Debt Collection Laws & Compliance Flashcards

Under the FDCPA, what must a collector disclose in subsequent communications after the initial communication with a consumer?

Answer: That the communication is from a debt collector

FDCPA §1692e(11) requires subsequent communications to disclose that they are from a debt collector.

Which debt is generally outside the FDCPA's scope?

Answer: A loan used to buy equipment for the consumer's business

The FDCPA covers only debts for personal, family, or household purposes, not business debts.

When a collector learns a consumer has filed for bankruptcy, what is generally required?

Answer: Stop collection activity due to the automatic stay

The bankruptcy automatic stay bars most collection actions against the debtor once a petition is filed.

Under the Servicemembers Civil Relief Act, interest on obligations incurred before active military service is capped at what rate during service?

Answer: 6%

The SCRA limits interest on pre-service debts to 6% per year during military service.

Which practice regarding envelopes and mail is prohibited under the FDCPA?

Answer: Communicating with the consumer by postcard

FDCPA §1692f(8) prohibits postcard communications and envelope language or symbols indicating debt collection.

Under Regulation F, which voicemail content qualifies as a 'limited-content message' that is not considered a communication?

Answer: A business name not indicating collection, a request to reply, name(s) of contact, phone number, and opt-out option

Regulation F's limited-content message includes specific required and optional elements and excludes debt details.

Under Regulation F, how long must a debt collector retain records evidencing compliance for a debt?

Answer: Three years after the last collection activity on the debt

Regulation F requires retaining compliance records from the start of collection until three years after the last collection activity.