PCS Collection Strategies & Methods 3 — Questions and Answers
Question 1: Which negotiation technique involves a collector starting with a high demand to leave room for concessions toward the actual target settlement?
- Bracketing
- Anchoring (Correct answer)
- Good cop/bad cop
- Mirroring
Correct answer: Anchoring
Anchoring sets the initial reference point high so that any concession still moves the debtor toward the collector's actual goal.
Question 2: When a debtor claims to have already paid an account, the collector's best immediate action is to:
- Demand proof of payment before suspending collection
- Place the account on hold and request documentation from both parties (Correct answer)
- Transfer to litigation immediately
- Continue collection while the debtor gathers proof
Correct answer: Place the account on hold and request documentation from both parties
Placing the account on hold while gathering documentation prevents potential FDCPA violations from continuing to collect on a possibly paid debt.
Question 3: In the context of collection, 'right-party contact' (RPC) most directly impacts which performance metric?
- Average days delinquent
- Promises-to-pay rate and dollars collected (Correct answer)
- Regulatory complaint rate
- Account placement volume
Correct answer: Promises-to-pay rate and dollars collected
Right-party contact is the gateway to all productive collection activity — without reaching the debtor, no promises-to-pay or payments can be obtained.
Question 4: A debtor makes a verbal promise to pay but does not follow through. Which strategy should the collector use on the next contact?
- Immediately threaten legal action
- Reference the prior commitment and explore the reason for non-payment (Correct answer)
- Escalate to a supervisor call without notice
- Write off the account as uncollectible
Correct answer: Reference the prior commitment and explore the reason for non-payment
Referencing the prior promise creates accountability and opens a dialogue to understand and overcome the barrier that prevented payment.
Question 5: Under the FDCPA, which of the following constitutes a prohibited 'false representation' in collecting a debt?
- Offering a settlement below the full balance
- Claiming the collector is an attorney when they are not (Correct answer)
- Asking for payment by a specific due date
- Reporting a valid debt to a credit bureau
Correct answer: Claiming the collector is an attorney when they are not
FDCPA §807(3) expressly prohibits falsely representing that the collector is an attorney or that a communication is from an attorney.
Question 6: Which collection method involves selling accounts to a third-party buyer who then owns the debt outright and collects on its own behalf?
- Contingency placement
- Debt purchasing / debt buying (Correct answer)
- Forward placement
- Agency recalls
Correct answer: Debt purchasing / debt buying
Debt purchasing transfers ownership of the account to the buyer for a lump-sum price, and the buyer assumes all collection rights and risks.
Question 7: What is the recommended approach when a debtor invokes their cease-communication right under the FDCPA?
- Continue calling until a written notice is received
- Stop all communication except to notify about specific intended actions (e.g., legal suit) (Correct answer)
- Transfer to a legal vendor to bypass the restriction
- Send a final demand letter within 24 hours
Correct answer: Stop all communication except to notify about specific intended actions (e.g., legal suit)
FDCPA §805(c) allows only limited communications after a cease-and-desist, specifically to notify the debtor of termination of efforts or legal action.
PCS Collection Strategies & Methods 3
Which negotiation technique involves a collector starting with a high demand to leave room for concessions toward the actual target settlement?