Fair Debt Collection Practices Act

Fair Debt

Collection

Practices

Act

15 U.S.C. §§ 1692-1692p

Last amended July 2010

THE FAIR DEBT COLLECTION PRACTICES ACT

As amended by Pub. L. 111-203, title X, 124 Stat. 2092 (2010)

As a public service, the staff of the Federal Trade Commission (FTC)

has prepared the following complete text of the Fair Debt Collection

Practices Act (FDCPA), 15 U.S.C. §§ 1692-1692p.

Please note that the format of the text differs in minor ways from the

U.S. Code and West’s U.S. Code Annotated. For example, this version

uses FDCPA section numbers in the headings. In addition, the relevant

U.S. Code citation is included with each section heading. Although the

staff has made every effort to transcribe the statutory material accurately,

this compendium is intended as a convenience for the public and not a

substitute for the text in the U.S. Code.

Table of ConTenTs

§ 801 Short title

§ 802 Congressional ndings and declaration of purpose

§ 803 Denitions

§ 804 Acquisition of location information

§ 805 Communication in connection with debt collection

§ 806 Harassment or abuse

§ 807 False or misleading representations

§ 808 Unfair practices

§ 809 Validation of debts

§ 810 Multiple debts

§ 811 Legal actions by debt collectors

§ 812 Furnishing certain deceptive forms

§ 813 Civil liability

§ 814 Administrative enforcement

§ 815 Reports to Congress by the Bureau; views of other Federal

agencies

§ 816 Relation to State laws

§ 817 Exemption for State regulation

§ 818 Exception for certain bad check enforcement programs

operated by private entities

§ 819 Effective date

§ 801 15 USC 1601 note

§ 801. Short Title

This subchapter may be cited as the “Fair Debt Collection

Practices Act.”

§ 802. Congressional findings and declaration of purpose

(a) Abusive practices

There is abundant evidence of the use of abusive, decep-

tive, and unfair debt collection practices by many debt

collectors. Abusive debt collection practices contribute to

the number of personal bankruptcies, to marital instability,

to the loss of jobs, and to invasions of individual privacy.

(b) Inadequacy of laws

Existing laws and procedures for redressing these injuries

are inadequate to protect consumers.

Means other than misrepresentation or other abusive debt

collection practices are available for the effective collec-

tion of debts.

(d) Interstate commerce

Abusive debt collection practices are carried on to a sub-

stantial extent in interstate commerce and through means

and instrumentalities of such commerce. Even where

abusive debt collection practices are purely intrastate in

character, they nevertheless directly affect interstate com-

merce.

(e) Purposes

It is the purpose of this subchapter to eliminate abusive

debt collection practices by debt collectors, to insure that

those debt collectors who refrain from using abusive debt

collection practices are not competitively disadvantaged,

and to promote consistent State action to protect consum-

ers against debt collection abuses.

15 USC 1601 note

15 USC 1692

§ 803 15 USC 1692a

§ 803. Definitions

As used in this subchapter—

(1) The term “Bureau” means the Bureau of Consumer

Financial Protection.

(2) The term “communication” means the conveying of

information regarding a debt directly or indirectly to

any person through any medium.

(3) The term “consumer” means any natural person obli-

gated or allegedly obligated to pay any debt.

(4) The term “creditor” means any person who offers or

extends credit creating a debt or to whom a debt is

owed, but such term does not include any person to the

extent that he receives an assignment or transfer of a

debt in default solely for the purpose of facilitating col-

lection of such debt for another.

(5) The term “debt” means any obligation or alleged

obligation of a consumer to pay money arising out of

a transaction in which the money, property, insurance

or services which are the subject of the transaction are

primarily for personal, family, or household purposes,

whether or not such obligation has been reduced to

judgment.

(6) The term “debt collector” means any person who uses

any instrumentality of interstate commerce or the mails

in any business the principal purpose of which is the

collection of any debts, or who regularly collects or

attempts to collect, directly or indirectly, debts owed

or due or asserted to be owed or due another. Not-

withstanding the exclusion provided by clause (F) of

the last sentence of this paragraph, the term includes

any creditor who, in the process of collecting his own

debts, uses any name other than his own which would

indicate that a third person is collecting or attempt-

ing to collect such debts. For the purpose of section

1692f(6) of this title, such term also includes any

person who uses any instrumentality of interstate com-

merce or the mails in any business the principal pur-

15 USC 1692a

§ 803 15 USC 1692a

pose of which is the enforcement of security interests.

