Answer

Regulation F establishes a presumption of harassment if a collector places more than 7 telephone calls within any 7-day period to a consumer about a specific debt.

Question 5

In collections portfolio segmentation, a 'probability of default' (PD) score is most useful for:

Accepted Answer

Prioritizing collector effort toward accounts most likely to respond to outreach

Answer

PD scores help allocate collector resources by identifying which delinquent accounts have the best likelihood of curing, maximizing return on collection effort.

(CCP) Certified Credit Professional Practice Test

(CCP) Certified Credit Professional Practice Test

CCP Collection Strategy & Escalation 3