PCM PCM Technology & Data Management 1 — Questions and Answers
Question 1: Which type of collection software system serves as the central platform for managing debtor accounts, payment plans, contact history, and compliance documentation?
- Customer relationship management (CRM) system
- Collection management system (CMS) (Correct answer)
- Enterprise resource planning (ERP) system
- Learning management system (LMS)
Correct answer: Collection management system (CMS)
A collection management system (CMS) is purpose-built to centralize debtor account data, collector workflows, payment tracking, and compliance logs.
Question 2: Under the Telephone Consumer Protection Act (TCPA), what technology restriction applies to auto-dialers when calling cell phones?
- Auto-dialers may call cell phones at any time without restriction
- Auto-dialers require prior express written consent to call consumer cell phones (Correct answer)
- Auto-dialers are completely banned for collection use
- Auto-dialers must use a caller ID masking service
Correct answer: Auto-dialers require prior express written consent to call consumer cell phones
The TCPA requires prior express written consent before using an automatic telephone dialing system (ATDS) to call consumer mobile phones.
Question 3: A collection agency implements predictive dialing technology. What is the PRIMARY compliance risk that must be managed?
- The system may exceed FDCPA-defined call hour windows and generate abandoned call rate violations (Correct answer)
- Predictive dialers are prohibited under the FDCPA
- The technology generates too many right-party contacts
- Predictive dialers cannot integrate with collection management systems
Correct answer: The system may exceed FDCPA-defined call hour windows and generate abandoned call rate violations
Predictive dialers must be configured to respect calling hour restrictions and must not exceed permissible abandoned call rates (3% under FTC safe harbor).
Question 4: What is data normalization in the context of importing debtor account files from creditor clients?
- Encrypting debtor data during transmission
- Standardizing inconsistent data formats (dates, phone numbers, addresses) into a uniform structure (Correct answer)
- Deleting duplicate debtor records
- Compressing large data files before storage
Correct answer: Standardizing inconsistent data formats (dates, phone numbers, addresses) into a uniform structure
Data normalization converts inconsistent field formats from different creditor systems into a standardized structure the collection system can process accurately.
Question 5: A collection agency's IT team proposes implementing two-factor authentication (2FA) for the collection management system. From a PCM perspective, the PRIMARY reason is:
- To reduce system login speed
- To protect sensitive consumer financial data from unauthorized access (Correct answer)
- To eliminate the need for password policies
- To comply with PCI-DSS payment card requirements only
Correct answer: To protect sensitive consumer financial data from unauthorized access
2FA adds an additional verification layer to protect consumer PII and financial data stored in collection systems from unauthorized access.
Question 6: Which federal regulation governs how collection agencies must protect the privacy of non-public personal information (NPI) of consumers?
- Fair Debt Collection Practices Act (FDCPA)
- Gramm-Leach-Bliley Act (GLBA) (Correct answer)
- Fair Credit Reporting Act (FCRA)
- Electronic Fund Transfer Act (EFTA)
Correct answer: Gramm-Leach-Bliley Act (GLBA)
The Gramm-Leach-Bliley Act requires financial institutions, including collection agencies, to implement safeguards protecting consumer non-public personal information.
PCM PCM Technology & Data Management 1
Which type of collection software system serves as the central platform for managing debtor accounts, payment plans, contact history, and compliance documentation?