The term does not include—

(A) any ofcer or employee of a creditor while, in

the name of the creditor, collecting debts for such

creditor;

(B) any person while acting as a debt collector for

another person, both of whom are related by com-

mon ownership or afliated by corporate control,

if the person acting as a debt collector does so only

for persons to whom it is so related or afliated and

if the principal business of such person is not the

collection of debts;

State to the extent that collecting or attempting to col-

lect any debt is in the performance of his ofcial duties;

(D) any person while serving or attempting to serve le-

gal process on any other person in connection with

the judicial enforcement of any debt;

(E) any nonprot organization which, at the request

of consumers, performs bona de consumer credit

counseling and assists consumers in the liquida-

tion of their debts by receiving payments from such

consumers and distributing such amounts to credi-

tors; and

(F) any person collecting or attempting to collect any

debt owed or due or asserted to be owed or due

another to the extent such activity

(i) is incidental to a bona de duciary obligation

or a bona de escrow arrangement;

(ii) concerns a debt which was originated by such

person;

(iii) concerns a debt which was not in default at the

time it was obtained by such person; or

(iv) concerns a debt obtained by such person as a

secured party in a commercial credit transac-

tion involving the creditor.

§ 803 15 USC 1692a

(7) The term “location information” means a consumer’s

place of abode and his telephone number at such place,

or his place of employment.

(8) The term “State” means any State, territory, or posses-

sion of the United States, the District of Columbia, the

Commonwealth of Puerto Rico, or any political subdi-

vision of any of the foregoing.

§ 804. Acquisition of location information

Any debt collector communicating with any person other

than the consumer for the purpose of acquiring location infor-

mation about the consumer shall—

(1) identify himself, state that he is conrming or correct-

ing location information concerning the consumer, and,

only if expressly requested, identify his employer;

(2) not state that such consumer owes any debt;

(3) not communicate with any such person more than once

unless requested to do so by such person or unless

the debt collector reasonably believes that the earlier

response of such person is erroneous or incomplete and

that such person now has correct or complete location

information;

(4) not communicate by post card;

(5) not use any language or symbol on any envelope or

in the contents of any communication effected by the

mails or telegram that indicates that the debt collector

is in the debt collection business or that the communi-

cation relates to the collection of a debt; and

(6) after the debt collector knows the consumer is repre-

sented by an attorney with regard to the subject debt

and has knowledge of, or can readily ascertain, such

attorney’s name and address, not communicate with

any person other than that attorney, unless the attorney

fails to respond within a reasonable period of time to

communication from the debt collector.

15 USC 1692b

§ 805 15 USC 1692c

§ 805. Communication in connection with debt collection

(a) Communication with the consumer generally

Without the prior consent of the consumer given directly to

the debt collector or the express permission of a court of com-

petent jurisdiction, a debt collector may not communicate with

a consumer in connection with the collection of any debt—

(1) at any unusual time or place or a time or place known

or which should be known to be inconvenient to the

consumer. In the absence of knowledge of circumstanc-

es to the contrary, a debt collector shall assume that the

convenient time for communicating with a consumer

is after 8 o’clock antemeridian and before 9 o’clock

postmeridian, local time at the consumer’s location;

(2) if the debt collector knows the consumer is represented

by an attorney with respect to such debt and has knowl-

edge of, or can readily ascertain, such attorney’s name

and address, unless the attorney fails to respond within

a reasonable period of time to a communication from

the debt collector or unless the attorney consents to

direct communication with the consumer; or

(3) at the consumer’s place of employment if the debt col-

lector knows or has reason to know that the consumer’s

employer prohibits the consumer from receiving such

communication.

