The Fair Debt Collection Practices Act
TITLE 15. Commerce and Trade
CHAPTER 41. Consumer Credit Protection
15 USCS prec § 1692
§ 1692. Congressional findings and declaration of purpose
(a) Abusive practices. There is abundant evidence of the use of abusive, deceptive,
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. ESxisting laws and procedures for redressing these
injuries are inadequate to protect consumers.
(c) Available non-abusive collection methods. Means other than misrepresentation
or other abusive debt collection practices are available for the effective
collection of debts.
(d) Interstate commerce. Abusive debt collection practices are carried on
to a substantial 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 commerce.
(e) Purposes. It is the purpose of this title [15 USCS § § 1692
et seq.] 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 consumers against debt collection abuses.
15 USCS § 1692a
§ 1692a. Definitions
As used in this title [15 USCS § § 1692 et seq.]--
(1) The term "Commission" means the Federal Trade Commission.
(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 obligated 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 collection 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. Notwithstanding 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 attempting
to collect such debts. For the purpose of section 808(6) [15 USCS § 1692f(6)],
such term also includes any person who uses any instrumentality of interstate
commerce or the mails in any business the principal purpose of which is the
enforcement of security interests. The term does not include--
(A) any officer 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 common ownership or affiliated by corporate control, if
the person acting as a debt collector does so only for persons to whom it
is so related or affiliated and if the principal business of such person is
not the collection of debts;
(C) any officer or employee of the United States or any State to the extent
that collecting or attempting to collect any debt is in the performance of
his official duties;
(D) any person while serving or attempting to serve legal process on any other
person in connection with the judicial enforcement of any debt;
(E) any nonprofit organization which, at the request of consumers, performs
bona fide consumer credit counseling and assists consumers in the liquidation
of their debts by receiving payments from such consumers and distributing
such amounts to creditors; 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 fide fiduciary obligation or a bona fide 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 transaction involving the creditor.
(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 possession of
the United States, the District of Columbia, the Commonwealth of Puerto Rico,
or any political subdivision of any of the foregoing.
15 USCS § 1692b
§ 1692b. Acquisition of location information
Any debt collector communicating with any person other than the consumer for
the purpose of acquiring location information about the consumer shall--
(1) identify himself, state that he is confirming or correcting 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 communication relates
to the collection of a debt; and
(6) after the debt collector knows the consumer is represented
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 USCS § 1692c
§ 1692c. 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 competent 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 circumstances to the contrary, a debt collector shall assume
that the convenient time for communicating with a consumer is after 8 o'clock
antimeridian 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 knowledge 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 collector 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 804 [15 USCS § 1692b], without the prior consent of the consumer
given directly to the debt collector, or the express permission of a court
of competent 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 attorney,
a consumer reporting agency if otherwise permitted by law, the creditor, the
attorney of the creditor, or the attorney of the debt collector.
(c) Ceasing communication. If a consumer notifies 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 creditor may invoke
specified 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 specified remedy. If such notice from the consumer is
made by mail, notification shall be complete upon receipt.
(d) "Consumer" defined. For the purpose of this
section, the term "consumer" includes the consumer's spouse, parent
(if the consumer is a minor), guardian, executor, or administrator.
15 USCS § 1692d
§ 1692d. Harassment or abuse
A debt collector may not engage in any conduct the natural 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 property 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 section 603(f) or 604(3) of this Act [15 USCS § § 1681a(f) or
1681b(3)].
(4) The advertisement for sale of any debt to coerce payment 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 804 [15 USCS § 1692b], the placement
of telephone calls without meaningful disclosure of the caller's identity.
15 USCS § 1692e
§ 1692e. False or misleading representations
A debt collector may not use any false, deceptive, or misleading representation
or means in connection with the collection 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 affiliated 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 individual 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.
(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 title [15 USCS § §
1692 et seq.].
(7) The false representation or implication that the consumer 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 document authorized, issued, or approved by
any court, official, or agency of the United States or any State, or which
creates a false impression as to its source, authorization, 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 communication 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 attempting
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.
(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 collector operates
or is employed by a consumer reporting agency as defined by section 603(f)
of this Act [15 USCS § 1681a(f)].
15 USCS § 1692f
§ 1692f. Unfair practices
A debt collector may not use unfair or unconscionable means to collect or
attempt to collect any debt. Without limiting 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 obligation) 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 five days unless such person is
notified in writing of the debt collector's intent to deposit such check or
instrument not more than ten nor less than three business days prior to such
deposit.
