PCS PCS Professional Ethics & Compliance 2

Question 1

Which practice is an example of an unfair collection practice prohibited by the FDCPA?

Accepted Answer

Depositing a post-dated check before its date without prior notice

Answer

The FDCPA prohibits depositing or threatening to deposit a post-dated check before its date or without prior notice, as this is considered an unfair practice.

Question 2

A collector is asked by a supervisor to add unauthorized fees to a consumer's balance. The ethical response is to:

Accepted Answer

Refuse, as adding unauthorized fees violates the FDCPA and professional ethics

Answer

The FDCPA prohibits collecting amounts not authorized by the agreement or permitted by law; following a supervisor's unethical directive does not shield the collector from liability.

Question 3

What does a compliance management system (CMS) in a collection agency typically include?

Accepted Answer

Board oversight, written policies, training, monitoring, and a consumer complaint response process

Answer

The CFPB expects a robust CMS to include board/management oversight, written policies, employee training, ongoing monitoring, and a formal process for handling consumer complaints.

Question 4

Which regulation governs how personally identifiable information (PII) collected during debt collection must be protected?

Accepted Answer

Gramm-Leach-Bliley Act (GLBA) Safeguards Rule

Answer

The GLBA Safeguards Rule requires financial institutions, including debt collectors, to implement security programs to protect the nonpublic personal information they collect.

Question 5

When a collection agency employee suspects their colleague is accessing consumer data without a legitimate business purpose, this represents a potential violation of:

Accepted Answer

GLBA privacy requirements and possibly the Computer Fraud and Abuse Act (CFAA)

Answer

Unauthorized access to consumer data violates GLBA privacy protections and may also constitute a federal crime under the CFAA, which prohibits unauthorized computer access.

(PCS) Professional Collection Specialist Practice Test

(PCS) Professional Collection Specialist Practice Test

PCS PCS Professional Ethics & Compliance 2