PCS State & Federal Collection Laws 2 — Questions and Answers
Question 1: Under the FDCPA, which of the following communications is exempt from the law's restrictions?
- A collect call placed to the debtor's workplace
- A communication from a creditor collecting its own debt (Correct answer)
- A letter sent by a collection agency to the debtor
- A voicemail left for the debtor at home
Correct answer: A communication from a creditor collecting its own debt
The FDCPA applies only to third-party debt collectors, not to original creditors collecting their own debts.
Question 2: Which federal agency has primary enforcement authority over the FDCPA for most debt collectors?
- Federal Reserve Board
- Office of the Comptroller of the Currency
- Consumer Financial Protection Bureau (CFPB) (Correct answer)
- Federal Trade Commission (FTC)
Correct answer: Consumer Financial Protection Bureau (CFPB)
The CFPB became the primary FDCPA enforcement authority after the Dodd-Frank Act transferred rulemaking and enforcement powers from the FTC.
Question 3: A state debt collection law provides more protections to consumers than the FDCPA. Which law applies?
- Only the FDCPA, because federal law preempts state law
- Only the state law, because it was enacted later
- Both laws apply, and the stricter state law must be followed (Correct answer)
- Neither law applies; the collector may use its own judgment
Correct answer: Both laws apply, and the stricter state law must be followed
The FDCPA sets a floor of consumer protections; states may enact stricter rules, and collectors must comply with both.
Question 4: Under Regulation F (FDCPA rules), what is the maximum number of telephone calls a debt collector may make to a consumer in a seven-day period about a specific debt?
- 3
- 5 (Correct answer)
- 7
- 10
Correct answer: 5
Regulation F creates a presumption of harassment if a collector calls more than seven times in seven days or within seven days after speaking with the consumer.
Question 5: Which type of debt is NOT covered by the FDCPA?
- Credit card debt incurred for personal use
- Medical bills owed by an individual
- A business loan taken out by a sole proprietor for commercial purposes (Correct answer)
- A student loan for personal education
Correct answer: A business loan taken out by a sole proprietor for commercial purposes
The FDCPA covers consumer debts — debts for personal, family, or household purposes — but not business or commercial debts.
Question 6: What must a debt collector do if a consumer sends a written request to verify the debt within 30 days of the validation notice?
- Report the account to the credit bureaus immediately
- Cease all collection activity until verification is mailed to the consumer (Correct answer)
- Contact the original creditor by phone within 5 days
- File a lawsuit to establish the validity of the debt
Correct answer: Cease all collection activity until verification is mailed to the consumer
Upon receiving a timely written verification request, the collector must stop all collection activity until it obtains and mails verification to the consumer.
Question 7: Under the FDCPA, if a consumer's attorney is known to the collector, communications about the debt must be directed to:
- Both the consumer and the attorney simultaneously
- The consumer directly to ensure they are informed
- The attorney, not the consumer (Correct answer)
- The original creditor for guidance
Correct answer: The attorney, not the consumer
When a debt collector knows the consumer is represented by an attorney, it must communicate with the attorney rather than the consumer.
PCS State & Federal Collection Laws 2
Under the FDCPA, which of the following communications is exempt from the law's restrictions?