1. Which Michigan department regulates collection agencies?
A. Michigan Treasury
B. Department of Insurance and Financial Services (DIFS)
C. Attorney General’s Office
D. Department of Labor
ANSWER : B
Explanation: Michigan collection agencies are regulated by the Department of
Insurance and Financial Services (DIFS).
2. Which law primarily governs collection agencies in Michigan?
A. Fair Credit Reporting Act
B. Michigan Occupational Code
C. Michigan Collection Practices Act
D. Uniform Commercial Code
ANSWER : C
Explanation: The Michigan Collection Practices Act (MCPA) regulates debt
collection conduct in Michigan.
3. Who must be licensed under Michigan law?
A. Only debt collectors
B. Only collection agency owners
C. Collection agencies and managers
D. Creditors collecting their own debts
ANSWER : C
Explanation: Michigan requires collection agencies and collection agency
managers to be licensed.
,4. Which entity issues collection agency licenses in Michigan?
A. Secretary of State
B. Michigan Legislature
C. DIFS
D. State Police
ANSWER : C
Explanation: DIFS issues and oversees collection agency licenses.
5. A Michigan Collection Agency Manager license is required for:
A. Clerical staff
B. Debt buyers
C. Supervising collection activities
D. Process servers
ANSWER : C
Explanation: Managers supervising or directing collection activities must be
licensed.
6. Which federal law applies to most consumer debt collections?
A. Truth in Lending Act
B. FDCPA
C. FACTA
D. ECOA
ANSWER : B
Explanation: The Fair Debt Collection Practices Act (FDCPA) governs
consumer debt collection nationwide.
7. Which debt is covered by the FDCPA?
A. Business loans
B. Child support
C. Personal credit card debt
D. Tax debt
,ANSWER : C
Explanation: FDCPA applies to consumer debts for personal, family, or
household purposes.
8. A collection agency may call a consumer at work:
A. Anytime
B. Only with employer consent
C. If the employer prohibits calls
D. If the collector knows calls are not allowed
ANSWER : D
Explanation: FDCPA prohibits workplace calls if the collector knows or
should know the employer disallows them.
9. What is the maximum time window for collection calls under FDCPA?
A. 7 a.m. – 7 p.m.
B. 8 a.m. – 9 p.m.
C. 9 a.m. – 8 p.m.
D. Anytime
ANSWER : B
Explanation: Calls are limited to 8 a.m. – 9 p.m. local time unless permitted
otherwise.
10. Which action is considered harassment?
A. One follow-up call
B. Accurate credit reporting
C. Repeated calls intended to annoy
D. Sending a validation notice
ANSWER : C
Explanation: Repeated or continuous calls intended to harass violate FDCPA.
11. A validation notice must be sent within:
A. 3 days
B. 5 days
, C. 10 days
D. 30 days
ANSWER : B
Explanation: Collectors must send a written validation notice within 5 days
of initial contact.
12. The validation notice must include:
A. Collector’s commission rate
B. Consumer’s credit score
C. Amount of the debt
D. Employer information
ANSWER : C
Explanation: FDCPA requires disclosure of the amount of the debt, creditor
name, and dispute rights.
13. A consumer disputes a debt in writing within 30 days. The collector
must:
A. Continue collecting
B. File a lawsuit
C. Cease collection until verification
D. Close the account
ANSWER : C
Explanation: Collection must stop until debt verification is provided.
14. Which is a prohibited misrepresentation?
A. Truthful balance statement
B. Claiming to be an attorney when not
C. Providing payment options
D. Sending account statements
ANSWER : B
Explanation: False claims of legal authority violate FDCPA and Michigan law.
15. Under Michigan law, threatening arrest for nonpayment is:
A. Michigan Treasury
B. Department of Insurance and Financial Services (DIFS)
C. Attorney General’s Office
D. Department of Labor
ANSWER : B
Explanation: Michigan collection agencies are regulated by the Department of
Insurance and Financial Services (DIFS).
2. Which law primarily governs collection agencies in Michigan?
A. Fair Credit Reporting Act
B. Michigan Occupational Code
C. Michigan Collection Practices Act
D. Uniform Commercial Code
ANSWER : C
Explanation: The Michigan Collection Practices Act (MCPA) regulates debt
collection conduct in Michigan.
3. Who must be licensed under Michigan law?
A. Only debt collectors
B. Only collection agency owners
C. Collection agencies and managers
D. Creditors collecting their own debts
ANSWER : C
Explanation: Michigan requires collection agencies and collection agency
managers to be licensed.
,4. Which entity issues collection agency licenses in Michigan?
A. Secretary of State
B. Michigan Legislature
C. DIFS
D. State Police
ANSWER : C
Explanation: DIFS issues and oversees collection agency licenses.
5. A Michigan Collection Agency Manager license is required for:
A. Clerical staff
B. Debt buyers
C. Supervising collection activities
D. Process servers
ANSWER : C
Explanation: Managers supervising or directing collection activities must be
licensed.
6. Which federal law applies to most consumer debt collections?
A. Truth in Lending Act
B. FDCPA
C. FACTA
D. ECOA
ANSWER : B
Explanation: The Fair Debt Collection Practices Act (FDCPA) governs
consumer debt collection nationwide.
7. Which debt is covered by the FDCPA?
A. Business loans
B. Child support
C. Personal credit card debt
D. Tax debt
,ANSWER : C
Explanation: FDCPA applies to consumer debts for personal, family, or
household purposes.
8. A collection agency may call a consumer at work:
A. Anytime
B. Only with employer consent
C. If the employer prohibits calls
D. If the collector knows calls are not allowed
ANSWER : D
Explanation: FDCPA prohibits workplace calls if the collector knows or
should know the employer disallows them.
9. What is the maximum time window for collection calls under FDCPA?
A. 7 a.m. – 7 p.m.
B. 8 a.m. – 9 p.m.
C. 9 a.m. – 8 p.m.
D. Anytime
ANSWER : B
Explanation: Calls are limited to 8 a.m. – 9 p.m. local time unless permitted
otherwise.
10. Which action is considered harassment?
A. One follow-up call
B. Accurate credit reporting
C. Repeated calls intended to annoy
D. Sending a validation notice
ANSWER : C
Explanation: Repeated or continuous calls intended to harass violate FDCPA.
11. A validation notice must be sent within:
A. 3 days
B. 5 days
, C. 10 days
D. 30 days
ANSWER : B
Explanation: Collectors must send a written validation notice within 5 days
of initial contact.
12. The validation notice must include:
A. Collector’s commission rate
B. Consumer’s credit score
C. Amount of the debt
D. Employer information
ANSWER : C
Explanation: FDCPA requires disclosure of the amount of the debt, creditor
name, and dispute rights.
13. A consumer disputes a debt in writing within 30 days. The collector
must:
A. Continue collecting
B. File a lawsuit
C. Cease collection until verification
D. Close the account
ANSWER : C
Explanation: Collection must stop until debt verification is provided.
14. Which is a prohibited misrepresentation?
A. Truthful balance statement
B. Claiming to be an attorney when not
C. Providing payment options
D. Sending account statements
ANSWER : B
Explanation: False claims of legal authority violate FDCPA and Michigan law.
15. Under Michigan law, threatening arrest for nonpayment is:
