PCS Skip Tracing & Locate Techniques 2 — Questions and Answers
Question 1: Under the FCRA, which of the following is a permissible purpose for accessing a consumer's credit report during skip tracing?
- Collecting a legitimate debt owed by the consumer (Correct answer)
- Marketing a new credit card to the consumer
- Determining eligibility for a job application
- Checking a neighbor's credit on the debtor's behalf
Correct answer: Collecting a legitimate debt owed by the consumer
The FCRA permits creditors and debt collectors to access credit reports for purposes of collecting a legitimate debt.
Question 2: When a skip tracer calls a debtor's former employer to verify employment history, which law primarily governs this contact?
- Fair Debt Collection Practices Act (FDCPA) (Correct answer)
- Gramm-Leach-Bliley Act (GLBA)
- Fair Credit Reporting Act (FCRA)
- Telephone Consumer Protection Act (TCPA)
Correct answer: Fair Debt Collection Practices Act (FDCPA)
The FDCPA regulates third-party contacts during debt collection, including calls to former employers to locate a debtor.
Question 3: A skip tracer discovers a debtor's new address through a utility company inquiry. The debtor has a 'cease communication' letter on file. What is the correct action?
- Update the address in the file but do not contact the debtor at the new address (Correct answer)
- Disregard the cease letter because new information has been discovered
- Immediately send a validation notice to the new address
- Forward the new address to the original creditor only
Correct answer: Update the address in the file but do not contact the debtor at the new address
A cease communication request applies to contact with the debtor, but collectors may still update internal records and continue internal collection activity.
Question 4: Which public record source is MOST commonly used to locate a debtor who may have recently purchased real estate?
- County recorder or assessor property records (Correct answer)
- Federal court PACER database
- State DMV voter registration rolls
- Social Security Administration death index
Correct answer: County recorder or assessor property records
County recorder or assessor records document real property ownership and are publicly accessible for skip tracing purposes.
Question 5: What is 'address verification' in the context of skip tracing?
- Confirming that a located address is current and that the debtor resides there (Correct answer)
- Sending a certified letter and waiting for return receipt
- Verifying the address exists in the postal database only
- Checking that the address matches the original creditor's records
Correct answer: Confirming that a located address is current and that the debtor resides there
Address verification means confirming through multiple sources that the debtor currently resides at the identified location before initiating collection contact.
Question 6: Under the FDCPA, how many times may a debt collector attempt to contact a third party to locate a debtor?
- Generally once, unless the third party asks the collector to call back or new information warrants a second contact (Correct answer)
- Up to three times per week per third party
- As many times as needed until location is confirmed
- No limit, as third-party locate calls are exempt from FDCPA restrictions
Correct answer: Generally once, unless the third party asks the collector to call back or new information warrants a second contact
The FDCPA restricts collectors to contacting any third party only once for location information unless the third party invites further contact or initially lacked the information.
Question 7: A skip tracer uses a debtor's social media profile to identify a new city of residence. What is the next recommended step?
- Cross-reference the social media data with at least one additional source before acting on it (Correct answer)
- Immediately update the address and send collection correspondence
- File a court motion to subpoena the social media platform for the exact address
- Mark the account as unresolvable until a physical address is confirmed
Correct answer: Cross-reference the social media data with at least one additional source before acting on it
Social media data should be corroborated with a second source (utility, credit header, public records) to ensure accuracy before collection action.
PCS Skip Tracing & Locate Techniques 2
Under the FCRA, which of the following is a permissible purpose for accessing a consumer's credit report during skip tracing?