(b) Communication with third parties

Except as provided in section 1692b of this title, without

the prior consent of the consumer given directly to the debt

collector, or the express permission of a court of compe-

tent jurisdiction, or as reasonably necessary to effectuate

a postjudgment judicial remedy, a debt collector may not

communicate, in connection with the collection of any

debt, with any person other than the consumer, his attor-

ney, a consumer reporting agency if otherwise permitted

by law, the creditor, the attorney of the creditor, or the at-

torney of the debt collector.

15 USC 1692c

§ 805 15 USC 1692c

If a consumer noties a debt collector in writing that the

consumer refuses to pay a debt or that the consumer wishes

the debt collector to cease further communication with the

consumer, the debt collector shall not communicate further

with the consumer with respect to such debt, except—

(1) to advise the consumer that the debt collector’s further

efforts are being terminated;

(2) to notify the consumer that the debt collector or credi-

tor may invoke specied remedies which are ordinarily

invoked by such debt collector or creditor; or

(3) where applicable, to notify the consumer that the debt

collector or creditor intends to invoke a specied

remedy.

If such notice from the consumer is made by mail, notica-

tion shall be complete upon receipt.

(d) “Consumer” dened

For the purpose of this section, the term “consumer” in-

cludes the consumer’s spouse, parent (if the consumer is a

minor), guardian, executor, or administrator.

§ 806. Harassment or abuse

A debt collector may not engage in any conduct the natu-

ral consequence of which is to harass, oppress, or abuse any

person in connection with the collection of a debt. Without

limiting the general application of the foregoing, the following

conduct is a violation of this section:

(1) The use or threat of use of violence or other criminal

means to harm the physical person, reputation, or prop-

erty of any person.

(2) The use of obscene or profane language or language

the natural consequence of which is to abuse the hearer

or reader.

(3) The publication of a list of consumers who allegedly

refuse to pay debts, except to a consumer reporting

agency or to persons meeting the requirements of sec-

15 USC 1692d

§ 806 15 USC 1692d

tion 1681a(f) or 1681b(3)

of this title.

(4) The advertisement for sale of any debt to coerce pay-

ment of the debt.

(5) Causing a telephone to ring or engaging any person

in telephone conversation repeatedly or continuously

with intent to annoy, abuse, or harass any person at the

called number.

(6) Except as provided in section 1692b of this title, the

placement of telephone calls without meaningful dis-

closure of the caller’s identity.

§ 807. False or misleading representations

A debt collector may not use any false, deceptive, or mis-

leading representation or means in connection with the col-

lection of any debt. Without limiting the general application

of the foregoing, the following conduct is a violation of this

section:

(1) The false representation or implication that the debt

collector is vouched for, bonded by, or afliated with

the United States or any State, including the use of any

badge, uniform, or facsimile thereof.

(2) The false representation of—

(A) the character, amount, or legal status of any debt; or

(B) any services rendered or compensation which may

be lawfully received by any debt collector for the

collection of a debt.

(3) The false representation or implication that any indi-

vidual is an attorney or that any communication is from

an attorney.

(4) The representation or implication that nonpayment of

any debt will result in the arrest or imprisonment of

any person or the seizure, garnishment, attachment,

or sale of any property or wages of any person unless

such action is lawful and the debt collector or creditor

intends to take such action.

1. Section 604(3) has been renumbered as Section 604(a)(3).

15 USC 1692e

§ 807 15 USC 1692e

(5) The threat to take any action that cannot legally be

taken or that is not intended to be taken.

(6) The false representation or implication that a sale,

referral, or other transfer of any interest in a debt shall

cause the consumer to—

(A) lose any claim or defense to payment of the debt; or

(B) become subject to any practice prohibited by this

subchapter.

(7) The false representation or implication that the con-

sumer committed any crime or other conduct in order

to disgrace the consumer.

(8) Communicating or threatening to communicate to any

person credit information which is known or which

should be known to be false, including the failure to

communicate that a disputed debt is disputed.

(9) The use or distribution of any written communication

which simulates or is falsely represented to be a docu-

ment authorized, issued, or approved by any court,

ofcial, or agency of the United States or any State, or

which creates a false impression as to its source, autho-

rization, or approval.

(10) The use of any false representation or deceptive means

to collect or attempt to collect any debt or to obtain

information concerning a consumer.

