Ethics, Professionalism & Risk Management Flashcards

Which statement about suing or threatening to sue on a time-barred debt is correct under Regulation F?

Answer: It is prohibited for a debt collector to bring or threaten a legal action on a time-barred debt

Regulation F §1006.26(b) prohibits debt collectors from suing or threatening to sue on time-barred debts.

A collector accidentally leaves a voicemail disclosing the debt on a shared family answering machine. What Regulation F concept is designed to avoid this risk?

Answer: The 'limited-content message'

Regulation F defines a limited-content message that is not a 'communication,' allowing voicemails that avoid third-party disclosure.

Which FDCPA defense may protect a collector from liability for an unintentional violation?

Answer: The bona fide error defense, if the violation resulted from an error despite reasonable procedures to avoid it

FDCPA §813(c) allows a bona fide error defense when the violation was unintentional and occurred despite procedures reasonably adapted to prevent it.

An agency discovers a data breach exposing consumer Social Security numbers. Which action best reflects sound risk management?

Answer: Contain the breach, follow the incident response plan, and meet applicable notification laws

Incident response plans should contain the breach, preserve evidence, and satisfy state breach notification and contractual requirements.

Under the TCPA, what is generally required before a collector calls a consumer's cell phone using an autodialer or artificial/prerecorded voice?

Answer: Prior express consent of the called party

The TCPA requires prior express consent for autodialed or prerecorded non-emergency calls to cell phones, and consent can be revoked by any reasonable means.

Under FDCPA §806, which conduct is an example of harassment or abuse?

Answer: Using obscene or profane language toward the consumer

FDCPA §806(2) specifically prohibits obscene or profane language whose natural consequence is to abuse the hearer.

Why should a collection agency conduct regular internal compliance audits?

Answer: To identify control weaknesses and violations early so they can be corrected before regulators or litigants find them

Independent audits test whether policies are followed and controls work, enabling corrective action that reduces regulatory and litigation exposure.