          
 Public Law 95-109
 95th Congress

                                   An Act

       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
 the end thereof the following new title:

                    "TITLE VIII - DEBT COLLECTION PRACTICES

 "Sec.
 "801.   Short Title.
 "802.   Findings and purpose.
 "803.   Definitions.
 "804.   Acquisition of location information.
 "805.   Communication in connection with debt collection.
 "806.   Harassment of 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 Commission.
 "816.   Relation to State laws.
 "817.   Exemption for State regulation.
 "818.   Effective Date.


  801.  Short Title

        "This title may be cited as the "Fair Debt Collection Practices Act".

  802.  Findings and purpose

        "(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
 
   "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 (G) 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;

              "(F)  any attorney-at-law collecting a debt as an attorney on
        behalf of and in the name of a client; and
  
              "(G)  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.


  804.  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.


  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 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, 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 a consumer, his
   attorney, a consumer reporting agency if otherwise permitted by law, the
   creditor, the attorney of the creditor, or the attorney of the debtor
   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 specific remedy. If such
         notice from the consumer is made by mail, notification shall be
         complete upon receipt.

        "(d) 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.


  806.  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.

             "(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, the placement of
        telephone calls without meaningful disclosure of the caller's identity.


  807.  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.

             "(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)  Except as otherwise provided for communications to acquire
         location information under section 804, the failure to disclose
         clearly in all communications made to collect a debt or to obtain
         information about a consumer, that the debt collector is attempting to
         collect a debt and that any information obtained will be used for that
         purpose.

             "(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.


  808.  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 for 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 propose 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.


  809.  Validation of debts

        "(a) 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)  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

        "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)  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

        "(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

        "(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

        "(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)  the Acts to regulate commerce, by the Interstate Commerce
        Commission with respect to any common carrier subject to those Acts;

             "(5)  the Federal Aviation Act of 1958, by the Civil Aeronautics
        Board 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 the 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 power 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

        "(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 recommendation as the Commission deems necessary or
   appropriate.  In additional, 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

        "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

        "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 the 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   

        "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

 
                                  Public Law 99-361
                                   99th Congress

                                      An Act

        To amend the Fair Debt Collection Practices Act to provide that any
   attorney who collects debts on behalf of a client shall be subject to the
   provisions of such Act.

        Be it enacted by the Senate and House of Representatives of the United
   States of America in Congress assembled, That (a) the last sentence of
   section 803(6) of the Fair Debt Collection Practices Act (15 U.S.C. 1692a
   (6)) is amended --

             (1) by striking out clause (F) and redesignating clause (G) as
        clause (F); and

             (2) in clause (E), by inserting "and" at the end thereof.

                  (b)  The second sentence of section 803(6) of the Fair Debt
             Collection Practices Act (15 U.S.C. 1692a(6)) is amended by
             striking out "clause (G)" and inserting in lieu thereof" clause
             (F)".

        Approved July 9, 1986.

