PCS State & Federal Collection Laws 3

Question 1

Which statement about state statute of limitations on debt collection lawsuits is CORRECT?

Accepted Answer

States set their own statutes of limitations, which vary by debt type

Answer

Each state sets its own limitations periods, which can vary significantly based on the type of debt (written contract, open account, etc.).

Question 2

A collector threatens to sue a consumer on a time-barred debt without disclosing that the debt is past the statute of limitations. This likely violates which provision of the FDCPA?

Accepted Answer

Section 807 — false, deceptive, or misleading representations

Answer

Threatening a lawsuit on a time-barred debt without disclosing that fact is considered a false or deceptive representation under Section 807.

Question 3

California's Rosenthal Fair Debt Collection Practices Act differs from the FDCPA in that it:

Accepted Answer

Also covers original creditors collecting their own debts

Answer

The Rosenthal Act extends FDCPA-like protections to cover original creditors collecting their own consumer debts in California.

Question 4

Under the FDCPA, a debt collector may NOT deposit a postdated check before:

Accepted Answer

The date on the check

Answer

Depositing or threatening to deposit a postdated check before its date is prohibited under the FDCPA.

Question 5

Which of the following is an example of a 'bona fide error' defense available to debt collectors under the FDCPA?

Accepted Answer

An isolated clerical error in calculating the amount owed, despite reasonable procedures

Answer

The bona fide error defense protects collectors who violate the FDCPA due to unintentional errors made despite maintaining reasonable procedures to avoid such errors.

(PCS) Professional Collection Specialist Practice Test

(PCS) Professional Collection Specialist Practice Test

PCS State & Federal Collection Laws 3