FDCPA

Question 1

T or F

A creditor collecting their own debts in their own name is not a debt collector.

Answer 1

TRUE

Question 2

An affiliate can collect debts for another affiliate without being considered a debt collector, so long as:

Answer 2

* it only collects for related entities * its principal business is not debt collection

Question 3

The law prohibits debt collector communications with a consumer during what times?

Answer 3

unusual time or place or at a time or place which should be known to be inconvenient, such as before 8:00am or after 9:00pm, local time at the consumer’s location

Question 4

The law prohibits debt collector communications with a consumer when the debt collector knows:

Answer 4

the consumer is represented by an attorney in connection with the debt and the attorney’s name and address are known or can be readily ascertained (unless the attorney fails to respond within a reasonable period of time to communication from the debt collector)

Question 5

The law prohibits debt collector communications with a consumer at what places?

Answer 5

at the consumer’s place of employment if the debt collector knows or has reason to know that the employer forbids such communication

Question 6

The law prohibits debt collector communications with a consumer when the consumer has:

Answer 6

requested in writing and asked that he collector ceases all further contact. The debt collector may, in such circumstances, notify the debtor of any specific remedies available to it, notify the debtor that collection efforts are being terminated, or notify the borrower that the creditor is invoking a specific remedy.

Question 7

When a debt collector is acquiring location information from a third party, it may not state or communicate that _______________.

Answer 7

the consumer owes a debt

Question 8

Except for communication relating to the consumer’s location, the collector must obtain ______________ or the _________________ before communicating with a third party about a debt.

Answer 8

* permission from the consumer

* express permission of a court OR

* as reasonably necessary to effectuate a post judgment remedy

Question 9

T or F

Debt collectors may not harass the consumer by threatening to harm the reputation of any person when collecting a debt.

Answer 9

TRUE

Question 10

Debt collectors must fairly represent the status, _________, and _________ of the debt.

Answer 10

* amount

* character

Question 11

Debt collectors may not imply that the consumer committed a _________.

Answer 11

crime

Question 12

Debt collectors must disclose in their first communication that:

Answer 12

they are trying to collect a debt and any information will be used for that purpose

Question 13

If a debt collector agrees to accept postdated checks, they may not:

Answer 13

* solicit for the purpose of instituting criminal action

* deposit before the date on check

* proceed on depositing a check that is postdated more than 5 days, unless they notify the consumer at least 3 days and no more than 10 days before depositing

Question 14

T or F

Debt collectors may communicate regarding a debt via postcard.

Answer 14

FALSE

Question 15

Consumer’s must be sent debt validation in writing within ___________ of initial communication unless information is contained in initial communication or _____________.

Answer 15

* 5 calendar days

* consumer pays the debt

Question 16

If the consumer disputes a debt in writing within 30 days, all collection activity must stop until _________.

Answer 16

the debt is verified

Question 17

If the consumer owes multiple debts and makes any single payment, the debt collector must apply the debt ______________.

Answer 17

in accordance with the consumer’s direction

Question 18

FDCPA violations can have civil liability up to:

Answer 18

* actual damages

* costs and attorney’s fees

* statutory damages up to $1000 in an individual case or up to lesser of $500,000 or 1% of the collector’s net worth in a class action

Question 19

What are the three types of communication that may be sent to a consumer who has given a written notice to a debt collector to cease communications:

Answer 19

(1) that further collection efforts will cease;
(2) that the collector may invoke a specific remedy ordinarily invoked by that collector; or
(3) that the collector intends to invoke a specific remedy

Question 20

FDCPA covers ‘debt collectors’ on consumer debt which is defined as:

Answer 20

person or entity who’s principal purpose is to collect debts owed to others