PCS Telephone Collection Communication 2 — Questions and Answers
Question 1: Under the FDCPA, when a consumer requests in writing that a debt collector cease further communication, what must the debt collector do?
- Continue calling until payment is arranged
- Stop all communication except to notify the consumer of specific intended actions (Correct answer)
- Transfer the account to another collector who can continue calling
- Report the account to credit bureaus immediately
Correct answer: Stop all communication except to notify the consumer of specific intended actions
Upon receiving a written cease communication request, the collector must stop contacting the consumer but may send one final notice about specific actions such as filing suit or terminating collection efforts.
Question 2: Which statement best describes the concept of 'mini-Miranda' disclosure in telephone collections?
- A warning that the call is being recorded
- A statement informing the consumer that the caller is a debt collector and that information will be used for collection (Correct answer)
- A notice that the consumer has the right to remain silent
- A disclosure that the consumer may be sued if payment is not made
Correct answer: A statement informing the consumer that the caller is a debt collector and that information will be used for collection
The mini-Miranda requires debt collectors to disclose on each communication that they are a debt collector and that any information obtained will be used for that purpose.
Question 3: A consumer tells you on the phone, 'I never agreed to this debt.' What is the most appropriate collector response?
- Demand immediate payment and ignore the dispute
- Inform the consumer they have 30 days to dispute in writing and then verify the debt (Correct answer)
- Hang up and report the consumer as uncooperative
- Immediately sue the consumer for fraud
Correct answer: Inform the consumer they have 30 days to dispute in writing and then verify the debt
The FDCPA gives consumers 30 days to dispute a debt in writing, after which the collector must cease collection and provide verification before resuming.
Question 4: Which technique is considered most effective when a consumer says they 'can't afford' to pay during a collection call?
- Threaten to sue immediately to motivate payment
- Dismiss the claim and repeat the balance owed louder
- Ask open-ended questions to understand the consumer's financial situation and explore options (Correct answer)
- End the call and call back the next day
Correct answer: Ask open-ended questions to understand the consumer's financial situation and explore options
Using open-ended questions helps the collector understand the consumer's actual financial position and identify payment arrangements that are realistic.
Question 5: Under the FDCPA, a debt collector may NOT call a consumer's workplace if:
- The consumer earns less than $50,000 per year
- The collector has reason to know the employer prohibits such calls (Correct answer)
- The debt is more than 180 days past due
- The consumer has more than one employer
Correct answer: The collector has reason to know the employer prohibits such calls
The FDCPA prohibits calling a consumer at their place of employment when the collector knows or has reason to know that the employer does not permit such calls.
Question 6: What is 'skip tracing' in the context of telephone collections?
- Recording collection calls for compliance purposes
- The process of locating a debtor who has moved or whose contact information is outdated (Correct answer)
- Sending certified letters to a debtor's last known address
- Calculating accrued interest on overdue accounts
Correct answer: The process of locating a debtor who has moved or whose contact information is outdated
Skip tracing is the investigative process of locating a consumer whose current address or phone number is unknown to the collector.
Question 7: When leaving a voicemail for a consumer, a compliant debt collector should:
- State the full account balance and name of the original creditor
- Leave a message that avoids revealing the nature of the call to third parties while providing a callback number (Correct answer)
- Mention that legal action will be taken unless the consumer calls back
- Always leave messages with a family member instead
Correct answer: Leave a message that avoids revealing the nature of the call to third parties while providing a callback number
Voicemails must be crafted to avoid disclosing debt-related information to third parties who may hear the message, while still enabling the consumer to return the call.
PCS Telephone Collection Communication 2
Under the FDCPA, when a consumer requests in writing that a debt collector cease further communication, what must the debt collector do?