CPC Privacy Protection & Ethical Practices 3

Question 1

Under the Gramm-Leach-Bliley Act (GLBA), debt collectors who are financial institutions must:

Accepted Answer

Provide consumers with an annual privacy notice describing information sharing practices

Answer

GLBA requires covered financial institutions to provide annual privacy notices explaining how consumer information is collected and shared.

Question 2

A debtor asks a collector what information the agency has about them. Ethically, the collector should:

Accepted Answer

Inform the debtor of what information is held and how it is used, per applicable law

Answer

Ethical practice and laws like the FDCPA require transparency with consumers about the information held and its purpose.

Question 3

Which ethical principle requires collectors to treat all debtors with dignity regardless of the debt amount?

Accepted Answer

Respect and non-discrimination

Answer

Professional collectors must treat every consumer with respect and without discrimination, regardless of the debt size or consumer background.

Question 4

A collector receives a written request from a consumer stating they cannot be contacted at work. The collector must:

Accepted Answer

Stop contacting the consumer at their workplace immediately

Answer

The FDCPA requires collectors to honor consumer requests to stop workplace contact immediately upon notification.

Question 5

Which of the following represents a FCRA (Fair Credit Reporting Act) violation by a debt collector?

Accepted Answer

Reporting a paid debt as still outstanding to a credit bureau

Answer

Reporting a paid debt as still outstanding is a form of furnishing inaccurate information, which violates the FCRA's accuracy requirements.

(CPC) Certified Professional Collector Practice Test