(11) The failure to disclose in the initial written communi-

cation with the consumer and, in addition, if the initial

communication with the consumer is oral, in that initial

oral communication, that the debt collector is attempt-

ing to collect a debt and that any information obtained

will be used for that purpose, and the failure to disclose

in subsequent communications that the communication

is from a debt collector, except that this paragraph shall

not apply to a formal pleading made in connection with

a legal action.

(12) The false representation or implication that accounts

have been turned over to innocent purchasers for value.

§ 807 15 USC 1692e

(13) The false representation or implication that documents

are legal process.

(14) The use of any business, company, or organization

name other than the true name of the debt collector’s

business, company, or organization.

(15) The false representation or implication that documents

are not legal process forms or do not require action by

the consumer.

(16) The false representation or implication that a debt col-

lector operates or is employed by a consumer reporting

agency as dened by section 1681a(f) of this title.

§ 808. Unfair practices

A debt collector may not use unfair or unconscionable

means to collect or attempt to collect any debt. Without limit-

ing the general application of the foregoing, the following

conduct is a violation of this section:

(1) The collection of any amount (including any interest,

fee, charge, or expense incidental to the principal obli-

gation) unless such amount is expressly authorized by

the agreement creating the debt or permitted by law.

(2) The acceptance by a debt collector from any person of

a check or other payment instrument postdated by more

than ve days unless such person is notied in writing

of the debt collector’s intent to deposit such check or

instrument not more than ten nor less than three busi-

ness days prior to such deposit.

(3) The solicitation by a debt collector of any postdated

check or other postdated payment instrument for the pur-

pose of threatening or instituting criminal prosecution.

(4) Depositing or threatening to deposit any postdated

check or other postdated payment instrument prior to

the date on such check or instrument.

(5) Causing charges to be made to any person for com-

munications by concealment of the true propose of

the communication. Such charges include, but are not

limited to, collect telephone calls and telegram fees.

15 USC 1692f

§ 808 15 USC 1692f

(6) Taking or threatening to take any nonjudicial action to

effect dispossession or disablement of property if—

(A) there is no present right to possession of the prop-

erty claimed as collateral through an enforceable

security interest;

(B) there is no present intention to take possession of

the property; or

sion or disablement.

(7) Communicating with a consumer regarding a debt by

post card.

(8) Using any language or symbol, other than the debt col-

lector’s address, on any envelope when communicating

with a consumer by use of the mails or by telegram,

except that a debt collector may use his business name

if such name does not indicate that he is in the debt col-

lection business.

§ 809. Validation of debts

(a) Notice of debt; contents

Within ve days after the initial communication with a con-

sumer in connection with the collection of any debt, a debt

collector shall, unless the following information is contained

in the initial communication or the consumer has paid the

debt, send the consumer a written notice containing—

(1) the amount of the debt;

(2) the name of the creditor to whom the debt is owed;

(3) a statement that unless the consumer, within thirty days

after receipt of the notice, disputes the validity of the

debt, or any portion thereof, the debt will be assumed

to be valid by the debt collector;

(4) a statement that if the consumer noties the debt col-

lector in writing within the thirty-day period that the

debt, or any portion thereof, is disputed, the debt col-

lector will obtain verication of the debt or a copy of

a judgment against the consumer and a copy of such

15 USC 1692g

§ 809 15 USC 1692g

verication or judgment will be mailed to the consumer

by the debt collector; and

(5) a statement that, upon the consumer’s written request

within the thirty-day period, the debt collector will

provide the consumer with the name and address of the

original creditor, if different from the current creditor.

(b) Disputed debts

If the consumer noties the debt collector in writing within

the thirty-day period described in subsection (a) of this

section that the debt, or any portion thereof, is disputed,

or that the consumer requests the name and address of the

original creditor, the debt collector shall cease collection

of the debt, or any disputed portion thereof, until the debt

collector obtains verication of the debt or a copy of a

judgment, or the name and address of the original creditor,

and a copy of such verication or judgment, or name and

address of the original creditor, is mailed to the consumer

by the debt collector. Collection activities and communi-

cations that do not otherwise violate this subchapter may

continue during the 30-day period referred to in subsection

(a) unless the consumer has notied the debt collector in

writing that the debt, or any portion of the debt, is disputed

or that the consumer requests the name and address of the

original creditor. Any collection activities and communica-

tion during the 30-day period may not overshadow or be

inconsistent with the disclosure of the consumer’s right

to dispute the debt or request the name and address of the

original creditor.

