PCS Collection Strategies & Methods 2

Question 1

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?

Accepted Answer

Cease collection until verification is mailed to the debtor

Answer

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

Question 2

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

Accepted Answer

Segmentation and scoring

Answer

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

Question 3

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

Accepted Answer

Reveal the call is about debt collection

Answer

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

Question 4

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

Accepted Answer

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

Answer

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.

Question 5

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

Accepted Answer

No more than 7 times

Answer

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.

(PCS) Professional Collection Specialist Practice Test

(PCS) Professional Collection Specialist Practice Test

PCS Collection Strategies & Methods 2