Asset Recovery Specialist Legal Compliance Flashcards
7 cards from real CARS practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Asset Recovery Specialist Legal Compliance flashcards as text
After a vehicle is repossessed, the lender sells it at auction for less than the outstanding loan balance. The remaining amount owed by the borrower is called:
Answer: Deficiency balance
The deficiency balance is the difference between what the vehicle sold for and the total amount owed, which the borrower may still legally owe.
Under the FDCPA, which of the following constitutes an example of a prohibited 'deceptive' collection practice?
Answer: Falsely implying a collector is an attorney to pressure payment
Falsely representing that a collector is an attorney is explicitly prohibited as a deceptive practice under Section 807 of the FDCPA.
Which agency has primary enforcement authority over the FDCPA for most third-party debt collectors?
Answer: Consumer Financial Protection Bureau (CFPB)
The CFPB has primary supervisory and enforcement authority over most third-party debt collectors under the FDCPA.
A debtor notifies a collector that they are represented by an attorney. Under the FDCPA, the collector must:
Answer: Cease all contact with the debtor and communicate only with the attorney
Once a collector knows the debtor is represented by an attorney, all further communications must go through that attorney.
The FDCPA debt validation notice must be sent to the debtor within how many days of the initial communication?
Answer: 5 days
Section 809 of the FDCPA requires that collectors send a written validation notice within five days of the initial communication if it was not provided in that communication.
Which of the following best describes the legal doctrine of 'redemption' in the context of vehicle repossession?
Answer: The borrower's right to reclaim the vehicle by paying the full outstanding balance before sale
Redemption allows a borrower to recover repossessed collateral by paying the entire outstanding debt plus repossession costs before the lender completes the sale.
State licensing requirements for repossession agents are primarily intended to:
Answer: Ensure agents meet competency and background standards to protect consumers
State licensing requirements establish minimum standards for training, background checks, and conduct to protect consumers and ensure professional accountability.