CIP Skip Tracing & Debtor Location 2 — Questions and Answers
Question 1: Under the FDCPA, which of the following is permitted when contacting a third party to obtain a debtor's location information?
- Disclosing to the third party that the debtor owes a debt
- Contacting the third party multiple times without restriction
- Identifying yourself and stating that you are confirming location information only (Correct answer)
- Using a false name to gather the debtor's contact information
Correct answer: Identifying yourself and stating that you are confirming location information only
The FDCPA permits collectors to identify themselves and state they are seeking location information, but prohibits revealing that the individual owes a debt to third parties.
Question 2: Under the FDCPA, how many times may a collector generally contact the same third party for a debtor's location information?
- As many times as necessary to locate the debtor
- Only once, unless the third party requests a callback (Correct answer)
- Up to three times per calendar week
- Twice per account, regardless of outcome
Correct answer: Only once, unless the third party requests a callback
FDCPA Section 804 generally limits collectors to contacting a given third party only once for location information, unless that party requests a return call.
Question 3: What does 'NCOA' stand for in the context of skip tracing?
- National Credit Officers Association
- National Change of Address (Correct answer)
- Non-Compliant Outstanding Accounts
- National Collection Operations Act
Correct answer: National Change of Address
NCOA (National Change of Address) is a USPS database tracking address updates, widely used in skip tracing to obtain current addresses for debtors who have relocated.
Question 4: What is a 'reverse lookup' used for in skip tracing?
- Identifying a debtor by working backward from a known phone number or address (Correct answer)
- Calculating the reverse amortization schedule of an outstanding debt
- Undoing an erroneous credit reporting entry on a consumer's file
- Returning improperly collected funds to a debtor
Correct answer: Identifying a debtor by working backward from a known phone number or address
A reverse lookup allows a collector to begin with a known phone number or address and identify the individual associated with it, aiding in debtor location.
Question 5: When a debtor has filed for bankruptcy, skip tracing efforts must account for which critical legal protection?
- The Right to Financial Privacy Act restrictions
- The automatic stay provision (Correct answer)
- The statute of limitations defense
- The Fair Credit Reporting Act dispute resolution process
Correct answer: The automatic stay provision
A bankruptcy filing triggers an automatic stay that immediately halts most collection activities, including active skip tracing efforts intended to pursue the debtor for collection.
Question 6: Social media skip tracing must primarily comply with which regulatory concern?
- Copyright law governing platform-hosted content
- Privacy regulations and platform terms of service agreements (Correct answer)
- International trade law restrictions on data transfer
- Securities law disclosure requirements
Correct answer: Privacy regulations and platform terms of service agreements
Social media skip tracing must respect consumer privacy regulations and the terms of service of the platforms, which may prohibit creating fake profiles or unauthorized data collection.
Question 7: Which legislation restricts the permissible purposes for accessing consumer reports, including when used for skip tracing?
- The Fair Debt Collection Practices Act (FDCPA)
- The Fair Credit Reporting Act (FCRA) (Correct answer)
- The Telephone Consumer Protection Act (TCPA)
- The Electronic Communications Privacy Act (ECPA)
Correct answer: The Fair Credit Reporting Act (FCRA)
The FCRA defines permissible purposes for accessing consumer reports; debt collection is a listed permissible purpose, but collectors must comply with its access and use restrictions.
CIP Skip Tracing & Debtor Location 2
Under the FDCPA, which of the following is permitted when contacting a third party to obtain a debtor's location information?