NEVADA COLLECTION AGENCY MANAGER EXAM PRACTICE TEST BANK
NEVADA (NV) COLLECTION AGENCY MANAGER
EXAM WITH ANSWERS & RATIONALES GRADED A+
Q1.
Under Nevada law, who regulates collection agencies?
A. Nevada Department of Taxation
B. Nevada Secretary of State
C. Nevada Financial Institutions Division (FID)
D. Nevada Consumer Affairs Office
Answer: C. Nevada Financial Institutions Division (FID)
Rationale: The FID regulates collection agencies under NRS Chapter 649,
including licensing, compliance, and enforcement.
Q2.
According to the FDCPA, a debt collector cannot contact a debtor before what
time of day?
A. 7:00 AM
B. 8:00 AM
C. 9:00 AM
D. 10:00 AM
Answer: B. 8:00 AM
Rationale: FDCPA restricts collection calls before 8:00 AM and after 9:00 PM
local time, unless the debtor has consented.
Q3.
Which Nevada statute governs collection agencies?
A. NRS Chapter 622
B. NRS Chapter 649
C. NRS Chapter 645
D. NRS Chapter 681
Answer: B. NRS Chapter 649
Rationale: NRS Chapter 649 specifically regulates collection agencies and
managers, outlining bonding, licensing, and conduct rules.
Q4.
What is the minimum bond amount required for a Nevada collection agency?
A. $10,000
B. $20,000
,NEVADA COLLECTION AGENCY MANAGER EXAM PRACTICE TEST BANK
C. $25,000
D. $35,000
Answer: D. $35,000
Rationale: Nevada law requires agencies to maintain a surety bond of $35,000 to
protect clients and consumers against misconduct.
Q5.
If a debtor disputes a debt in writing within 30 days, what must a collection agency
do?
A. Stop collection until debt is verified
B. Ignore the dispute and continue
C. Immediately close the account
D. Report the dispute to the credit bureau only
Answer: A. Stop collection until debt is verified
Rationale: Under FDCPA, agencies must suspend collection and provide written
verification of the debt before resuming.
Q6.
A collection manager must ensure that all client funds are deposited into what type
of account?
A. Operating account
B. Trust account
C. Investment account
D. Reserve account
Answer: B. Trust account
Rationale: Nevada law requires client funds to be maintained in a trust account to
avoid commingling with agency operating funds.
Q7.
Which federal act governs credit reporting practices?
A. Truth in Lending Act (TILA)
B. Fair Debt Collection Practices Act (FDCPA)
C. Fair Credit Reporting Act (FCRA)
D. Equal Credit Opportunity Act (ECOA)
Answer: C. Fair Credit Reporting Act (FCRA)
Rationale: FCRA governs accuracy, fairness, and privacy of consumer credit
reporting, which collection agencies must comply with.
,NEVADA COLLECTION AGENCY MANAGER EXAM PRACTICE TEST BANK
Q8.
How often must a Nevada Collection Agency Manager license be renewed?
A. Every 6 months
B. Annually
C. Every 2 years
D. Every 3 years
Answer: B. Annually
Rationale: Licenses must be renewed yearly, along with updated fees and proof of
compliance with state requirements.
Q9.
Which of the following is considered a prohibited practice under the FDCPA?
A. Calling between 9 AM and 5 PM
B. Using abusive or threatening language
C. Sending written notices of debt
D. Negotiating a payment plan
Answer: B. Using abusive or threatening language
Rationale: The FDCPA bans harassment, abuse, and threats in any form of
communication with consumers.
Q10.
In Nevada, which entity must hold the surety bond for a licensed collection
agency?
A. Nevada State Treasurer
B. Nevada Financial Institutions Division
C. Federal Trade Commission
D. Internal Revenue Service
Answer: B. Nevada Financial Institutions Division
Rationale: Bonds are filed with the Nevada FID to ensure consumer protection
and compliance with NRS 649.
Q11.
What is the maximum time frame allowed under the FDCPA for a consumer to
request debt validation?
A. 10 days
B. 15 days
C. 30 days
D. 60 days
, NEVADA COLLECTION AGENCY MANAGER EXAM PRACTICE TEST BANK
Answer: C. 30 days
Rationale: FDCPA grants consumers 30 days from initial notice to dispute or
request validation of a debt.
Q12.
In Nevada, a collection agency must maintain business records for how many
years?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Answer: D. 5 years
Rationale: NRS 649 requires agencies to retain business and transaction records
for at least 5 years.
Q13.
Which federal law restricts the use of automatic dialers and prerecorded messages?
A. FDCPA
B. FCRA
C. TCPA
D. ECOA
Answer: C. TCPA (Telephone Consumer Protection Act)
Rationale: TCPA regulates robocalls, texts, and prerecorded messages to protect
consumer privacy.
Q14.
Which of the following is not required on the initial written debt notice under
FDCPA?
A. Amount of the debt
B. Name of the creditor
C. Statement of consumer’s right to dispute
D. Debtor’s credit score
Answer: D. Debtor’s credit score
Rationale: FDCPA requires the amount, creditor name, and 30-day dispute
statement, but not credit scores.
Q15.