The failure of a consumer to dispute the validity of a debt

under this section may not be construed by any court as an

admission of liability by the consumer.

(d) Legal pleadings

A communication in the form of a formal pleading in a

civil action shall not be treated as an initial communication

for purposes of subsection (a).

§ 809 15 USC 1692g

(e) Notice provisions

The sending or delivery of any form or notice which does

not relate to the collection of a debt and is expressly re-

quired by title 26, title V of Gramm-Leach-Bliley Act [15

U.S.C. 6801 et seq.], or any provision of Federal or State

law relating to notice of data security breach or privacy, or

any regulation prescribed under any such provision of law,

shall not be treated as an initial communication in connec-

tion with debt collection for purposes of this section.

§ 810. Multiple debts

If any consumer owes multiple debts and makes any single

payment to any debt collector with respect to such debts, such

debt collector may not apply such payment to any debt which

is disputed by the consumer and, where applicable, shall apply

such payment in accordance with the consumer’s directions.

§ 811. Legal actions by debt collectors

(a) Venue

Any debt collector who brings any legal action on a debt

against any consumer shall—

(1) in the case of an action to enforce an interest in real

property securing the consumer’s obligation, bring

such action only in a judicial district or similar legal

entity in which such real property is located; or

(2) in the case of an action not described in paragraph (1),

bring such action only in the judicial district or similar

legal entity—

(A) in which such consumer signed the contract sued

upon; or

(B) in which such consumer resides at the commence-

ment of the action.

(b) Authorization of actions

Nothing in this subchapter shall be construed to authorize

the bringing of legal actions by debt collectors.

15 USC 1692i

15 USC 1692h

§ 812 15 USC 1692j

§ 812. Furnishing certain deceptive forms

(a) It is unlawful to design, compile, and furnish any form

knowing that such form would be used to create the false

belief in a consumer that a person other than the creditor

of such consumer is participating in the collection of or

in an attempt to collect a debt such consumer allegedly

owes such creditor, when in fact such person is not so

participating.

(b) Any person who violates this section shall be liable to the

same extent and in the same manner as a debt collector is

liable under section 1692k of this title for failure to comply

with a provision of this subchapter.

§ 813. Civil liability

(a) Amount of damages

Except as otherwise provided by this section, any debt

collector who fails to comply with any provision of this

subchapter with respect to any person is liable to such

person in an amount equal to the sum of—

(1) any actual damage sustained by such person as a result

of such failure;

(2) (A) in the case of any action by an individual, such

additional damages as the court may allow, but not

exceeding $1,000; or

(B) in the case of a class action,

(i) such amount for each named plaintiff as could

be recovered under subparagraph (A), and

(ii) such amount as the court may allow for all

other class members, without regard to a mini-

mum individual recovery, not to exceed the

lesser of $500,000 or 1 per centum of the net

worth of the debt collector; and

(3) in the case of any successful action to enforce the

foregoing liability, the costs of the action, together with

a reasonable attorney’s fee as determined by the court.

On a nding by the court that an action under this sec-

15 USC 1692k

15 USC 1692j

§ 813 15 USC 1692k

tion was brought in bad faith and for the purpose of ha-

rassment, the court may award to the defendant attor-

ney’s fees reasonable in relation to the work expended

and costs.

(b) Factors considered by court

In determining the amount of liability in any action un-

der subsection (a) of this section, the court shall consider,

among other relevant factors—

(1) in any individual action under subsection (a)(2)(A) of

this section, the frequency and persistence of noncom-

pliance by the debt collector, the nature of such non-

compliance, and the extent to which such noncompli-

ance was intentional; or

(2) in any class action under subsection (a)(2)(B) of this

section, the frequency and persistence of noncompli-

ance by the debt collector, the nature of such noncom-

pliance, the resources of the debt collector, the number

of persons adversely affected, and the extent to which

the debt collector’s noncompliance was intentional.