(3) The solicitation by a debt collector of any postdated check or other postdated
payment instrument for the purpose 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 communications by concealment
of the true purpose of the communication. Such charges include, but are not
limited to, collect telephone calls and telegram fees.
(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 property claimed as collateral
through an enforceable security interest;
(B) there is no present intention to take possession of the property; or
(C) the property is exempt by law from such dispossession or disablement.
(7) Communicating with a consumer regarding a debt by post card.
(8) Using any language or symbol, other than the debt collector'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 collection business.
15 USCS § 1692g
§ 1692g. Validation of debts
(a) Notice of debt; contents. Within five days after the initial communication
with a consumer 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 notifies the debt collector in writing
within the thirty-day period that the debt, or any portion thereof, is disputed,
the debt collector will obtain verification of the debt or a copy of a judgment
against the consumer and a copy of such verification 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 notifies the debt collector
in writing within the thirty-day period described in subsection (a) 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 verification of the debt or a copy of a judgment, or the name and
address of the original creditor, and a copy of such verification or judgment,
or name and address of the original creditor, is mailed to the consumer by
the debt collector.
(c) Admission of liability. 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.
15 USCS § 1692h
§ 1692h. 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.
15 USCS § 1692i
§ 1692i. 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 commencement of the action.
(b) Authorization of actions. Nothing in this title [15 USCS §§ 1692
et seq.] shall be construed to authorize the bringing of legal actions by
debt collectors.
15 USCS § 1692j
§ 1692j. 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 813 [15
USCS §
1692k] for failure to comply with a provision of this title [15 USCS § §
1692 et seq.].
15 USCS § 1692k
§ 1692k. 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 title [15 USCS § § 1692
et seq.] 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 minimum
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 finding by the court that an action under this section
was brought in bad faith and for the purpose of harassment, the court may
award to the defendant attorney'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 under subsection (a), the court shall consider, among other relevant
factors--
(1) in any individual action under subsection (a)(2)(A), the frequency and
persistence of noncompliance by the debt collector, the nature of such noncompliance,
and the extent to which such noncompliance was intentional; or
(2) in any class action under subsection (a)(2)(B), the frequency and persistence
of noncompliance by the debt collector, the nature of such noncompliance,
the resources of the debt collector, the number of persons adversely affected,
and the extent to which the debt collector's noncompliance was intentional.
(c) Intent. A debt collector may not be held liable in any action brought
under this title [15 USCS § § 1692 et seq.] if the debt collector
shows by a preponderance of evidence that the violation was not intentional
and resulted from a bona fide error notwithstanding the maintenance of procedures
reasonably adapted to avoid any such error.
(d) Jurisdiction. An action to enforce any liability created by this title
[15 USCS
§ § 1692 et seq.] 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 Commission. No provision of this section imposing
any liability shall apply to any act done or omitted in good faith in conformity
with any advisory opinion of the Commission, notwithstanding 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.
15 USCS § 1692l
§ 1692l. Administrative enforcement
(a) Federal Trade Commission. Compliance with this title [15 USCS § §
1692 et seq.] shall be enforced by the Commission, except to the extent that
enforcement of the requirements imposed under this title [15 USCS § § 1692
et seq.] is specifically committed to another agency under subsection (b).
