PCS Payment Negotiation & Settlement 3

Question 1

Which of the following is an example of 'bracketing' in settlement negotiations?

Accepted Answer

Proposing a settlement range with the target amount in the middle

Answer

Bracketing involves setting a range around your target so the midpoint lands near your desired outcome after negotiation.

Question 2

A debtor agrees verbally to a settlement but later denies the agreement. Best practice to prevent this dispute is:

Accepted Answer

Send written confirmation of the settlement terms before accepting payment

Answer

Sending written confirmation of agreed settlement terms before payment protects both parties and reduces later disputes.

Question 3

What does 'accord and satisfaction' mean in debt settlement?

Accepted Answer

An agreement where a lesser payment is accepted as full satisfaction of the debt

Answer

Accord and satisfaction occurs when both parties agree that a reduced payment fully resolves the obligation.

Question 4

When negotiating with a debtor who has multiple debts owed to the same creditor, which strategy is generally most effective?

Accepted Answer

Negotiate a global settlement covering all accounts simultaneously

Answer

A global settlement across all accounts can motivate the debtor with a single resolution while maximizing recovery for the creditor.

Question 5

A debtor offers post-dated checks as part of a payment plan. The collector should:

Accepted Answer

Confirm with the client whether post-dated checks are acceptable and follow client policy

Answer

Client policy governs whether post-dated checks are acceptable, and collectors must follow that policy to avoid legal complications.

(PCS) Professional Collection Specialist Practice Test