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Certified consumer debt specialist practice test questions
Terms in this set (50)
One of the objectives of the CCDS certification is to:
To learn to negotiate with creditors
Why is trust important to the client/counselor relationship?
Both A and B. The client needs to feel comfortable speaking with The CCDS and money is usually a difficult topic to discuss.
Which of the following factors are not necessarily needed for a financial counseling session to be successful?
A comfortable couch. For the session to be successful the following factors are needed communication skills, listening and learning skills, and discussing sound financial principles.
Debt Settlement plans are the only solution for every individual you will speak with. True or false
In helping your clients feel comfortable in the client/counselor relationship, remember to:
Not share their personal information with other clients.
Obstacles that may prevent the CCDS from being effective in a counseling session are:
Both B and C. Being preoccupied and being distracted by words and phrases.
Prejudging a client is detrimental to the counseling session because it will impair your ability to communicate, listen and respond. True or false
Someone who uses predominately visual style of learning would most likely say:
Can I see that example again?
Verbal pacing is when you adapt your counseling style do the clients learning style. True or false
Maslow's hierarchy of needs:
Can help you to understand your clients monetary value system.
Counseling sessions can be held in what format?
All of the above. These include Internet counseling, telephone counseling, in person counseling.
Open ended questions:
Are a good way to get your client involved in a conversation.
The process of problems solving:
Both a and B. Assumes there are obstacles preventing the client form moving on and addresses the importance of removing barriers to decision-making.
When it comes to saving money, even if your client is only able to save one dollar a day, they will have a sense of accomplishment as the money starts to accumulate. True or false
It is possible to have a working budget without including fixed monthly expenses. True or false
Net worth is:
The total of one's financial assets minus total financial liabilities.
It would be wise to suggest to clients who receive your tax refunds that the adjuster is holdings to incorporate that chunk of money back into their paychecks. True or false
Having a good credit rating is important:
All of the above. These include in getting a reasonable car insurance rate, when applying for a job, and when renting an apartment.
Someone who is a victim of identity theft should:
Close any accounts that have been tampered with.
Credit cards are considered a type of secured debt.True or false
The five C's of credit under determine whether or not to grant a loan to a consumer. True or false
The current ratio in debt ratio are:
Used to determine a healthy level of debt
Debt can never be powerful tool in managing one's finances. True or false
Chapter 7 bankruptcy stays on the consumers credit record for:
An offer in Compromise is when the consumer contacts the collection agency to offer a settlement on their outstanding debt. True or false
The only available option for managing excessive debt is bankruptcy. True or false
A hard inquiry on ones credit can affect one's credit score. True or false
Prioritizing debts is a good way to approach repaying ones debts.
Consumers only need to be concerned about rebuilding their credit if they have filed bankruptcy. True or false
Investing is as much about risk taking as it is about setting goals.
It makes sense to invest in a retirement savings plan because:
All of the above. These include money grows tax-free, you can put away pretax money, and most companies no longer offer pension plans.
If you have been successful managing your own money, it is OK to give investment advice to your clients even if you're not properly licensed to do so. True or false
Social security disability insurance:
Is a federally sponsored program
Renters insurance is a policy that covers:
The contents of an apartment that one has rented.
Both A and B These include, is a good idea if you have a spouse and is a good idea if you have dependents.
Private mortgage insurance and mortgage insurance or the same things. True or false
This CCDS code of ethics states that it is OK to give advice regarding law, insurance, and investments even if you are not properly licensed:
Continuing education requirements are mandatory to retain your CCDS. True or false
The purpose of credit repair organization act is to:
Protect consumers from deceptive advertising by credit repair organizations.
The equal credit opportunity act was established to:
Prohibit creditors from acts of discrimination in the credit granting process
Provisions of the fair and accurate credit transactions act are:
Consumers are entitled to one free credit report per 12 months from the three major credit reporting agency's.
Under the fair credit billing act:
Both B and C. These include, consumers are not liable for unauthorized charges and a consumer is not liable for Bill sent to the wrong address, as long as the consumers change of address was received by the billing company 20 days before the end of the billing cycle.
The fair credit reporting act was enacted to:
Both A and B. These include, ensure the accuracy, fairness and privacy of information held by the credit bureaus and ensure that consumers know what information is being distributed about them.
The fair debt collections practices act allows a collector to:
None of the above. The above include call a debtors home before 8 AM, call and get us home after 9 PM and to contact the debtor and his or her appointment even if the employer disapproves.
Under the servicemembers civil relief act, a 6% interest rates can be enacted if active-duty hinders a service members ability to meet his or her obligations. True or false.
The truth in lending act provides for:
All of the above. The above includes, a timely resolution of billing disputes, maximum interest rates to be stated regarding variable loan contracts secured by one's home (i.e. Adjustable rate mortgages), and once an adjustment rate mortgage has been obtained, the consumer must get a copy of the consumer handbook on adjustable rate mortgage is, or a suitable substitute.
The uniform debt management services act was introduced by:
The national conference of commissioners on uniform state laws
The telephone consumer protection act is the primary law in the US regulating:
Main provisions under the bankruptcy abusive prevention and consumer protection act (BAPCPA) are:
Both A and B. These include the means test which determines whether a consumer can file Chapter 7 or Chapter 13 bankruptcy and credit counseling and debtors education or mandated for those filing bankruptcy.
The national conference of commissioners on uniform state laws regulate the debt settlement industry. True or false
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