A debt collector may not be held liable in any action

brought under this subchapter if the debt collector shows

by a preponderance of evidence that the violation was not

intentional and resulted from a bona de error notwith-

standing the maintenance of procedures reasonably adapt-

ed to avoid any such error.

(d) Jurisdiction

An action to enforce any liability created by this subchap-

ter may be brought in any appropriate United States district

court without regard to the amount in controversy, or in

any other court of competent jurisdiction, within one year

from the date on which the violation occurs.

(e) Advisory opinions of Bureau

No provision of this section imposing any liability shall

apply to any act done or omitted in good faith in confor-

mity with any advisory opinion of the Bureau, notwith-

§ 813 15 USC 1692k

standing that after such act or omission has occurred, such

opinion is amended, rescinded, or determined by judicial

or other authority to be invalid for any reason.

§ 814. Administrative enforcement

(a) Federal Trade Commission

The Federal Trade Commission shall be authorized to

enforce compliance with this subchapter, except to the

extent that enforcement of the requirements imposed under

this subchapter is specically committed to another Gov-

ernment agency under any of paragraphs (1) through (5)

of subsection (b), subject to subtitle B of the Consumer

Financial Protection Act of 2010 [12 U.S.C. 5511 et seq.].

For purpose of the exercise by the Federal Trade Commis-

sion of its functions and powers under the Federal Trade

Commission Act (15 U.S.C. 41 et seq.), a violation of this

subchapter shall be deemed an unfair or deceptive act or

practice in violation of that Act. All of the functions and

powers of the Federal Trade Commission under the Federal

Trade Commission Act are available to the Federal Trade

Commission to enforce compliance by any person with this

subchapter, irrespective of whether that person is engaged

in commerce or meets any other jurisdictional tests under

the Federal Trade Commission Act, including the power

to enforce the provisions of this subchapter, in the same

manner as if the violation had been a violation of a Federal

Trade Commission trade regulation rule.

(b) Applicable provisions of law

Subject to subtitle B of the Consumer Financial Protection

Act of 2010, compliance with any requirements imposed

under this subchapter shall be enforced under—

(1) section 8 of the Federal Deposit Insurance Act [12

U.S.C. 1818], by the appropriate Federal banking

agency, as dened in section 3(q) of the Federal De-

posit Insurance Act (12 U.S.C. 1813(q)), with respect

to—

15 USC 1692l

(A) national banks, Federal savings associations, and

Federal branches and Federal agencies of foreign

banks;

(B) member banks of the Federal Reserve System (other

than national banks), branches and agencies of

foreign banks (other than Federal branches, Federal

agencies, and insured State branches of foreign

banks), commercial lending companies owned or

controlled by foreign banks, and organizations oper-

ating under section 25 or 25A of the Federal Re-

serve Act [12 U.S.C. 601 et seq., 611 et seq.]; and

the Federal Deposit Insurance Corporation (other

than members of the Federal Reserve System), and

insured State branches of foreign banks;

(2) the Federal Credit Union Act [12 U.S.C. 1751 et seq.],

by the Administrator of the National Credit Union Ad-

ministration with respect to any Federal credit union;

(3) subtitle IV of title 49, by the Secretary of Transporta-

tion, with respect to all carriers subject to the jurisdic-

tion of the Surface Transportation Board;

(4) part A of subtitle VII of title 49, by the Secretary of

Transportation with respect to any air carrier or any

foreign air carrier subject to that part;

(5) the Packers and Stockyards Act, 1921 [7 U.S.C. 181 et

seq.] (except as provided in section 406 of that Act [7

U.S.C. 226, 227]), by the Secretary of Agriculture with

respect to any activities subject to that Act; and

(6) subtitle E of the Consumer Financial Protection Act

of 2010 [12 U.S.C. 5561 et seq.], by the Bureau, with

respect to any person subject to this subchapter.

