PCM Debt Collection Laws & Compliance 5

Question 1

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

Accepted Answer

That the communication is from a debt collector

Answer

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

Question 2

Which debt is generally outside the FDCPA's scope?

Accepted Answer

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

Answer

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

Question 3

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

Accepted Answer

Stop collection activity due to the automatic stay

Answer

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

Question 4

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

Accepted Answer

6%

Answer

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

Question 5

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

Accepted Answer

Communicating with the consumer by postcard

Answer

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

PCM - Professional Collection Manager Certified Practice Test