Maryland Collection Agency Manager Exam
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1. Which law primarily governs debt collection practices in the
United States?
A. Fair Credit Reporting Act
B. Fair Debt Collection Practices Act
C. Truth in Lending Act
D. Equal Credit Opportunity Act
Answer: B
Rationale: The Fair Debt Collection Practices Act (FDCPA)
regulates how third-party debt collectors may conduct business
and protects consumers from abusive collection practices.
2. A Maryland collection agency manager must primarily ensure
compliance with which state authority?
A. Maryland Department of Transportation
B. Maryland Insurance Administration
C. Maryland Commissioner of Financial Regulation
D. Maryland Tax Authority
Answer: C
Rationale: Collection agencies in Maryland are regulated by the
Commissioner of Financial Regulation under the Maryland
Department of Labor.
3. Which of the following is prohibited under the FDCPA?
A. Sending written validation notice
, B. Contacting debtor’s attorney
C. Harassing or abusive conduct
D. Providing account statements
Answer: C
Rationale: The FDCPA strictly prohibits harassment, abuse, or
oppressive conduct in debt collection activities.
4. A debt collector may generally contact a consumer at work if:
A. The employer allows it
B. The consumer has no phone
C. The collector is unable to reach them elsewhere
D. The consumer has not prohibited it
Answer: D
Rationale: Contact at work is allowed unless the consumer
informs the collector that such communication is not permitted.
5. What is the required validation period after initial contact with a
debtor?
A. 3 days
B. 5 days
C. 10 days
D. 30 days
Answer: C
Rationale: Collectors must send a validation notice within 5 days
of initial contact, and consumers have 30 days to dispute.
6. Which action would most likely violate collection laws?
A. Sending a written notice of debt
B. Reporting accurate credit information
C. Threatening legal action not intended
D. Requesting payment plan
Answer: C
, Rationale: Threatening legal action that is not actually intended
or permissible is a violation of debt collection regulations.
7. What must a collection agency manager ensure regarding
employee conduct?
A. Employees work overtime
B. Employees avoid consumer complaints
C. Employees follow FDCPA and state laws
D. Employees increase collection pressure
Answer: C
Rationale: Managers are responsible for ensuring all employees
comply with federal and state debt collection laws.
8. A “cease and desist” request from a debtor means:
A. Stop all reporting to credit bureaus
B. Stop all collection communications
C. Stop legal proceedings
D. Stop interest accrual
Answer: B
Rationale: A cease communication request requires the collector
to stop contacting the debtor except for limited legal notices.
9. Which of the following is considered a “communication” under
FDCPA?
A. Internal agency memo
B. Contact with debtor’s neighbor
C. Letter to debtor
D. Credit bureau reporting only
Answer: C
Rationale: Any written or oral contact with the debtor regarding
a debt is considered communication.
With Actual Questions & Verified
Answers,Explained Rationales/Expert Verified
For Guaranteed Pass 2026/Latest
Update/Instant Download Pdf
1. Which law primarily governs debt collection practices in the
United States?
A. Fair Credit Reporting Act
B. Fair Debt Collection Practices Act
C. Truth in Lending Act
D. Equal Credit Opportunity Act
Answer: B
Rationale: The Fair Debt Collection Practices Act (FDCPA)
regulates how third-party debt collectors may conduct business
and protects consumers from abusive collection practices.
2. A Maryland collection agency manager must primarily ensure
compliance with which state authority?
A. Maryland Department of Transportation
B. Maryland Insurance Administration
C. Maryland Commissioner of Financial Regulation
D. Maryland Tax Authority
Answer: C
Rationale: Collection agencies in Maryland are regulated by the
Commissioner of Financial Regulation under the Maryland
Department of Labor.
3. Which of the following is prohibited under the FDCPA?
A. Sending written validation notice
, B. Contacting debtor’s attorney
C. Harassing or abusive conduct
D. Providing account statements
Answer: C
Rationale: The FDCPA strictly prohibits harassment, abuse, or
oppressive conduct in debt collection activities.
4. A debt collector may generally contact a consumer at work if:
A. The employer allows it
B. The consumer has no phone
C. The collector is unable to reach them elsewhere
D. The consumer has not prohibited it
Answer: D
Rationale: Contact at work is allowed unless the consumer
informs the collector that such communication is not permitted.
5. What is the required validation period after initial contact with a
debtor?
A. 3 days
B. 5 days
C. 10 days
D. 30 days
Answer: C
Rationale: Collectors must send a validation notice within 5 days
of initial contact, and consumers have 30 days to dispute.
6. Which action would most likely violate collection laws?
A. Sending a written notice of debt
B. Reporting accurate credit information
C. Threatening legal action not intended
D. Requesting payment plan
Answer: C
, Rationale: Threatening legal action that is not actually intended
or permissible is a violation of debt collection regulations.
7. What must a collection agency manager ensure regarding
employee conduct?
A. Employees work overtime
B. Employees avoid consumer complaints
C. Employees follow FDCPA and state laws
D. Employees increase collection pressure
Answer: C
Rationale: Managers are responsible for ensuring all employees
comply with federal and state debt collection laws.
8. A “cease and desist” request from a debtor means:
A. Stop all reporting to credit bureaus
B. Stop all collection communications
C. Stop legal proceedings
D. Stop interest accrual
Answer: B
Rationale: A cease communication request requires the collector
to stop contacting the debtor except for limited legal notices.
9. Which of the following is considered a “communication” under
FDCPA?
A. Internal agency memo
B. Contact with debtor’s neighbor
C. Letter to debtor
D. Credit bureau reporting only
Answer: C
Rationale: Any written or oral contact with the debtor regarding
a debt is considered communication.
