CRPA CRPA Collections & Debt Recovery

Question 1

Under the Fair Debt Collection Practices Act (FDCPA), which of the following is a prohibited debt collection practice?

Accepted Answer

Calling a debtor before 8 AM or after 9 PM local time

Answer

Contacting a debtor at a reasonable hour to discuss payment

Answer

Sending a written validation notice within five days of initial contact

Answer

Notifying a debtor of their right to dispute the debt

Question 2

A debtor sends a written cease communication request. Under the FDCPA, which action is still permissible for the collector?

Accepted Answer

Notifying the debtor that collection efforts are being terminated

Answer

Calling the debtor once more to confirm receipt

Answer

Reporting the debt to a credit bureau without notice

Answer

Transferring the account to a third-party agency immediately

Question 3

Which collections strategy prioritizes contacting accounts with the highest balance and oldest past-due status first?

Accepted Answer

Balance-weighted aging prioritization

Answer

First-in, first-out (FIFO) collections

Answer

Risk-based collections stratification

Answer

Waterfall collection methodology

Question 4

What is a 'skip tracing' process in the context of receivables collections?

Accepted Answer

Locating a debtor who has moved without providing updated contact information

Answer

Bypassing overdue accounts to focus on current receivables

Answer

Removing small-balance accounts from the collections queue

Answer

Transferring delinquent accounts to legal counsel

Question 5

When should a receivables professional typically recommend sending an account to a third-party collection agency?

Accepted Answer

After internal collection efforts have been exhausted, typically 90–120 days past due

Answer

Immediately upon invoice issuance

Answer

After one missed payment regardless of amount

Answer

Only when the debtor has filed for bankruptcy

Question 6

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

Accepted Answer

Collections Effectiveness Index (CEI)

Answer

Days Sales Outstanding (DSO)

Answer

Accounts Receivable Turnover Ratio

Answer

Bad Debt Reserve Percentage