A Nevada collection agency’s trust account must be reconciled at least:
A. Weekly
B. Monthly
NEVADA (NV) COLLECTION AGENCY MANAGER
EXAM WITH ANSWERS & RATIONALES GRADED A+
Q1.
Under Nevada law, who regulates collection agencies?
A. Nevada Department of Taxation
B. Nevada Secretary of State
C. Nevada Financial Institutions Division (FID)
D. Nevada Consumer Affairs Office
Answer: C. Nevada Financial Institutions Division (FID)
Rationale: The FID regulates collection agencies under NRS Chapter 649,
including licensing, compliance, and enforcement.
Q2.
According to the FDCPA, a debt collector cannot contact a debtor before what
time of day?
A. 7:00 AM
B. 8:00 AM
C. 9:00 AM
D. 10:00 AM
Answer: B. 8:00 AM
Rationale: FDCPA restricts collection calls before 8:00 AM and after 9:00 PM
local time, unless the debtor has consented.
Q3.
Which Nevada statute governs collection agencies?
A. NRS Chapter 622
B. NRS Chapter 649
C. NRS Chapter 645
D. NRS Chapter 681
Answer: B. NRS Chapter 649
Rationale: NRS Chapter 649 specifically regulates collection agencies and
managers, outlining bonding, licensing, and conduct rules.
Q4.
What is the minimum bond amount required for a Nevada collection agency?
A. $10,000
B. $20,000
,NEVADA COLLECTION AGENCY MANAGER EXAM PRACTICE TEST BANK
C. $25,000
D. $35,000
Answer: D. $35,000
Rationale: Nevada law requires agencies to maintain a surety bond of $35,000 to
protect clients and consumers against misconduct.
Q5.
If a debtor disputes a debt in writing within 30 days, what must a collection agency
do?
A. Stop collection until debt is verified
B. Ignore the dispute and continue
C. Immediately close the account
D. Report the dispute to the credit bureau only
Answer: A. Stop collection until debt is verified
Rationale: Under FDCPA, agencies must suspend collection and provide written
verification of the debt before resuming.
Q6.
A collection manager must ensure that all client funds are deposited into what type
of account?
A. Operating account
B. Trust account
C. Investment account
D. Reserve account
Answer: B. Trust account
Rationale: Nevada law requires client funds to be maintained in a trust account to
avoid commingling with agency operating funds.
Q7.
Which federal act governs credit reporting practices?
A. Truth in Lending Act (TILA)
B. Fair Debt Collection Practices Act (FDCPA)
C. Fair Credit Reporting Act (FCRA)
D. Equal Credit Opportunity Act (ECOA)
Answer: C. Fair Credit Reporting Act (FCRA)
Rationale: FCRA governs accuracy, fairness, and privacy of consumer credit
reporting, which collection agencies must comply with.
,NEVADA COLLECTION AGENCY MANAGER EXAM PRACTICE TEST BANK
Q8.
How often must a Nevada Collection Agency Manager license be renewed?
A. Every 6 months
B. Annually
C. Every 2 years
D. Every 3 years
Answer: B. Annually
Rationale: Licenses must be renewed yearly, along with updated fees and proof of
compliance with state requirements.
Q9.
Which of the following is considered a prohibited practice under the FDCPA?
A. Calling between 9 AM and 5 PM
B. Using abusive or threatening language
C. Sending written notices of debt
D. Negotiating a payment plan
Answer: B. Using abusive or threatening language
Rationale: The FDCPA bans harassment, abuse, and threats in any form of
communication with consumers.
Q10.
In Nevada, which entity must hold the surety bond for a licensed collection
agency?
A. Nevada State Treasurer
B. Nevada Financial Institutions Division
C. Federal Trade Commission
D. Internal Revenue Service
Answer: B. Nevada Financial Institutions Division
Rationale: Bonds are filed with the Nevada FID to ensure consumer protection
and compliance with NRS 649.
Q11.
What is the maximum time frame allowed under the FDCPA for a consumer to
request debt validation?
A. 10 days
B. 15 days
C. 30 days
D. 60 days
, NEVADA COLLECTION AGENCY MANAGER EXAM PRACTICE TEST BANK
Answer: C. 30 days
Rationale: FDCPA grants consumers 30 days from initial notice to dispute or
request validation of a debt.
Q12.
In Nevada, a collection agency must maintain business records for how many
years?
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Answer: D. 5 years
Rationale: NRS 649 requires agencies to retain business and transaction records
for at least 5 years.
Q13.
Which federal law restricts the use of automatic dialers and prerecorded messages?
A. FDCPA
B. FCRA
C. TCPA
D. ECOA
Answer: C. TCPA (Telephone Consumer Protection Act)
Rationale: TCPA regulates robocalls, texts, and prerecorded messages to protect
consumer privacy.
Q14.
Which of the following is not required on the initial written debt notice under
FDCPA?
A. Amount of the debt
B. Name of the creditor
C. Statement of consumer’s right to dispute
D. Debtor’s credit score
Answer: D. Debtor’s credit score
Rationale: FDCPA requires the amount, creditor name, and 30-day dispute
statement, but not credit scores.
Q15.
A Nevada collection agency’s trust account must be reconciled at least:
A. Weekly
B. Monthly
