PCS Consumer Rights & Protection Laws 2 — Questions and Answers
Question 1: Under the FDCPA, which of the following communication methods requires a debt collector to honor a cease-communication request?
- Only phone calls
- Only written letters
- All communications, including phone, mail, and electronic messages (Correct answer)
- Only in-person contact
Correct answer: All communications, including phone, mail, and electronic messages
A cease-communication request under the FDCPA applies to all forms of communication, not just a single channel.
Question 2: Which federal agency has primary enforcement authority over the FDCPA?
- Federal Reserve Board
- Consumer Financial Protection Bureau (CFPB) (Correct answer)
- Department of Justice
- Federal Deposit Insurance Corporation (FDIC)
Correct answer: Consumer Financial Protection Bureau (CFPB)
The CFPB has primary enforcement authority over the FDCPA for most debt collectors.
Question 3: A consumer sends a written dispute of a debt. Within how many days must the collector cease collection activity until verification is mailed to the consumer?
- 5 days
- 15 days
- Until verification is obtained and mailed (Correct answer)
- 30 days
Correct answer: Until verification is obtained and mailed
Under FDCPA §809(b), collection activity must cease until the collector obtains verification and mails it to the consumer — there is no fixed number of days.
Question 4: The Electronic Fund Transfer Act (EFTA) primarily protects consumers who use:
- Credit cards for purchases
- ATMs, debit cards, and electronic bank transfers (Correct answer)
- Payday loans
- Mortgage payments
Correct answer: ATMs, debit cards, and electronic bank transfers
EFTA governs electronic fund transfers including ATM transactions, debit card payments, and direct deposits.
Question 5: Under the Fair Credit Billing Act (FCBA), a consumer has how many days from the statement date to submit a billing error dispute in writing?
- 30 days
- 45 days
- 60 days (Correct answer)
- 90 days
Correct answer: 60 days
The FCBA gives consumers 60 days from the date the statement was mailed to dispute a billing error in writing.
Question 6: Which statement about the Gramm-Leach-Bliley Act (GLBA) and debt collection is correct?
- It requires debt collectors to share consumer data with all credit bureaus
- It mandates that financial institutions protect nonpublic personal information and provide privacy notices (Correct answer)
- It prohibits debt collectors from using electronic records
- It caps interest rates on consumer debt
Correct answer: It mandates that financial institutions protect nonpublic personal information and provide privacy notices
GLBA requires financial institutions — including many debt collectors — to safeguard consumers' nonpublic personal information and issue annual privacy notices.
Question 7: A debt collector calls a consumer's neighbor and reveals the consumer owes a debt. This action most likely violates which FDCPA prohibition?
- The ban on calling before 8 a.m.
- The prohibition on disclosing debt information to third parties (Correct answer)
- The requirement to send a written notice
- The ban on contacting the consumer at work
Correct answer: The prohibition on disclosing debt information to third parties
FDCPA §805(b) prohibits a debt collector from communicating a consumer's debt to third parties, including neighbors.
PCS Consumer Rights & Protection Laws 2
Under the FDCPA, which of the following communication methods requires a debt collector to honor a cease-communication request?