FREE PCM Debt Collection Laws & Compliance Questions and Answers

Question 1

What federal law regulates debt collection practices in the United States?

Accepted Answer

Fair Debt Collection Practices Act

Answer

Truth in Lending Act

Answer

Fair Credit Reporting Act

Answer

Equal Credit Opportunity Act

Question 2

What is a debt collector prohibited from doing under FDCPA?

Accepted Answer

Using threatening or abusive language

Answer

Calling consumers between 8 am and 9 pm

Answer

Sending written notices

Answer

Requesting payment information

Question 3

Within how many days must a debt collector send a validation notice after first contact?

Accepted Answer

5 days

Answer

3 days

Answer

10 days

Answer

30 days

Question 4

What rights do consumers have under the FDCPA regarding disputed debts?

Accepted Answer

Right to dispute and request validation

Answer

No rights to dispute

Answer

Must pay immediately

Answer

Only dispute after court summons

Question 5

Which agency enforces federal debt collection laws?

Accepted Answer

Consumer Financial Protection Bureau

Answer

Federal Trade Commission

Answer

Department of Justice

Answer

Federal Reserve

Question 6

Can a debt collector contact a consumer’s employer?

Accepted Answer

Only to verify employment

Answer

Yes, with full debt disclosure

Answer

No contact allowed

Answer

Only if employer agrees

Question 7

What is the statute of limitations in debt collection?

Accepted Answer

Varies by state

Answer

Uniform 10 years everywhere

Answer

No limitation

Answer

Only 1 year

Question 8

Under the FDCPA, when must a debt collector cease communication?

Accepted Answer

Immediately after request

Answer

Never

Answer

After 30 days

Answer

After 60 days

Question 9

What penalties can be imposed for violating debt collection laws?

Accepted Answer

Fines and legal damages

Answer

No penalties

Answer

Warning letters only

Answer

License revocation only