FDCPA Debt Collector Liability and Penalties 3

Question 1

Which of the following is NOT an affirmative defense available to a debt collector under the FDCPA?

Accepted Answer

The consumer's debt was legitimately owed

Answer

The fact that a debt is legitimately owed does not excuse FDCPA violations — the law governs collection conduct, not debt validity.

Question 2

A consumer files an FDCPA suit and wins $500 in actual damages and $1,000 in statutory damages. The court awards $5,000 in attorney's fees. What is the total recovery?

Accepted Answer

$6,500

Answer

The consumer recovers the sum of actual damages ($500) + statutory damages ($1,000) + attorney's fees ($5,000) = $6,500.

Question 3

The FTC historically enforced the FDCPA. After the Dodd-Frank Act, what role does the FTC play?

Accepted Answer

The FTC retains enforcement authority but shares it with the CFPB

Answer

Both the FTC and CFPB can bring FDCPA enforcement actions, though the CFPB has primary rulemaking authority.

Question 4

A debt collector is sued for an FDCPA violation but demonstrates it maintained a written policy against the prohibited practice and trained employees. This most supports which defense?

Accepted Answer

Bona fide error defense

Answer

Written policies and employee training are key components of the bona fide error defense under the FDCPA.

Question 5

Can a debt collector be held liable for an FDCPA violation even if it did not know its conduct violated the law?

Accepted Answer

Yes, FDCPA liability is generally strict for most violations

Answer

The FDCPA imposes strict liability for most violations — intent is irrelevant unless the collector invokes the bona fide error defense.

FDCPA - Fair Debt Collection Practices Act Practice Test

FDCPA - Fair Debt Collection Practices Act Practice Test

FDCPA Debt Collector Liability and Penalties 3