Unfair Practices during Debt Collection

AB

Sure, I'd be happy to explain the answer to this question!

The CRCM (Certified Regulatory Compliance Manager) exam typically covers a broad range of topics related to regulatory compliance, including consumer protection laws such as the Fair Debt Collection Practices Act (FDCPA). The FDCPA prohibits debt collectors from engaging in certain unfair, deceptive, or abusive practices when attempting to collect debts from consumers.

In the context of debt collection practices, the following options are given:

A. May collect only amount legally owed B. Postdated checks a. May not solicit for purpose of instituting criminal action b. May not deposit before date on check c. If a check is postdated longer than 5 days, must notify consumer of deposit at least 3 days and no more than 10 days before depositing C. May possibly communicate regarding a debt by postcard D. May use any language or symbol other than collector's address on any envelope except debt collector may use business name if it does not indicate it is a debt collection business.

Out of these options, only option A is a fair practice during debt collection. Debt collectors are allowed to collect only the amount legally owed, and they are prohibited from collecting any additional fees, interest, or charges that are not authorized by law.

Option B describes the rules surrounding postdated checks. While postdated checks are generally allowed, debt collectors are prohibited from using them to threaten or intimidate consumers, and they must follow certain rules when depositing them. Specifically, if a postdated check is dated more than 5 days after it is given to the debt collector, the debt collector must notify the consumer at least 3 days and no more than 10 days before depositing the check.

Option C suggests that debt collectors may communicate regarding a debt by postcard, which is not allowed under the FDCPA. Debt collectors must use discreet and private means of communication, such as mail or phone, and they are prohibited from disclosing information about a consumer's debt to third parties.

Option D suggests that debt collectors may use any language or symbol other than the collector's address on an envelope. However, debt collectors are required to use discrete and professional language and symbols on any correspondence related to debt collection, and they are prohibited from using language or symbols that suggest or imply that the correspondence relates to debt collection.

In summary, the only option that is a fair practice during debt collection is option A. Options B, C, and D describe unfair or prohibited practices under the FDCPA.