Fair Debt Collection Practices Act – Final Assessment
Study Guide
What is the purpose of the Fair Debt Collection Practices Act (FDCPA)? - ANS✔✔ A. It is a law
passed to protect creditors in collecting debts
B. It is a law passed to protect consumers from abusive debt collectors
C. It is a law passed to ensure that consumers validate a debt
D. It is a law passed to protect banks from third party debt collectors
Allan, a debt collector with ABC Collection Agency, called a customer and told her that his
company will have her arrested if the debt was not brought current by the next payment due
date. Is that allowed? - ANS✔✔ A. No, if such action will not or cannot be taken the
representation or implication that nonpayment of any debt will result in the arrest or
imprisonment of any person violates the Fair Debt Collection Practices Act (FDCPA)
B. Yes, if a person does not pay, he or she has committed fraud and should be arrested
C. Yes, if state law establishes ''debtors prison''
D. No, a collector may not inform the customer about this action by phone, but may threaten
arrest or imprisonment as long as the debt collector notifies the individual in writing of this
action
If a debt collector violates the law, which action may a debtor take? - ANS✔✔ A. Sue the
collector in a state or federal court within one year from the date the law was violated
, B. If the debtor owes the amount being collected, the debtor has no rights
C. Sue the debtor individually only (class action suits not allowed under the Fair Debt Collection
Practices Act [FDCPA])
D. Refuse to pay the debt
Royal Bank has its branch employees contact customers to attempt to collect past due amounts
owed due to checking account overdrafts. Are these employees subject to the Fair Debt
Collection Practices Act (FDCPA)? - ANS✔✔ A. No, checking account overdrafts are not loans
subject to the FDCPA
B. No, the FDCPA does not apply to the original creditor, but state law may apply
C. Yes, the employees are collecting a debt, so anyone acting as a collector must follow the
FDCPA
D. Yes, but only if the employees are also classified as collectors. The law does not apply to
tellers or CSRs
Which entity has rulemaking authority regarding debt collectors' conduct under the Fair Debt
Collection Practices Act (FDCPA)? - ANS✔✔ A. The Office of the Comptroller of the Currency
(OCC)
B. The Consumer Financial Protection Bureau (Bureau)
C. The Federal Deposit Insurance Corporation (FDIC)
Study Guide
What is the purpose of the Fair Debt Collection Practices Act (FDCPA)? - ANS✔✔ A. It is a law
passed to protect creditors in collecting debts
B. It is a law passed to protect consumers from abusive debt collectors
C. It is a law passed to ensure that consumers validate a debt
D. It is a law passed to protect banks from third party debt collectors
Allan, a debt collector with ABC Collection Agency, called a customer and told her that his
company will have her arrested if the debt was not brought current by the next payment due
date. Is that allowed? - ANS✔✔ A. No, if such action will not or cannot be taken the
representation or implication that nonpayment of any debt will result in the arrest or
imprisonment of any person violates the Fair Debt Collection Practices Act (FDCPA)
B. Yes, if a person does not pay, he or she has committed fraud and should be arrested
C. Yes, if state law establishes ''debtors prison''
D. No, a collector may not inform the customer about this action by phone, but may threaten
arrest or imprisonment as long as the debt collector notifies the individual in writing of this
action
If a debt collector violates the law, which action may a debtor take? - ANS✔✔ A. Sue the
collector in a state or federal court within one year from the date the law was violated
, B. If the debtor owes the amount being collected, the debtor has no rights
C. Sue the debtor individually only (class action suits not allowed under the Fair Debt Collection
Practices Act [FDCPA])
D. Refuse to pay the debt
Royal Bank has its branch employees contact customers to attempt to collect past due amounts
owed due to checking account overdrafts. Are these employees subject to the Fair Debt
Collection Practices Act (FDCPA)? - ANS✔✔ A. No, checking account overdrafts are not loans
subject to the FDCPA
B. No, the FDCPA does not apply to the original creditor, but state law may apply
C. Yes, the employees are collecting a debt, so anyone acting as a collector must follow the
FDCPA
D. Yes, but only if the employees are also classified as collectors. The law does not apply to
tellers or CSRs
Which entity has rulemaking authority regarding debt collectors' conduct under the Fair Debt
Collection Practices Act (FDCPA)? - ANS✔✔ A. The Office of the Comptroller of the Currency
(OCC)
B. The Consumer Financial Protection Bureau (Bureau)
C. The Federal Deposit Insurance Corporation (FDIC)
