Operations & Process Management Flashcards

Which item is most important in a vendor oversight program when a creditor uses a collection agency?

Answer: Regular audits of compliance, complaints, and call recordings

Regulators hold creditors responsible for vendor conduct, so ongoing compliance monitoring is essential.

Agents are offering settlements below the client's approved authority. What is the best process control?

Answer: Settlement authority limits built into the system, with escalation for exceptions

System-enforced authority matrices stop unauthorized settlements while still allowing approved exceptions.

What is the main benefit of offering a self-service online payment portal?

Answer: Lower cost per payment and 24/7 payment access for consumers

Self-service lets consumers pay at any time without an agent, which lowers operating cost.

Under Regulation F, an email or text to a consumer about a debt must include what?

Answer: A clear and simple way to opt out of further electronic messages at that address or number

Reg F requires electronic communications to include a clear and conspicuous opt-out method.

A manager wants to cut the time between a client placing an account and the first consumer contact. Which change helps most?

Answer: Automating placement intake, scrubbing, and letter generation

Automated intake removes manual delays, so validation notices and outreach start sooner.

Which statement best describes a service level agreement (SLA) between an agency and its client?

Answer: A contract that sets measurable performance standards such as remittance timing and reporting

SLAs define measurable obligations, such as remittance deadlines, recovery targets, and reporting, that the agency must meet.

Before a debt collector furnishes information about a debt to a credit bureau, what does Regulation F require?

Answer: Speaking with the consumer or sending a communication and waiting a reasonable time for a notice of undeliverability

Reg F bans 'passive' credit reporting, so the collector must first communicate with the consumer and wait a reasonable period (14 days is a safe harbor).