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INDIANA COLLECTION AGENCY MANAGER
EXAM — PRACTICE 2026 COMPLETE (115)
CURRENT TESTING QUESTIONS AND
CORRECT ANSWERS WITH DETAILED
RATIONALES.
AGENCY
Prepare for the Indiana Collection Agency Manager Exam Practice with focused review materials covering debt collection principles, agency operations and management, consumer protection laws, the Fair Debt Collection Practices Act (FDCPA), licensing and regulatory requirements, financial recordkeeping, communication and negotiation techniques, ethics and professional responsibilities, compliance procedures, and Indiana laws governing collection agency operations. Suitable for collection professionals, agency managers, and candidates preparing for the Indiana Collection Agency Manager examination. MULTIPLE CHOICE. SECTION 1: INDIANA COLLECTION AGENCY ACT (IC 25- 11 - 1) (Questions 1-20)
1. Which Indiana statute defines a "collection agency" and establishes the primary regulatory framework for debt collectors operating in Indiana? A. Indiana Consumer Protection Act (IC 24- 5 - 0.5)
B. Indiana Collection Agency Act (IC 25- 11 - 1) C. Indiana Uniform Commercial Code (IC 26-1) D. Indiana Fair Debt Collection Act Correct answer: B. Indiana Collection Agency Act (IC 25- 11 - 1) Rationale: The Indiana Collection Agency Act, codified at IC 25- 11 - 1, specifically defines collection agencies and establishes the regulatory framework for their operation in Indiana. IC 24- 5 - 0. addresses general consumer protection, not collection agency regulation.
2. Which agency is responsible for licensing and regulating collection agencies and Registered Collection Practitioners (RCPs) in Indiana? A. Indiana Attorney General's Office B. Indiana Department of Financial Institutions C. Indiana Professional Licensing Agency (IPLA) / Collection Agency Board D. Indiana Secretary of State, Securities Division Correct answer: C. Indiana Professional Licensing Agency (IPLA) / Collection Agency Board Rationale: The Collection Agency Board operates under the IPLA and is responsible for licensing and regulating collection agencies and RCPs in Indiana. The Indiana Secretary of State administers securities regulation, not collection agency licensing.
Rationale: The Collection Agency Board may deny a license if the applicant has been convicted of a felony involving moral turpitude, has had a collection license revoked in another state, or made a material misstatement on the application. Credit score is not a disqualifying factor.
5. The Indiana Collection Agency Board may deny a Temporary RCP Permit if the applicant has: A. Perfect credit B. A prior license revocation in another state C. Less than one year of experience D. A high school diploma only Correct answer: B. A prior license revocation in another state Rationale: The Board may deny a Temporary RCP Permit if the applicant has had a collection license revoked in another state, been convicted of a felony involving moral turpitude, or made a material misstatement on the application. Good credit is not required for licensure. 6. Which of the following best describes the statutory authority responsible for licensing collection agencies in Indiana? A. Indiana Department of Insurance B. Indiana Secretary of State, Securities Division C. Indiana Department of Revenue
D. Indiana Attorney General's Criminal Division Correct answer: B. Indiana Secretary of State, Securities Division Rationale: Indiana law assigns regulatory oversight of collection agency licensing to the Secretary of State, which administers registration, compliance, and enforcement of collection agency statutes under Title 25, Article 11. The Secretary of State's Securities Division handles this responsibility.
7. A "Registered Collection Practitioner" (RCP) is defined as: A. An individual who collects debts on behalf of a licensed collection agency B. The owner of a collection agency C. An attorney who represents creditors D. A credit bureau employee Correct answer: A. An individual who collects debts on behalf of a licensed collection agency Rationale: An RCP is an individual who collects debts on behalf of a collection agency that is licensed to collect. RCPs must be registered with the state and work under the supervision of a licensed agency. 8. Which federal system must Indiana collection agencies register with to obtain their license?
