PCS Account Management & Resolution Techniques 2 — Questions and Answers
Question 1: When a debtor proposes a settlement for 60% of the balance owed, what is the collector's FIRST step?
- Accept immediately to close the account
- Verify authority to approve the settlement amount before responding (Correct answer)
- Reject the offer and demand full payment
- Ignore the proposal and escalate to legal action
Correct answer: Verify authority to approve the settlement amount before responding
Collectors must confirm they have authorization to accept settlement offers at a given percentage before agreeing to any terms.
Question 2: A payment arrangement is broken after the second installment. Which action best protects the creditor's position?
- Forgive the missed payment and restart the plan
- Send a breach letter and reinstate the original full balance as due (Correct answer)
- Immediately file a lawsuit without further contact
- Write off the account as uncollectible
Correct answer: Send a breach letter and reinstate the original full balance as due
A formal breach notice reinstates the original debt terms and documents the debtor's default, preserving legal remedies.
Question 3: Which skip-tracing source is typically considered the most reliable for locating a debtor's current employer?
- Social media profiles
- Credit bureau employment data (Correct answer)
- Neighbor interviews
- Old utility bills
Correct answer: Credit bureau employment data
Credit bureau data is regularly updated by lenders and often reflects current employment from recent credit applications.
Question 4: A debtor claims to have already paid the account in full. What should the collector do first?
- Cease all collection activity immediately
- Request proof of payment and place the account on hold pending review (Correct answer)
- Demand payment again because the system shows a balance
- Transfer the account to legal without investigation
Correct answer: Request proof of payment and place the account on hold pending review
The collector must investigate the claim by requesting documentation before continuing collection efforts to avoid FDCPA violations.
Question 5: In account management, what does the term 'promise to pay' (PTP) status indicate?
- The debt has been legally discharged
- The debtor has committed to making payment by a specific date (Correct answer)
- The account has been sold to a third party
- The debtor has disputed the debt in writing
Correct answer: The debtor has committed to making payment by a specific date
A PTP records a debtor's verbal commitment to pay by a specified date, enabling collectors to monitor follow-up timing.
Question 6: A collector calls a debtor and reaches their employer's HR department by mistake. What is the correct action?
- Disclose the nature of the call and leave a detailed message
- Hang up without identifying the purpose and do not call that number again for collection purposes (Correct answer)
- Ask HR to relay a payment demand to the debtor
- Request the debtor's work schedule from HR
Correct answer: Hang up without identifying the purpose and do not call that number again for collection purposes
Revealing the nature of a debt collection call to a third party violates FDCPA third-party disclosure rules.
Question 7: Which metric is MOST useful for measuring a collector's effectiveness in resolving delinquent accounts?
- Number of outbound calls made per day
- Right-party contact rate combined with promise-to-pay conversion rate (Correct answer)
- Total hours worked per week
- Number of accounts in their portfolio
Correct answer: Right-party contact rate combined with promise-to-pay conversion rate
Right-party contacts that convert to payment commitments directly measure collection success, unlike activity-only metrics.
PCS Account Management & Resolution Techniques 2
When a debtor proposes a settlement for 60% of the balance owed, what is the collector's FIRST step?