Free CRPA Legal & Regulatory Compliance Questions and Answers

Question 1

What is the main purpose of the Fair Debt Collection Practices Act (FDCPA)?

Accepted Answer

To protect consumers from abusive debt collection practices.

Answer

To regulate interest rates on loans.

Answer

To standardize credit scores.

Answer

To manage stock trading compliance.

Question 2

Which federal agency enforces consumer financial protection laws?

Accepted Answer

CFPB

Answer

IRS

Answer

SEC

Answer

FTC

Question 3

What must a debt collector do within five days of initial contact with a consumer?

Accepted Answer

Send a written notice detailing the debt.

Answer

File a lawsuit.

Answer

Contact the consumer's employer.

Answer

Report the debt to a credit bureau.

Question 4

Which act governs the privacy of consumer financial information?

Accepted Answer

GLBA

Answer

FDCPA

Answer

FCRA

Answer

HIPAA

Question 5

Under the FCRA, what is a consumer entitled to regarding their credit report?

Accepted Answer

Access to their credit report and ability to dispute errors.

Answer

Unlimited free credit scores.

Answer

Daily updates to their credit report.

Answer

Automatic loan approvals.

Question 6

Which of the following actions is prohibited by the FDCPA?

Accepted Answer

Calling a debtor after 9 PM.

Answer

Sending monthly billing statements.

Answer

Sending debt validation letters.

Answer

Offering settlement discounts.

Question 7

What is the statute of limitations in debt collection?

Accepted Answer

The legal timeframe to initiate a lawsuit for unpaid debt.

Answer

The period in which a debt must be paid.

Answer

The time a credit report remains on file.

Answer

The grace period before a payment is late.

Question 8

Why must debt collectors verify the identity of the consumer?

Accepted Answer

To avoid contacting the wrong person.

Answer

To increase collection speed.

Answer

To calculate interest charges.

Answer

To monitor account activity.

Question 9

Which of the following must a debt collector avoid to remain compliant?

Accepted Answer

Threatening arrest without legal grounds.

Answer

Sending settlement offers.

Answer

Calling from a business phone.

Answer

Providing payment reminders.