PCM Technology & Data Management Flashcards

Which type of collection software system serves as the central platform for managing debtor accounts, payment plans, contact history, and compliance documentation?

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.

Under the Telephone Consumer Protection Act (TCPA), what technology restriction applies to auto-dialers when calling cell phones?

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.

A collection agency implements predictive dialing technology. What is the PRIMARY compliance risk that must be managed?

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).

What is data normalization in the context of importing debtor account files from creditor clients?

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.

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:

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.

Which federal regulation governs how collection agencies must protect the privacy of non-public personal information (NPI) of consumers?

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.