FDCPA Covered Entities and Exemptions

Question 1

Under the FDCPA, a 'debt collector' is defined as a person who regularly collects debts owed to whom?

Accepted Answer

Another party — not debts owed to themselves

Answer

Any person, including original creditors

Answer

Only banks and financial institutions

Answer

Only licensed collection agencies

Question 2

Is a creditor collecting its own debt in its own name covered by the FDCPA?

Accepted Answer

Generally no, unless using a different name that suggests a third party is collecting

Answer

Yes, all creditors are covered regardless of whose debt it is

Answer

No, creditors are completely exempt from the FDCPA

Answer

Yes, if the creditor uses automated collection tools

Question 3

Which of the following is generally EXEMPT from the FDCPA?

Accepted Answer

A federal government employee collecting a debt in the course of official duties

Answer

A third-party collection agency hired by a bank

Answer

An attorney regularly filing collection lawsuits on behalf of creditors

Answer

A debt buyer who purchased consumer accounts

Question 4

A company purchases charged-off consumer debts and collects them for its own account. Is it a 'debt collector' under the FDCPA?

Accepted Answer

Yes, debt buyers are debt collectors under the FDCPA

Answer

No, it is a creditor because it owns the debt

Answer

Yes, but only if it uses third-party collectors

Answer

No, charged-off debts are not covered by the FDCPA

Question 5

Which type of debt is covered by the FDCPA?

Accepted Answer

Consumer debts incurred primarily for personal, family, or household purposes

Answer

All debts including business and commercial obligations

Answer

Only debts secured by real property

Answer

Only credit card debts over $500

Question 6

A plumber claims a homeowner owes $2,000 for repairs. The plumber hires a collection agency. Who is the 'debt collector' under the FDCPA?

Accepted Answer

The collection agency, because it collects debts owed to another

Answer

The plumber, because they originated the debt

Answer

Both the plumber and the collection agency

Answer

Neither, because home repair is not a consumer transaction