Practice Quiz

Paralegal Exam Prep

Category - Legal Envrmt

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The Fair Debt Collection Practices Act prohibits collection agencies from engaging in which of the following practices?
  1. Communication with third parties.
  2. Calling before 8:00 a.m.
  3. Contacting a person known to be represented by an attorney.
  4. Communicating with consumers at their place of employment after being told that it is not permitted.
  5. All of the above.
Explanation
Answer: E. The Fair Debt Collection Practices Act prohibits collection a collection agency from engaging in communication with third parties, calling before 8:00 a.m., contacting a person who is known to be represented by an attorney, and communicating with consumers at their place of employment after being told it is not permitted. The Federal Trade Commission enforces the Fair Debt Collection Practices Act. The penalty for violations include damages equal to the actual loss by the affected consumer, plus attorney's fees.
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