PCM PCM Technology & Data Management 2 — Questions and Answers
Question 1: A collection manager wants to use data analytics to identify which accounts are most likely to pay if contacted. This predictive modeling approach is known as:
- Skip tracing analysis
- Propensity-to-pay scoring (Correct answer)
- Debt validation modeling
- Charge-off forecasting
Correct answer: Propensity-to-pay scoring
Propensity-to-pay scoring uses account attributes and behavioral data to predict which debtors are most likely to make a payment if contacted.
Question 2: Skip tracing in debt collection refers to:
- Removing inactive accounts from the collection system
- Locating a debtor who has moved or become unreachable using data search tools (Correct answer)
- Skipping over low-balance accounts in the dialing queue
- Transferring accounts between collection teams
Correct answer: Locating a debtor who has moved or become unreachable using data search tools
Skip tracing uses data sources such as credit bureaus, public records, and address databases to locate debtors whose contact information is outdated.
Question 3: Which data security standard is MOST relevant for a collection agency that processes consumer credit and debit card payments?
- HIPAA
- PCI-DSS (Correct answer)
- SOX
- FISMA
Correct answer: PCI-DSS
The Payment Card Industry Data Security Standard (PCI-DSS) establishes requirements for any entity that processes, stores, or transmits payment card data.
Question 4: A collection manager reviewing system reports notices a high 'not in service' (NIS) rate for phone numbers in a new portfolio. What technology solution best addresses this?
- Increase dialing frequency for all accounts
- Implement a phone number scrubbing and validation service before loading accounts (Correct answer)
- Switch to email-only contact attempts
- Manually verify each number with a collector
Correct answer: Implement a phone number scrubbing and validation service before loading accounts
A phone number scrubbing service validates and updates phone numbers before they enter the dialing queue, reducing wasted call attempts on bad numbers.
Question 5: In the context of collection agency data management, what is a 'right-party contact' (RPC) rate?
- The percentage of calls answered by a human
- The percentage of outbound calls that reach the actual debtor rather than a third party or voicemail (Correct answer)
- The percentage of accounts paid in full
- The rate at which accounts are transferred to legal
Correct answer: The percentage of outbound calls that reach the actual debtor rather than a third party or voicemail
RPC rate measures how often collectors successfully reach the actual debtor, making it a key efficiency metric for dialing campaigns.
Question 6: A collection agency uses an omnichannel communication platform. Which compliance requirement must be configured FIRST before launching text message (SMS) campaigns?
- Ensure texts are sent only on weekdays
- Obtain and document consumer opt-in consent for text communications under TCPA (Correct answer)
- Limit SMS messages to 160 characters
- Integrate the SMS platform with the predictive dialer
Correct answer: Obtain and document consumer opt-in consent for text communications under TCPA
TCPA requires documented prior express written consent before sending collection-related text messages to consumer mobile phones.
PCM PCM Technology & Data Management 2
A collection manager wants to use data analytics to identify which accounts are most likely to pay if contacted.
This predictive modeling approach is known as: