Practice Test Geeks(CARS) Certified Asset Recovery Specialist Practice Test
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Foundational Concepts & Principles 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 Foundational Concepts & Principles flashcards as text

  1. Under Article 9 of the UCC, a secured party may repossess collateral after default without judicial process only if they can do so:

    Answer: Without breaching the peace

    UCC Article 9 permits self-help repossession only when it can be accomplished without a breach of the peace.

  2. A 'deficiency balance' in asset recovery refers to:

    Answer: The amount still owed after the collateral is sold and proceeds applied to the debt

    A deficiency balance is the remaining debt after collateral sale proceeds are applied to what the debtor owes.

  3. Which federal act primarily governs the conduct of third-party debt collectors and affects asset recovery agents when collecting on accounts?

    Answer: Fair Debt Collection Practices Act (FDCPA)

    The FDCPA regulates third-party debt collectors, imposing rules on communication, harassment, and misrepresentation relevant to recovery agents.

  4. In asset recovery, 'skip tracing' is best defined as:

    Answer: Locating a debtor or collateral using investigative research techniques

    Skip tracing is the investigative process of locating a debtor or collateral through public records, databases, and other sources.

  5. A creditor's right to 'strict foreclosure' under UCC Article 9 allows the secured party to:

    Answer: Retain the collateral in full satisfaction of the debt

    Strict foreclosure under UCC 9-620 allows a secured party to retain collateral as full satisfaction of the debt, subject to debtor consent and other conditions.

  6. Which of the following best describes 'constructive possession' in an asset recovery context?

    Answer: Having legal control over collateral even without physical custody

    Constructive possession means having legal dominion or control over property even without physical custody of it.

  7. Under the UCC, after repossession the secured party must provide notice of a private sale at least how many days in advance to the debtor?

    Answer: 10 days

    UCC Article 9-611 requires that notice of a private disposition be sent at least 10 days before the sale to be considered commercially reasonable.