Michigan Fair Debt Collection Final Exam Questions Comprehensive Resource To Help You Ace Exams Includes Frequently Tested Questions With ELABORATED 100% Correct COMPLETE SOLUTIONS Guaranteed Pass First Attempt!! Current Update!!

Michigan Fair Debt Collection Final Exam Questions Comprehensive Resource To Help You Ace 2026 2027 Exams Includes Frequently Tested Questions With ELABORATED 100% Correct COMPLETE SOLUTIONS Guaranteed Pass First Attempt!! Current Update!! 1. Is a debt collector allowed to contact a debtor's employer asking for that person's address and phone number? A. No, contacting a third party violates the Fair Debt Collection Practices Act (FDCPA) unless the debtor has given express written consent B. No, only a request for information other than ''location information'' is allowed C. Yes, a debt collector may contact a third-party for location information (consumer's place of abode and telephone number at such place) D. Yes, as long as the collection agency informs the third party about the nature of the debt and the amount owed - Correct Answer: C Not answered. The correct answer is c. A is incorrect because contacting a third party for location information only does not violate the FDCPA. B is incorrect because contacting a third party to discuss a debt or obtain information other than location information does violate the FDCPA. D is incorrect because a debt collector may not discuss the debt with a third party unless the debtor has given permission to do so. 2. Joan is a debt collector and has been trying to collect two debts from an individual consumer. If the consumer makes a payment, what action must Joan take? A. Apply any payment to the disputed debt first, and then to the one the consumer admits owing B. Combine the debts into one large debt and apply any payments to the total amount owed C. Apply any payment made to the debt the consumer selects D. Collect only one debt at a time - Correct Answer: C Not answered. The correct answer is c. A, B, and D are incorrect because a debt collector must apply the payments as the consumer instructs. 3. The Dodd-Frank Act transferred authority for rulemaking regarding debt collectors' conduct under the Fair Debt Collection Practices Act (FDCPA) to which entity? A. The Consumer Financial Protection Bureau (Bureau) B. The Office of the Comptroller of the Currency (OCC) C. The Federal Deposit Insurance Corporation (FDIC) D. The Federal Reserve - Correct Answer: A Not answered. The correct answer is a. B, C, and D are incorrect because authority for this rule was transferred to the Bureau. 4. A new employee asks you about the purpose of Fair Debt Collection Practices Act (FDCPA). What should you tell the employee? A. It is a law passed to protect creditors in collecting debts B. It is a law passed to ensure that consumers validate a debt C. It is a law passed to protect consumers from abusive debt collectors D. It is a law passed to protect banks from third party debt collectors - Correct Answer: C Not answered. The correct answer is c. A is incorrect because the law is intended to protect debtors, not creditors. B is incorrect because the law allows consumers to validate a debt but does not require that they do so. D is incorrect because the FDCPA applies to 3rd party debt collectors. It does not protect banks from them. 5. A debt collector has violated the law in his attempt to collect money from Karen for a past due motorcycle loan. Which action may Karen take? A. If Karen owes the amount being collected, she has no rights B. Sue the debtor individually only (class action suits not allowed under the Fair Debt Collection Practices Act [FDCPA]) C. Refuse to pay the debt D. Karen has the right to sue a collector in a state or federal court within one year from the date the law was violated - Correct Answer: D Not answered. The correct answer is d. A is incorrect because the FDCPA gives consumer debtors multiple rights, even when the debt is legitimate. B is incorrect because the FDCPA allows class action lawsuits. C is incorrect because a debtor cannot refuse to pay a legitimate debt. 6. Which is the correct definition of "debt collector" under the Fair Debt Collection Practices Act (FDCPA)? A. The original creditor collecting its own debt B. A debt collector is anybody who regularly collects debts owed to another C. A commercial entity such as Acme Debt collection but not an individual, such as an attorney collecting debts for another D. Any entity or person collecting a debt - Correct Answer: B Not answered. The correct answer is b. A is incorrect because the FDCPA does not apply to the original creditor. C is incorrect because an individual, such as an attorney collecting a debt for another, is classified as a debt collector under the FDCPA. D is incorrect because the FDCPA applies to third parties collecting debts. 7. Karen's motorcycle loan with Vigilant Bank has been turned over to a collection agency. What does the Fair Debt Collection Practices Act (FDCPA) give Karen the right to do? A. Verbally demand that the third-party debt collector terminate all further communications B. Send a letter to the debt collector to demand termination of all future collection efforts, including the ability of the debt collector to sue to collect the debt C. Refuse to pay any legitimate debt D. Notify the debt collector in writing to cease contact - Correct Answer: D Not answered. The correct answer is d. A is incorrect because the debtor must put this request in writing. B is incorrect because notifying the collector in writing to stop contacting the debtor does not eliminate the debt. C is incorrect because the FDCPA does not give a consumer the right not to pay any legitimate debt. 8. Which debt is covered under the Fair Debt Collection Practices Act (FDCPA)? A. Larry's past due loan to purchase equipment for his landscaping business B. Sally's past due loan to open a beauty shop in her basement C. Shawn's past due loan to purchase lab equipment for his LLC D. Anita's past due home improvement loan. - Correct Answer: D Not answered. The correct answer is d. A, B, and C are incorrect because the FDCPA only covers consumer debt for personal, family, or household purposes. 9. George is a new employee and has asked you if all debts are subject to the Fair Debt Collection Practices Act (FDCPA). What should you tell George? A. No, only debts that are primarily for personal, family or household purposes B. No, only joint debts owned by a husband and wife C. Yes, if the debt is past due, the law applies D. No, it only applies to commercial debt - Correct Answer: A Not answered. The correct answer is a. B is incorrect because the FDCPA applies to individual and joint debt. C and D are incorrect because the FDCPA only covers consumer debt for personal, family, or household purposes. 10. Which option is correct regarding action a debt collector may perform to try to collect a debt? A. Contact the debtor before 8 in the morning or after 9 at night B. Contact the debtor at work even if they are told (orally or in writing) not to C. Contact the debtor directly if the debtor is represented by counsel D. Contact the debtor on holidays or weekends unless informed that such times are inconvenient - Correct Answer: D Not answered. The correct answer is d. A is incorrect because the Fair Debt Collection Practices Act (FDCPA) forbids contact before 8 a.m. or after 9 p.m. B is incorrect because a collector may not contact a consumer at work if asked not to. C is incorrect because the FDCPA forbids contacting the consumer directly if the collector knows the consumer is represented by counsel.