The terms used in paragraph (1) that are not dened in this

subchapter or otherwise dened in section 3(s) of the Fed-

eral Deposit Insurance Act (12 U.S.C. 1813(s)) shall have

the meaning given to them in section 1(b) of the Interna-

tional Banking Act of 1978 (12 U.S.C. 3101).

§ 814 15 USC 1692l

For the purpose of the exercise by any agency referred to

in subsection (b) of this section of its powers under any

Act referred to in that subsection, a violation of any re-

quirement imposed under this subchapter shall be deemed

to be a violation of a requirement imposed under that Act.

In addition to its powers under any provision of law spe-

cically referred to in subsection (b) of this section, each

of the agencies referred to in that subsection may exercise,

for the purpose of enforcing compliance with any require-

ment imposed under this subchapter any other authority

conferred on it by law, except as provided in subsection (d)

of this section.

(d) Rules and regulations

Except as provided in section 1029(a) of the Consumer

Financial Protection Act of 2010 [12 U.S.C. 5519(a)], the

Bureau may prescribe rules with respect to the collection

of debts by debt collectors, as dened in this subchapter.

§ 815. Reports to Congress by the Bureau; views of other

Federal agencies

(a) Not later than one year after the effective date of this

subchapter and at one-year intervals thereafter, the Bureau

shall make reports to the Congress concerning the admin-

istration of its functions under this subchapter, including

such recommendations as the Bureau deems necessary or

appropriate. In addition, each report of the Bureau shall

include its assessment of the extent to which compliance

with this subchapter is being achieved and a summary of

the enforcement actions taken by the Bureau under section

1692l of this title.

(b) In the exercise of its functions under this subchapter, the

Bureau may obtain upon request the views of any other

Federal agency which exercises enforcement functions

under section 1692l of this title.

15 USC 1692m

§ 814 15 USC 1692l

§ 816 15 USC 1692n

§ 816. Relation to State laws

This subchapter does not annul, alter, or affect, or exempt

any person subject to the provisions of this subchapter from

complying with the laws of any State with respect to debt col-

lection practices, except to the extent that those laws are incon-

sistent with any provision of this subchapter, and then only to

the extent of the inconsistency. For purposes of this section, a

State law is not inconsistent with this subchapter if the protec-

tion such law affords any consumer is greater than the protec-

tion provided by this subchapter.

§ 817. Exemption for State regulation

The Bureau shall by regulation exempt from the require-

ments of this subchapter any class of debt collection practices

within any State if the Bureau determines that under the law

of that State that class of debt collection practices is subject

to requirements substantially similar to those imposed by this

subchapter, and that there is adequate provision for enforce-

ment.

§ 818. Exception for certain bad check enforcement programs

operated by private entities

(a) In general

(1) Treatment of certain private entities

Subject to paragraph (2), a private entity shall be ex-

cluded from the denition of a debt collector, pursuant

to the exception provided in section 1692a(6) of this

title, with respect to the operation by the entity of a

program described in paragraph (2)(A) under a contract

described in paragraph (2)(B).

(2) Conditions of applicability

Paragraph (1) shall apply if—

(A) a State or district attorney establishes, within the

jurisdiction of such State or district attorney and

with respect to alleged bad check violations that do

not involve a check described in subsection (b), a

pretrial diversion program for alleged bad check

15 USC 1692p

15 USC 1692o

15 USC 1692n

§ 818 15 USC 1692p

offenders who agree to participate voluntarily in

such program to avoid criminal prosecution;

(B) a private entity, that is subject to an administrative

support services contract with a State or district

attorney and operates under the direction, supervi-

sion, and control of such State or district attorney,

operates the pretrial diversion program described in

subparagraph (A); and

a State or district attorney under the contract, the

private entity referred to in subparagraph (B)—

(i) complies with the penal laws of the State;

(ii) conforms with the terms of the contract and

directives of the State or district attorney;

(iii) does not exercise independent prosecutorial

discretion;

(iv) contacts any alleged offender referred to in

subparagraph (A) for purposes of participating

in a program referred to in such paragraph—

(I) only as a result of any determination by

the State or district attorney that probable

cause of a bad check violation under State

penal law exists, and that contact with the

alleged offender for purposes of participa-

tion in the program is appropriate; and

(II) the alleged offender has failed to pay the

bad check after demand for payment, pur-

suant to State law, is made for payment of

the check amount;

