Collection Strategies & Methods Flashcards

A collector is handling a deceased debtor's account. Whom may the collector legally contact to discuss the debt?

Answer: The executor, administrator, or authorized representative of the estate

FDCPA regulations permit contact with the executor or administrator of the estate, who has legal authority to act on behalf of the deceased debtor.

Which of the following is an example of an 'unfair practice' prohibited under FDCPA §808?

Answer: Collecting a fee not authorized by the agreement or permitted by law

FDCPA §808 prohibits collecting any amount — including interest, fees, or charges — not expressly authorized by the debt agreement or permitted by law.

When segmenting a portfolio for collection strategy, accounts with the highest balance and most recent delinquency are typically assigned to:

Answer: Front-line live agent queues with high dialing priority

High-balance, recently delinquent accounts have the best recovery potential and justify the cost of live agent contact over automated approaches.

What does the term 'waterfall strategy' mean in the context of collection account placement?

Answer: Routing accounts sequentially to different agencies or strategies based on prior non-response

A waterfall strategy passes accounts through a structured series of collection treatments or vendors, each triggered by failure of the prior attempt.

Which consumer protection law requires collectors to provide a model validation notice and governs electronic communication options in debt collection?

Answer: Regulation F (implementing the FDCPA)

Regulation F, effective November 2021, implemented FDCPA rules including a model validation notice and established rules for email and text message collection communications.

A debtor agrees to a settlement but requests a 'pay for delete' arrangement on their credit report. The collector should:

Answer: Inform the debtor that credit reporting is governed by the FCRA and cannot be promised, then check with the creditor client

FCRA accuracy obligations govern credit reporting, and collectors cannot unilaterally guarantee deletions without creditor authorization — making false promises creates liability.

In dispute resolution, which technique involves restating the debtor's concern in the collector's own words to demonstrate understanding before addressing it?

Answer: Reflective listening / paraphrasing

Reflective listening validates the debtor's concern and builds rapport, making the debtor more receptive to the collector's proposed resolution.