Certified Regulatory Compliance Manager (CRCM) — Question 307

Any person in one of the following category can be debt collector:

Answer options

• A. A person operating a business whose principal purpose is to collect debts
• B. A person who regularly collects or attempts to collect debts owed to another (this includes outside counsel who collects debts on behalf of the financial institution)
• C. A creditor who collects its own debts using a name other than its own, giving the impression that a third party is collecting it
• D. A creditor who collects its own debts because of his forefathers

Correct answer: A, B, C

Explanation

Options A, B, and C correctly define types of debt collectors according to the law, as they describe the various roles individuals can play in debt collection. Option D is incorrect as it does not align with the legal definitions of a debt collector, focusing instead on a personal or familial context that is irrelevant to the definition.