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
Under the Fair Credit Reporting Act (FCRA), a consumer reporting agency must investigate a consumer's dispute of inaccurate information within:
Answer: 30 days
The FCRA requires consumer reporting agencies to complete their reinvestigation of disputed information within 30 days of receiving the dispute.
Which of the following actions by a repossession agent constitutes a breach of the peace under most state laws?
Answer: Breaking a locked gate to access a vehicle in a private backyard
Breaking through a locked gate to enter private property constitutes a breach of the peace because it involves forced entry over a physical barrier.
An asset recovery company receives a 'personal property claim' from a debtor after repossession. Under most state laws, the company must:
Answer: Allow the debtor a reasonable opportunity to retrieve personal belongings
Most state laws require that debtors be notified and given a reasonable period to reclaim personal property left inside repossessed collateral.
The Servicemembers Civil Relief Act (SCRA) provides which protection related to asset repossession for active-duty military members?
Answer: Prohibition on repossession of property without a court order during active duty
The SCRA prohibits repossession of property without a court order when the servicemember made at least one payment before entering military service.
In the context of commercial vehicle repossession, which document most commonly establishes the secured party's legal right to repossess?
Answer: Security agreement and UCC financing statement
A security agreement creates the lien, and a UCC-1 financing statement perfects it, together establishing the secured party's legal right to repossess upon default.
Which of the following best describes the 'strict liability' standard applied to lenders under some state consumer protection laws regarding repossession?
Answer: The lender may be liable for violations regardless of intent or knowledge
Under strict liability standards, lenders can be held responsible for improper repossession practices even without proof of intent or direct involvement.
A borrower's vehicle is repossessed and sold at auction. The lender must provide the borrower with a notice of sale that is 'commercially reasonable.' This means the sale must be:
Answer: Advertised and conducted in a manner that reflects fair market practices
UCC Article 9 requires that every aspect of the disposition of collateral, including the method, manner, time, and place, must be commercially reasonable.