For purpose of the exercise by the Commission of its functions and powers
under the Federal Trade Commission Act [15 USCS § § 41 et seq.],
a violation of this title [15 USCS § § 1692 et seq.] shall be
deemed an unfair or deceptive act or practice in violation of that Act
[15 USCS § § 41 et seq.]. All of the functions and powers of
the Commission under the Federal Trade Commission Act [15 USCS §
§ 41 et seq.] are available to the Commission to enforce compliance by
any person with this title [15 USCS § § 1692 et seq.], irrespective
of whether that person is engaged in commerce or meets any other jurisdictional
tests in the Federal Trade Commission Act [15 USCS § § 41 et seq.],
including the power to enforce the provisions of this title [15 USCS § § 1692
et seq.] 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. Compliance with any requirements imposed
under this title [15 USCS § § 1692 et seq.] shall be enforced under--
(1) section 8 of the Federal Deposit Insurance Act [12 USCS § 1818],
in the case of--
(A) national banks, and Federal branches and Federal agencies of foreign
banks, by the Office of the Comptroller of the Currency;
(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 operating
under section 25 or 25(a) [25A] of the Federal Reserve Act [12 USCS § § 601
et seq. or § § 611 et seq.], by the Board of Governors of the Federal
Reserve System; and
(C) banks insured by the Federal Deposit Insurance Corporation (other than
members of the Federal Reserve System) and insured State branches of foreign
banks, by the Board of Directors of the Federal Deposit Insurance Corporation;
(2) section 8 of the Federal Deposit Insurance Act [12 USCS § 1818],
by the Director of the Office of Thrift Supervision, in the case of a savings
association the deposits of which are insured by the Federal Deposit Insurance
Corporation;
(3) the Federal Credit Union Act [12 USCS § § 1751 et seq.], by
the Administrator of the National Credit Union Administration [National Credit
Union Administration Board] with respect to any Federal credit union;
(4) the Acts to regulate commerce [49 USCS § § 10101 et seq.], by
the Secretary of Transportation, with respect to all carriers subject to the
jurisdiction of the Surface Transportation Board;
(5) the Federal Aviation Act of 1958 [49 USCS § § 40101 et seq.],
by the Secretary of Transportation with respect to any air carrier or any
foreign air carrier subject to that Act [49 USCS § § 40101 et seq.];
and
(6) the Packers and Stockyards Act, 1921 [7 USCS § § 181 et seq.]
(except as provided in section 406 of that Act [7 USCS § § 226 and
227]), by the Secretary of Agriculture with respect to any activities subject
to that Act [7 USCS § § 181 et seq.].
The terms used in paragraph (1) that are not defined in this title [15 USCS §
§ 1692 et seq.] or otherwise defined in section 3(s) of the Federal Deposit
Insurance Act (12 U.S.C. 1813(s)) shall have the meaning given to them in section
1(b) of the International Banking Act of 1978 (12 U.S.C. 3101).
(c) Agency powers. For the purpose of the exercise by any agency referred
to in subsection (b) of its powers under any Act referred to in that subsection,
a violation of any requirement imposed under this title [15 USCS § § 1692
et seq.] shall be deemed to be a violation of a requirement imposed under
that Act. In addition to its powers under any provision of law specifically
referred to in subsection (b), each of the agencies referred to in that subsection
may exercise, for the purpose of enforcing compliance with any requirement
imposed under this title [15 USCS §
§ 1692 et seq.] any other authority conferred on it by law, except as
provided in subsection (d).
(d) Rules and regulations. Neither the Commission nor any other agency referred
to in subsection (b) may promulgate trade regulation rules or other regulations
with respect to the collection of debts by debt collectors as defined in this
title [15 USCS § § 1692 et seq.].
15 USCS § 1692m
§ 1692m. Reports to Congress by the Commission; views of other
Federal agencies
(a) Not later than one year after the effective date of this title and at
one-year intervals thereafter, the Commission shall make reports to the Congress
concerning the administration of its functions under this title [15 USCS § § 1692
et seq.], including such recommendations as the Commission deems necessary
or appropriate. In addition, each report of the Commission shall include its
assessment of the extent to which compliance with this title [15 USCS § § 1692
et seq.] is being achieved and a summary of the enforcement actions taken
by the Commission under section 814 of this title [15 USCS § 1692l]
(b) In the exercise of its functions under this title [15 USCS § § 1692
et seq.], the Commission may obtain upon request the views of any other Federal
agency which exercises enforcement functions under section 814 of this title
[15 USCS § 1692l].
15 USCS § 1692n
§ 1692n. Relation to State laws
This title [15 USCS § § 1692 et seq.] does not annul, alter, or
affect, or exempt any person subject to the provisions of this title [15 USCS § §
1692 et seq.] from complying with the laws of any State with respect to debt
collection practices, except to the extent that those laws are inconsistent
with any provision of this title [15 USCS § § 1692 et seq.], and
then only to the extent of the inconsistency. For purposes of this section,
a State law is not inconsistent with this title [15 USCS § § 1692
et seq.] if the protection such law affords any consumer is greater than the
protection provided by this title [15 USCS
§ § 1692 et seq.].
15 USCS § 1692o
§ 1692o. Exemption for State regulation
The Commission shall by regulation exempt from the requirements of this title
[15 USCS § § 1692 et seq.] any class of debt collection practices
within any State if the Commission 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 title [15 USCS § § 1692 et seq.],
and that there is adequate provision for enforcement.
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