Which action by a debt collector is considered prohibited conduct?

Study for the CFPB Mortgage Compliance Test. Learn with detailed quizzes and flashcards. Understand the key concepts, regulations, and guidelines with comprehensive explanations. Get ready to ace your exam!

The action characterized as prohibited conduct is the one that involves repeatedly calling a consumer with the intention of annoyance. Under the Fair Debt Collection Practices Act (FDCPA), debt collectors are prohibited from engaging in conduct that harasses, oppresses, or abuses any person in connection with the collection of a debt. This includes making repeated phone calls with the intent to annoy or harass the consumer.

In this case, the behavior of repeatedly calling a consumer fits within the definitions of harassment outlined by the FDCPA. It creates an environment where the consumer feels pressured and disturbed, which goes against the standards of fair and respectful debt collection practices established by the CFPB.

Other options present actions that may not necessarily violate the FDCPA. For instance, contacting a consumer at 11 a.m. is typically within acceptable calling hours, mailing an envelope without indicating it relates to debt can fall within permissible marketing practices, and contacting a third party only once for location information is consistent with the FDCPA's regulations regarding communications. Therefore, it is the intent and frequency of calls to annoy that distinctly marks the behavior as prohibited.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy