AI in Debt Collection and Loan Servicing Quiz

Answers and explanations appear as you take the quiz.

1. Under Regulation F, which pattern of calls creates a presumption of a violation?
   • More than three calls in one month about a debt
   • More than seven telephone calls within seven days about a particular debt
   • Any call made after 5 p.m. on a weekday
   • Two calls on the same day to different phone numbers
2. Which party is generally outside the FDCPA but still subject to prohibitions on unfair, deceptive or abusive practices?
   • A third-party collection agency
   • A debt buyer that purchased charged-off accounts
   • An original creditor collecting its own debts
   • A law firm regularly collecting consumer debts
3. What does Regulation F require when collectors contact consumers by email or text?
   • A clear and simple way to opt out of those communications
   • A handwritten signature from the collector
   • Approval from a court before each message
   • That messages be sent only on weekends
4. What did the FCC rule in February 2024 about AI-generated voices?
   • They are exempt from all telephone rules
   • They count as artificial voices under the Telephone Consumer Protection Act
   • They may be used only by original creditors
   • They must be disclosed in the validation notice
5. What does the guide mean by separating optimization from permission in collection systems?
   • Models choose which borrowers to sue, and lawyers approve
   • A model may rank actions, but a deterministic compliance engine must approve each one before execution
   • Borrowers must give permission before any model scores them
   • Optimization runs only on accounts that have granted consent
6. Why is a single source of truth for contact history important?
   • It lowers data storage costs
   • Counts split across a dialer, email platform and outside agency can cause frequency limits to be exceeded
   • It is needed to calculate interest
   • It lets the model contact borrowers more often
7. Why should hardship classifiers be tuned for high recall?
   • Missing a distressed borrower is costlier than an unnecessary handoff to a human
   • High recall makes the model run faster
   • Regulation F specifies a recall target
   • It reduces the number of payment plans offered
8. Why does the guide say models optimized only for dollars collected are risky?
   • They cannot process payments
   • They may push toward aggressive contact or target people least able to push back
   • They always violate the validation notice rule
   • They require original creditors to register as collectors