(v) includes as part of an initial written commu-

nication with an alleged offender a clear and

conspicuous statement that—

(I) the alleged offender may dispute the valid-

ity of any alleged bad check violation;

(II) where the alleged offender knows, or has

reasonable cause to believe, that the al-

§ 818 15 USC 1692p

leged bad check violation is the result of

theft or forgery of the check, identity theft,

or other fraud that is not the result of the

conduct of the alleged offender, the alleged

offender may le a crime report with the

appropriate law enforcement agency; and

(III) if the alleged offender noties the private

entity or the district attorney in writing, not

later than 30 days after being contacted for

the rst time pursuant to clause (iv), that

there is a dispute pursuant to this subsec-

tion, before further restitution efforts are

pursued, the district attorney or an employee

of the district attorney authorized to make

such a determination makes a determination

that there is probable cause to believe that a

crime has been committed; and

(vi) charges only fees in connection with services

under the contract that have been authorized by

the contract with the State or district attorney.

(b) Certain checks excluded

A check is described in this subsection if the check in-

volves, or is subsequently found to involve—

(1) a postdated check presented in connection with a pay-

day loan, or other similar transaction, where the payee

of the check knew that the issuer had insufcient funds

at the time the check was made, drawn, or delivered;

(2) a stop payment order where the issuer acted in good

faith and with reasonable cause in stopping payment on

the check;

(3) a check dishonored because of an adjustment to the is-

suer’s account by the nancial institution holding such

account without providing notice to the person at the

time the check was made, drawn, or delivered;

(4) a check for partial payment of a debt where the payee

had previously accepted partial payment for such debt;

§ 818 15 USC 1692p

(5) a check issued by a person who was not competent, or

was not of legal age, to enter into a legal contractual

obligation at the time the check was made, drawn, or

delivered; or

(6) a check issued to pay an obligation arising from a

transaction that was illegal in the jurisdiction of the

State or district attorney at the time the check was

made, drawn, or delivered.

For purposes of this section, the following denitions shall

apply:

(1) State or district attorney

The term “State or district attorney” means the chief

elected or appointed prosecuting attorney in a district,

county (as dened in section 2 of title 1), municipality,

or comparable jurisdiction, including State attorneys

general who act as chief elected or appointed prosecut-

ing attorneys in a district, county (as so dened), mu-

nicipality or comparable jurisdiction, who may be re-

ferred to by a variety of titles such as district attorneys,

prosecuting attorneys, commonwealth’s attorneys,

solicitors, county attorneys, and state’s attorneys, and

who are responsible for the prosecution of State crimes

and violations of jurisdiction-specic local ordinances.

(2) Check

The term “check” has the same meaning as in section

5002(6) of title 12.

(3) Bad check violation

The term “bad check violation” means a violation of

the applicable State criminal law relating to the writing

of dishonored checks.

§ 819. Effective date

This title takes effect upon the expiration of six months

after the date of its enactment, but section 809 shall apply only

with respect to debts for which the initial attempt to collect oc-

curs after such effective date.

15 USC 1692 note

Printed May 2013

legislaTive HisTory

House Report: No. 95-131 (Comm. on Banking, Finance, and Urban Affairs)

Senate Report: No. 95-382 (Comm. on Banking, Housing and Urban Affairs)

Congressional Record, Vol. 123 (1977)

April 4, House considered and passed H.R. 5294.

Aug. 5, Senate considered and passed amended version of

H.R. 5294.

Sept. 8, House considered and passed Senate version.

Enactment: Public Law 95-109 (September 20, 1977)

Amendments: Public Law Nos.

99-361 (July 9, 1986)

101-73 (August 9, 1989)

102-242 (December 19, 1991)

102-550 (October 28, 1992)

104-88 (December 29, 1995)

104-208 (September 30, 1996)

109-351 (October 13, 2006)

111-203 (July 21, 2010)

Fair Debt

Collection

Practices

Act

15 U.S.C. §§ 1692-1692p

Last amended July 2010