Nevada Collection Agency Manager
Licensing Exam Practice Questions And
Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
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1. Which of the following best describes the primary role of a collection
agency manager?
A. Drafting new legislation for debt collection
B. Overseeing agency operations and ensuring compliance with state
and federal laws
C. Acting as legal counsel for debtors
D. Approving bankruptcy filings
Rationale: The primary responsibility of a collection agency manager
is to supervise operations and ensure that the agency complies with
all applicable regulations.
2. Under Nevada law, a collection agency must maintain records for a
minimum of how many years?
A. 1 year
B. 3 years
C. 5 years
D. 7 years
Rationale: Nevada Revised Statutes require collection agencies to
retain records of all collection activities for at least five years to
facilitate audits and legal compliance.
3. Which federal law primarily governs the practices of debt collection
agencies in the United States?
A. Fair Credit Reporting Act
, B. Truth in Lending Act
C. Fair Debt Collection Practices Act (FDCPA)
D. Equal Credit Opportunity Act
Rationale: The FDCPA establishes the rules for how debt collectors
may interact with consumers, including prohibitions on harassment,
misrepresentation, and unfair practices.
4. What is the maximum permissible frequency a collection agency may
contact a debtor according to federal guidelines?
A. Once per month
B. No more than once every seven days per debt, unless otherwise
authorized
C. Every day
D. Twice per week
Rationale: Federal guidelines under the FDCPA restrict contact
frequency to prevent harassment, generally limiting calls to once per
week unless the debtor consents to more frequent contact.
5. Which of the following is considered an unfair debt collection
practice?
A. Sending a collection notice in writing
B. Threatening legal action that the collector cannot take
C. Reporting a valid debt to a credit bureau
D. Contacting the debtor during business hours
Rationale: Misrepresenting the consequences of nonpayment, such
as threatening legal action that cannot be taken, is classified as an
unfair or deceptive practice.
6. Before a collection agency in Nevada can commence operations, it
must:
A. Hire a minimum of five collectors
B. Obtain an annual surety bond
C. Obtain a license from the Nevada Financial Institutions Division
D. Register with the Nevada Secretary of State only
Rationale: Nevada law mandates that collection agencies must be
licensed by the Financial Institutions Division to legally operate.
7. Which document is essential for demonstrating authorization to
collect debts on behalf of a creditor?
, A. Annual tax return
B. Collection agency agreement or assignment of account
C. Employment contract
D. Credit report of the debtor
Rationale: A valid written agreement or assignment confirms that
the agency is authorized to collect debts on behalf of the creditor.
8. A manager must ensure employees follow all applicable collection
rules. Which type of training is legally recommended?
A. Customer service only
B. Financial accounting
C. Compliance and FDCPA training
D. Marketing and sales techniques
Rationale: Training in compliance and FDCPA requirements ensures
that employees understand legal obligations and avoid unlawful
collection practices.
9. Which of the following actions by a collector would violate Nevada
state law?
A. Sending monthly billing statements
B. Negotiating a payment plan
C. Disclosing debt information to a neighbor
D. Accepting partial payments
Rationale: Sharing debtor information with unauthorized third
parties constitutes a privacy violation and is prohibited.
10. When is it permissible for a collection agency to contact a
debtor’s employer?
A. Anytime to verify income
B. To demand repayment
C. Only to verify employment or wages, not to discuss debt
D. To threaten wage garnishment
Rationale: Nevada law allows contact with an employer strictly to
confirm employment or wage information; discussing the debt itself
is prohibited.
11. Which type of debt can a Nevada collection agency legally
pursue?
A. Debts discharged in bankruptcy
Licensing Exam Practice Questions And
Correct Answers (Verified Answers) Plus
Rationales 2026 Q&A | Instant
Download Pdf
1. Which of the following best describes the primary role of a collection
agency manager?
A. Drafting new legislation for debt collection
B. Overseeing agency operations and ensuring compliance with state
and federal laws
C. Acting as legal counsel for debtors
D. Approving bankruptcy filings
Rationale: The primary responsibility of a collection agency manager
is to supervise operations and ensure that the agency complies with
all applicable regulations.
2. Under Nevada law, a collection agency must maintain records for a
minimum of how many years?
A. 1 year
B. 3 years
C. 5 years
D. 7 years
Rationale: Nevada Revised Statutes require collection agencies to
retain records of all collection activities for at least five years to
facilitate audits and legal compliance.
3. Which federal law primarily governs the practices of debt collection
agencies in the United States?
A. Fair Credit Reporting Act
, B. Truth in Lending Act
C. Fair Debt Collection Practices Act (FDCPA)
D. Equal Credit Opportunity Act
Rationale: The FDCPA establishes the rules for how debt collectors
may interact with consumers, including prohibitions on harassment,
misrepresentation, and unfair practices.
4. What is the maximum permissible frequency a collection agency may
contact a debtor according to federal guidelines?
A. Once per month
B. No more than once every seven days per debt, unless otherwise
authorized
C. Every day
D. Twice per week
Rationale: Federal guidelines under the FDCPA restrict contact
frequency to prevent harassment, generally limiting calls to once per
week unless the debtor consents to more frequent contact.
5. Which of the following is considered an unfair debt collection
practice?
A. Sending a collection notice in writing
B. Threatening legal action that the collector cannot take
C. Reporting a valid debt to a credit bureau
D. Contacting the debtor during business hours
Rationale: Misrepresenting the consequences of nonpayment, such
as threatening legal action that cannot be taken, is classified as an
unfair or deceptive practice.
6. Before a collection agency in Nevada can commence operations, it
must:
A. Hire a minimum of five collectors
B. Obtain an annual surety bond
C. Obtain a license from the Nevada Financial Institutions Division
D. Register with the Nevada Secretary of State only
Rationale: Nevada law mandates that collection agencies must be
licensed by the Financial Institutions Division to legally operate.
7. Which document is essential for demonstrating authorization to
collect debts on behalf of a creditor?
, A. Annual tax return
B. Collection agency agreement or assignment of account
C. Employment contract
D. Credit report of the debtor
Rationale: A valid written agreement or assignment confirms that
the agency is authorized to collect debts on behalf of the creditor.
8. A manager must ensure employees follow all applicable collection
rules. Which type of training is legally recommended?
A. Customer service only
B. Financial accounting
C. Compliance and FDCPA training
D. Marketing and sales techniques
Rationale: Training in compliance and FDCPA requirements ensures
that employees understand legal obligations and avoid unlawful
collection practices.
9. Which of the following actions by a collector would violate Nevada
state law?
A. Sending monthly billing statements
B. Negotiating a payment plan
C. Disclosing debt information to a neighbor
D. Accepting partial payments
Rationale: Sharing debtor information with unauthorized third
parties constitutes a privacy violation and is prohibited.
10. When is it permissible for a collection agency to contact a
debtor’s employer?
A. Anytime to verify income
B. To demand repayment
C. Only to verify employment or wages, not to discuss debt
D. To threaten wage garnishment
Rationale: Nevada law allows contact with an employer strictly to
confirm employment or wage information; discussing the debt itself
is prohibited.
11. Which type of debt can a Nevada collection agency legally
pursue?
A. Debts discharged in bankruptcy