10. The Indiana Collection Agency Act is codified in which section of the Indiana Code? A. IC 25- 11 - 1 B. IC 35- 45 - 1 C. IC 24- 5 - 0. D. IC 22- 4 - 1 Correct answer: A. IC 25- 11 - 1 Rationale: IC 25- 11 - 1 governs collection agencies and registered collection practitioners (RCPs) in Indiana. IC 35- 45 - 1 addresses criminal offenses, and IC 24- 5 - 0.5 addresses general consumer protection. 11. A temporary permittee (RCP) must work under the supervision of: A. A fully licensed RCP or agency owner B. An attorney C. A credit bureau manager D. A certified public accountant Correct answer: A. A fully licensed RCP or agency owner Rationale: Temporary permittees are required to work under supervision until they qualify for full licensure. Supervision ensures that individuals gaining experience are properly guided and that consumers are protected.
12. Which of the following disqualifies an applicant from holding a collection agency manager role in Indiana? A. Having a credit score below 700 B. Being under 21 years of age C. Being a former licensee with a revoked license not reinstated D. Working in another state's collection industry Correct answer: C. Being a former licensee with a revoked license not reinstated Rationale: Indiana law explicitly bars individuals whose prior licenses were revoked or suspended and not reinstated from qualifying for licensure roles. The other options are not disqualifying factors. 13. The Collection Agency Board's primary function is to: A. Prosecute debtors who fail to pay B. Protect consumers by regulating collection agency conduct C. Set interest rates on consumer debt D. Approve all collection agency fee schedules Correct answer: B. Protect consumers by regulating collection agency conduct Rationale: The Collection Agency Board protects consumers by regulating collection agencies and ensuring compliance with state
D. A $25,000 letter of credit Correct answer: B. A $5,000 surety bond per office Rationale: Indiana requires a $5,000 surety bond per branch location to protect consumers against potential misconduct by the agency. The bond serves as a financial guarantee for consumer protection.
16. Which of the following actions may result in license suspension or revocation? A. Filing renewal late by one day B. Violating Indiana collection statutes or providing false application information C. Hiring additional staff D. Expanding office hours Correct answer: B. Violating Indiana collection statutes or providing false application information Rationale: Violating Indiana collection statutes or providing false information on a license application are grounds for suspension or revocation. Minor administrative issues like late filing typically result in fees, not revocation. 17. The Indiana Collection Agency Board may deny a license for all of the following reasons EXCEPT: A. A felony conviction involving moral turpitude
B. A prior license revocation in another state C. A material misstatement on the application D. A lack of professional experience Correct answer: D. A lack of professional experience Rationale: While experience is important for effective practice, a lack of experience alone is not a statutory ground for license denial. The Board denies licenses based on felony convictions, prior revocations, and misstatements.
18. "Moral turpitude" in the context of collection agency licensing refers to: A. Any criminal conviction B. Conduct that is considered contrary to community standards of justice, honesty, or good morals C. A credit score below 600 D. Any civil judgment Correct answer: B. Conduct that is considered contrary to community standards of justice, honesty, or good morals Rationale: Moral turpitude refers to conduct that is contrary to community standards of justice, honesty, or good morals. Felony convictions involving moral turpitude are disqualifying for licensure.
Rationale: The Indiana Collection Agency Act (IC 25- 11 - 1) is primarily concerned with licensing, regulating, and overseeing collection agencies operating within Indiana. It establishes standards for ethical and lawful debt collection. SECTION 2: FAIR DEBT COLLECTION PRACTICES ACT (FDCPA) — (Questions 21-35)
21. The Fair Debt Collection Practices Act (FDCPA) applies primarily to which type of debts? A. Commercial debts only B. Consumer debts only C. Medical debts only D. All debts, including business and government debts Correct answer: B. Consumer debts only Rationale: The FDCPA is specifically designed to regulate the conduct of debt collectors regarding consumer debts, not commercial or business debts. Consumer debts include personal, family, and household obligations. 22. Under the FDCPA, which of the following is considered a "debt collector"? A. The original creditor collecting their own debt
B. A lawyer collecting debts as part of legal proceedings C. A third-party agency collecting debts for another company D. A consumer trying to pay their own debt Correct answer: C. A third-party agency collecting debts for another company Rationale: The FDCPA defines "debt collector" as any person or entity that collects debts on behalf of others, excluding the original creditor when collecting for their own account. Third-party agencies are the primary target of FDCPA regulation.
