CCP Collections & Recovery Strategies 2

Question 1

Under the Fair Debt Collection Practices Act (FDCPA), how many times may a debt collector call a consumer in a seven-day period regarding a specific debt?

Accepted Answer

Once

Answer

The FDCPA's 2021 rule limits collectors to one call per debt per seven-day period to prevent harassment.

Question 2

Which collection strategy involves selling a portfolio of delinquent accounts to a third-party buyer at a discount?

Accepted Answer

Debt sale

Answer

A debt sale permanently transfers ownership of the accounts to a debt buyer for a lump-sum price below face value.

Question 3

A consumer submits a written dispute within 30 days of receiving an initial validation notice. What must the collector do?

Accepted Answer

Cease collection activity until verification is provided

Answer

Upon written dispute, the FDCPA requires the collector to cease collection and mail verification before resuming.

Question 4

In skip tracing, what is the PRIMARY purpose of using address verification services?

Accepted Answer

To locate a debtor who has moved without leaving contact information

Answer

Skip tracing uses address and contact databases to locate debtors who have relocated and are difficult to reach.

Question 5

Which metric best measures the efficiency of a collections department's recovery efforts?

Accepted Answer

Recovery Rate

Answer

Recovery rate — the percentage of delinquent balances actually collected — directly measures collections effectiveness.

(CCP) Certified Credit Professional Practice Test

(CCP) Certified Credit Professional Practice Test

CCP Collections & Recovery Strategies 2