Collection Strategies & Methods Flashcards

When a debtor disputes a debt in writing within 30 days of initial notice, what is the collector's required next step under the FDCPA?

Answer: Cease collection until verification is mailed to the debtor

Under FDCPA §809(b), the collector must cease collection activity until debt verification is obtained and mailed to the debtor.

Which collection strategy prioritizes accounts most likely to produce payment based on statistical scoring models?

Answer: Segmentation and scoring

Segmentation and scoring uses statistical models to rank accounts by recovery likelihood, focusing resources on highest-yield accounts first.

A collector calls a debtor's workplace and the employer answers. The collector may NOT:

Answer: Reveal the call is about debt collection

Disclosing to a third party that the call concerns debt collection violates FDCPA §805(b) prohibitions on third-party disclosure.

What is the primary purpose of a 'mini-Miranda' warning in debt collection calls?

Answer: To inform the debtor this is a debt collection attempt and information will be used for that purpose

The mini-Miranda, required by FDCPA §807(11), discloses that the communication is from a debt collector and information will be used to collect the debt.

Under Regulation F, how many times may a debt collector call a consumer about a specific debt within a seven-day period?

Answer: No more than 7 times

Regulation F establishes a safe harbor presumption that calling more than 7 times in 7 days is harassment, creating a bright-line call frequency cap.

Which payment arrangement strategy is best suited for a debtor with irregular income, such as a commissioned salesperson?

Answer: Income-percentage-based payments tied to pay periods

Flexible payment schedules tied to income cycles reduce default risk for debtors with variable pay by aligning obligations to actual cash flow.

A collector discovers a debtor's new address through skip tracing. Under the FDCPA, communications sent to that address must:

Answer: Be sent without any external marking identifying it as debt-related

FDCPA §805(c) prohibits using envelopes or postcards that reveal the communication is from a debt collector or is about a debt.