23. Under the FDCPA, what is the maximum number of times a debt collector may contact a consumer by telephone in a day? A. One time B. Two times C. Three times D. There is no specific per-day limit; harassment is prohibited Correct answer: D. There is no specific per-day limit; harassment is prohibited Rationale: While the FDCPA prohibits harassment, there is no specific statutory limit on the number of calls per day. However, repeated calls that are intended to annoy, abuse, or harass are prohibited. The frequency must be reasonable and not constitute harassment.
Rationale: The FDCPA provides consumers with a 30-day period from the receipt of the validation notice to dispute the debt in writing. During this period, the debt collector must cease collection activities until the debt is validated.
26. Under the FDCPA, which of the following is considered a false or misleading representation? A. Threatening legal action when none is intended B. Communicating accurate information about the debt C. Providing the consumer's name and address D. Requesting payment of the debt Correct answer: A. Threatening legal action when none is intended Rationale: The FDCPA prohibits false or misleading representations, including threatening legal action when none is intended. Debt collectors must be truthful about their intentions and the consequences of nonpayment. 27. Under the FDCPA, a debt collector may contact a third party (such as a neighbor or employer) for the purpose of: A. Discussing the debt in detail B. Obtaining location information only C. Requesting payment on the consumer's behalf
D. Threatening legal action Correct answer: B. Obtaining location information only Rationale: Under the FDCPA, a debt collector may contact third parties only to obtain location information about the consumer. The collector may not discuss the debt with third parties or disclose that the consumer owes a debt.
28. A consumer has requested validation of a debt. The debt collector must cease collection activities until: A. The consumer has paid the debt in full B. The debt is validated and provided to the consumer C. The debt is assigned to another collector D. The statute of limitations expires Correct answer: B. The debt is validated and provided to the consumer Rationale: When a consumer disputes a debt in writing within the 30 - day validation period, the debt collector must cease collection activities until the debt is validated and the validation information is provided to the consumer. 29. Which of the following is considered an unfair practice under the FDCPA? A. Attempting to collect a debt that is past the statute of limitations
31. An independent "mini-Miranda" warning under the FDCPA requires debt collectors to: A. Read the consumer their rights at every contact B. Disclose that they are a debt collector attempting to collect a debt C. Provide the consumer's credit score D. Offer a payment plan Correct answer: B. Disclose that they are a debt collector attempting to collect a debt Rationale: The mini-Miranda warning requires debt collectors to state that they are a debt collector attempting to collect a debt and that any information obtained will be used for that purpose. This disclosure is required during initial communications. 32. Under the FDCPA, which of the following is NOT a prohibited practice? A. Communicating with the consumer in writing regarding the debt B. Using false representation of the amount of the debt C. Using unfair means to collect a debt D. Communicating with the consumer at inconvenient times Correct answer: A. Communicating with the consumer in writing regarding the debt
Rationale: Written communication regarding the debt is a permissible practice under the FDCPA. False representations, unfair means, and inconvenient contacts are all prohibited.
33. The FDCPA provides for civil liability for violations of the Act. A successful plaintiff may recover: A. Only actual damages B. Actual damages, statutory damages up to $1,000, and attorney's fees C. Only punitive damages D. Only attorney's fees Correct answer: B. Actual damages, statutory damages up to $1,000, and attorney's fees Rationale: The FDCPA allows consumers to recover actual damages, statutory damages up to $1,000, and reasonable attorney's fees and costs for violations of the Act. This provides a strong incentive for compliance. 34. The statute of limitations for bringing a claim under the FDCPA is: A. 30 days B. 1 year C. 2 years
