PCS Account Management & Resolution Techniques 2

Question 1

When a debtor proposes a settlement for 60% of the balance owed, what is the collector's FIRST step?

Accepted Answer

Verify authority to approve the settlement amount before responding

Answer

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?

Accepted Answer

Send a breach letter and reinstate the original full balance as due

Answer

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?

Accepted Answer

Credit bureau employment data

Answer

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?

Accepted Answer

Request proof of payment and place the account on hold pending review

Answer

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?

Accepted Answer

The debtor has committed to making payment by a specific date

Answer

A PTP records a debtor's verbal commitment to pay by a specified date, enabling collectors to monitor follow-up timing.

(PCS) Professional Collection Specialist Practice Test