Which of the following is an example of prohibited collection activity?

• A. Violence or criminal means to harm lessee, property, or reputation.
• B. Use of obscene or profane language.
• C. False or misleading statements.
• D. Asking about the debtor's favorite color during collection calls.

Answer: (C)

Deceptive or false statements are prohibited in debt collection because honesty and accuracy in communications about a debt are required. A collector must avoid misrepresenting the amount, the status of the debt, or the consequences the debtor will face. This kind of deception directly violates the rules designed to protect consumers from being misled, making it the clearest example of a prohibited collection activity.

The other actions listed are clearly inappropriate—threatening violence or using obscene language is not allowed, and a harmless question like asking about a favorite color isn’t a problem—but the key violation described here is making false or misleading statements, which is why that option is the best answer.