The Fair Debt Collection Practices Act (FDCPA). It is your path to credit freedom and will protect you in times of trouble. It is the heart of getting rid of collections and collection agencies, enabling you to use real legal threats against those who are ruining your chances for a better life. This is the tool you use when applying our debt validation procedure.
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THE FAIR DEBT COLLECTION PRACTICES ACT
As amended by Public Law 104-208, 110 Stat. 3009
(Sept. 30, 1996)
To amend the Consumer Credit Protection Act to prohibit abusive
practices by debt collectors.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, That the Consumer
Credit Protection Act (15 U.S.C. 1601 et seq.) is amended by adding at the
end thereof the following new title:
TITLE VIII - DEBT COLLECTION PRACTICES [Fair Debt Collection
Practices Act]
Sec.
801. Short Title
802. Congressional findings and declaration of purpose
803. Definitions
804. Acquisition of location information
805. Communication in connection with debt collection
806. Harassment or abuse
807. False or misleading representations
808. Unfair practice
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 Commission
816. Relation to State laws
817. Exemption for State regulation
818. Effective date
§ 801. Short Title
[15 USC 1601 note]
This title may be cited as the "Fair Debt Collection Practices Act."
§ 802. Congressional findings
and declarations of purpose [15 USC 1692]
(a) 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) Existing laws and procedures for redressing these injuries are
inadequate to protect consumers.
(c) Means other than misrepresentation or other abusive debt collection
practices are available for the effective collection of debts.
(d) 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) It is the purpose of this title 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.
§ 803. Definitions [15
USC 1692a]
As used in this title --
(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), 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.
(b) 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 any 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) 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.
§ 810. Multiple debts
[15 USC 1692h]
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 [15 USC 1692i]
(a) 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) Nothing in this title shall be construed to authorize the bringing
of legal actions by debt collectors.
§ 812. Furnishing certain
deceptive forms [15 USC 1692j]
(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 for failure to comply with a provision of this title.
§ 813. Civil liability
[15 USC 1692k]
(a) Except as otherwise provided by this section, any debt collector
who fails to comply with any provision of this title 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) 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) A debt collector may not be held liable in any action brought under
this title 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) An action to enforce any liability created by this title 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) 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.
§ 814. Administrative
enforcement [15 USC 1692l]
(a) Compliance with this title shall be enforced by the Commission,
except to the extend that enforcement of the requirements imposed under
this title 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, a violation of this title
shall be deemed an unfair or deceptive act or practice in violation of
that Act. All of the functions and powers of the Commission under the
Federal Trade Commission Act are available to the Commission to enforce
compliance by any person with this title, irrespective of whether that
person is engaged in commerce or meets any other jurisdictional tests in
the Federal Trade Commission Act, including the power to enforce the
provisions of this title in the same manner as if the violation had been a
violation of a Federal Trade Commission trade regulation rule.
(b) Compliance with any requirements imposed under this title shall be
enforced under --
(1) section 8 of the Federal Deposit Insurance Act, in the case of --
(A) national banks, by the Comptroller of the Currency;
(B) member banks of the Federal Reserve System (other than national
banks), by the Federal Reserve Board; and
(C) banks the deposits or accounts of which are insured by the
Federal Deposit Insurance Corporation (other than members of the
Federal Reserve System), by the Board of Directors of the Federal
Deposit Insurance Corporation;
(2) section 5(d) of the Home Owners Loan Act of 1933, section 407 of
the National Housing Act, and sections 6(i) and 17 of the Federal Home
Loan Bank Act, by the Federal Home Loan Bank Board (acting directing or
through the Federal Savings and Loan Insurance Corporation), in the case
of any institution subject to any of those provisions;
(3) the Federal Credit Union Act, by the Administrator of the
National Credit Union Administration with respect to any Federal credit
union;
(4) subtitle IV of Title 49, by the Interstate Commerce Commission
with respect to any common carrier subject to such subtitle;
(5) the Federal Aviation Act of 1958, by the Secretary of
Transportation with respect to any air carrier or any foreign air
carrier subject to that Act; and
(6) the Packers and Stockyards Act, 1921 (except as provided in
section 406 of that Act), by the Secretary of Agriculture with respect
to any activities subject to that Act.
(c) 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 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 any other authority conferred on it by law, except as provided
in subsection (d).
(d) 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.
§ 815. Reports to Congress by
the Commission [15 USC 1692m]
(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,
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 is being
achieved and a summary of the enforcement actions taken by the Commission
under section 814 of this title.
(b) In the exercise of its functions under this title, the Commission
may obtain upon request the views of any other Federal agency which
exercises enforcement functions under section 814 of this title.
§ 816. Relation to State
laws [15 USC 1692n]
This title does not annul, alter, or affect, or exempt any person
subject to the provisions of this title 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, and
then only to the extent of the inconsistency. For purposes of this
section, a State law is not inconsistent with this title if the protection
such law affords any consumer is greater than the protection provided by
this title.
§ 817. Exemption for State
regulation [15 USC 1692o]
The Commission shall by regulation exempt from the requirements of this
title 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, and that there is adequate provision for
enforcement.
§ 818. Effective date
[15 USC 1692 note]
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 occurs after such effective
date.
Approved September 20, 1977
ENDNOTES
1. So in original; however, should read "604(a)(3)."
LEGISLATIVE HISTORY:
Public Law 95-109 [H.R. 5294]
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):
Apr. 4, considered and passed House.
Aug. 5, considered and passed Senate, amended.
Sept. 8, House agreed to Senate amendment.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 13, No. 39:
Sept. 20, Presidential statement.
AMENDMENTS:
SECTION 621, SUBSECTIONS (b)(3), (b)(4) and (b)(5) were amended to
transfer certain administrative enforcement responsibilities, pursuant to
Pub. L. 95-473, § 3(b), Oct. 17, 1978. 92 Stat. 166; Pub.
L. 95-630, Title V. § 501, November 10, 1978, 92 Stat.
3680; Pub. L. 98-443, § 9(h), Oct. 4, 1984, 98 Stat. 708.
SECTION 803, SUBSECTION (6), defining "debt collector," was amended to
repeal the attorney at law exemption at former Section (6)(F) and to
redesignate Section 803(6)(G) pursuant to Pub. L. 99-361, July 9, 1986,
100 Stat. 768. For legislative history, see H.R. 237, HOUSE
REPORT No. 99-405 (Comm. on Banking, Finance and Urban Affairs).
CONGRESSIONAL RECORD: Vol. 131 (1985): Dec. 2, considered and passed
House. Vol. 132 (1986): June 26, considered and passed Senate.
SECTION 807, SUBSECTION (11), was amended to affect when debt
collectors must state (a) that they are attempting to collect a debt and
(b) that information obtained will be used for that purpose, pursuant to
Pub. L. 104-208 § 2305, 110 Stat. 3009 (Sept. 30, 1996).
