FDCPA Covered Entities and Exemptions 2

Question 1

A bank's internal collections department contacts a consumer about a defaulted loan. Is the bank covered by the FDCPA?

Accepted Answer

Generally no, because the bank is collecting its own debt

Answer

Yes, all collection activity by banks is covered

Answer

No, banks are completely regulated by the OCC instead

Answer

Yes, if the loan is more than 90 days past due

Question 2

A company regularly collects debts for its affiliated companies. Is it a debt collector under the FDCPA?

Accepted Answer

It depends on whether the companies are truly separate legal entities and whether collection is in a different name

Answer

No, affiliated companies are always treated as one entity

Answer

Yes, any intercompany collection is third-party collection

Answer

No, as long as all companies share the same parent corporation

Question 3

Which of the following professionals is expressly covered as a debt collector under the FDCPA?

Accepted Answer

An attorney who regularly collects consumer debts through litigation

Answer

A process server who delivers collection lawsuits

Answer

An accountant who reconciles debt accounts for a collector

Answer

A software developer who builds collection management systems

Question 4

A nonprofit consumer credit counseling agency collects payments from consumers and forwards them to creditors. Is the agency a debt collector?

Accepted Answer

Generally no, if the agency's principal business is not debt collection and it meets other criteria

Answer

Yes, because it handles debt payments on behalf of creditors

Answer

No, nonprofits are always exempt from the FDCPA

Answer

Yes, all third-party payment handling is covered

Question 5

A mortgage servicer begins servicing a loan that was already in default when the servicer acquired it. Is the servicer a debt collector?

Accepted Answer

Yes, servicers who acquire defaulted loans are treated as debt collectors

Answer

No, mortgage servicers are never debt collectors under the FDCPA

Answer

Yes, but only for the first 90 days of servicing

Answer

No, servicers are creditors because they hold the loan

Question 6

Which of the following debts is NOT covered by the FDCPA?

Accepted Answer

A business owner's commercial line of credit used solely for business

Answer

A personal credit card balance

Answer

A medical bill for personal healthcare

Answer

A student loan taken for personal education