(If you think your rights might be violated, you do not need to search through the Act. Contact an FDCPA attorney and they will carefully review the collection company's actions for any possible violation.)
TITLE 15--COMMERCE AND TRADE
CHAPTER 41--CONSUMER CREDIT PROTECTION
SUBCHAPTER V--DEBT COLLECTION PRACTICES
Sec. 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
Existing 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 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 consumers against debt collection abuses.
Sec. 1692a. Definitions
As used in this subchapter--
(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
1692f(6) of this title, 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.
Sec. 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.
Sec. 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 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 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 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 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.
Sec. 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 1681a(f) or 1681b(3) \1\ of this
title.
(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 1692b of this title, the
placement of telephone calls without meaningful disclosure of the
caller's identity.
Sec. 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
subchapter.
(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 1681a(f) of this title.
Sec. 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.
Sec. 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) 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 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. Collection activities
and communications that do not otherwise violate this subchapter may
continue during the 30-day period referred to in subsection (a) unless
the consumer has notified 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 communication 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.
(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.
(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).
(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 required 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 connection with debt
collection for purposes of this section.
Sec. 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.
Sec. 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 subchapter shall be construed to authorize the
bringing of legal actions by debt collectors.
Sec. 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 1692k of this title for failure to comply with a provision of
this subchapter.
Sec. 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 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 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) 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 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) of this
section, 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 subchapter 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 subchapter 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.
Sec. 1692l. Administrative enforcement
(a) Federal Trade Commission
Compliance with this subchapter shall be enforced by the Commission,
except to the extent that enforcement of the requirements imposed under
this subchapter is specifically committed to another agency under
subsection (b) of this section. For purpose of the exercise by the
Commission 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 Commission under the
Federal Trade Commission Act are available to the 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 in 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
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], 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) \1\ of the Federal Reserve Act [12
U.S.C. 601 et seq., 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 U.S.C.
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 U.S.C. 1751 et seq.], by
the Administrator of the National Credit Union Administration with
respect to any Federal credit union;
(4) subtitle IV of title 49, by the Secretary of Transportation,
with respect to all carriers subject to the jurisdiction of the
Surface Transportation Board;
(5) 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; and
(6) 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.
The terms used in paragraph (1) that are not defined in this subchapter
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 this section of its powers under any Act referred to
in that subsection, a violation of any requirement 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
specifically 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 requirement 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
Neither the Commission nor any other agency referred to in
subsection (b) of this section may promulgate trade regulation rules or
other regulations with respect to the collection of debts by debt
collectors as defined in this subchapter.
Sec. 1692m. Reports to Congress by the Commission; 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 Commission shall
make reports to the Congress concerning the administration of its
functions under this subchapter, 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 subchapter is being achieved and a summary of the
enforcement actions taken by the Commission under section 1692l of this
title.
(b) In the exercise of its functions under this subchapter, the
Commission may obtain upon request the views of any other Federal agency
which exercises enforcement functions under section 1692l of this title.
Sec. 1692n. 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 collection practices, except
to the extent that those laws are inconsistent 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 protection such law affords any consumer is greater
than the protection provided by this subchapter.
Sec. 1692o. Exemption for State regulation
The Commission shall by regulation exempt from the requirements of
this subchapter 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 subchapter, and that there is adequate
provision for enforcement.
Sec. 1692p. 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 excluded
from the definition 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).
[[Page 1218]]
(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 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, supervision, and control of such
State or district attorney, operates the pretrial diversion
program described in subparagraph (A); and
(C) in the course of performing duties delegated to it by 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
participation in the program is appropriate; and
(II) the alleged offender has failed to pay the bad
check after demand for payment, pursuant to State law,
is made for payment of the check amount;
(v) includes as part of an initial written communication
with an alleged offender a clear and conspicuous statement
that--
(I) the alleged offender may dispute the validity of
any alleged bad check violation;
(II) where the alleged offender knows, or has
reasonable cause to believe, that the alleged 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 file a crime report with the
appropriate law enforcement agency; and
(III) if the alleged offender notifies the private
entity or the district attorney in writing, not later
than 30 days after being contacted for the first time
pursuant to clause
(iv), that there is a dispute
pursuant to this subsection, 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 involves, or is
subsequently found to involve--
(1) a postdated check presented in connection with a payday
loan, or other similar transaction, where the payee of the check
knew that the issuer had insufficient 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 issuer's
account by the financial 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;
(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.
(c) Definitions
For purposes of this section, the following definitions 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 defined
in section 2 of title 1), municipality, or comparable jurisdiction,
including State attorneys general who act as chief elected or
appointed prosecuting attorneys in a district, county (as so
defined), municipality or comparable jurisdiction, who may be
referred 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-specific
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.
Have your rights been violated? If so, contact an FDCPA attorney to stop the unlawful collection activity and recover up to $1,000 under federal law. There are attorneys that will take your case without any out-of-pocket cost to you because the law allows attorney's fees to be recovered from the offending debt collection agency.
The following FDCPA attorneys provide representation on a contingency-fee basis (fees paid only from a recovery at no charge to you):
CENTENNIAL LAW OFFICES
Submit a DEBT COLLECTION VIOLATION REPORT to get immediate assistance from an FDCPA attorney. (You will pay nothing for this service).
In today’s economy, more and more hard workers are facing past due bills they just can’t afford to pay. If you are living under the stress of constantly trying to keep debt collectors at bay and managing your funds in the face of increasing bills, professional help is much more affordable than you might have thought. Often the small fees associated with debtor relief or management programs are vastly outweighed by the hundred or even thousands of dollars saved by negotiated reductions in your balances. Listed below are participating debt relief and management programs. These programs are recommended based on their fee structure. Beware of “debt consolidation” companies that charge you steep fees based on a percentage of debt reduction and demand such fees be paid prior to the actual creditor balances you owe.
The following participating firms and agencies offer debtor relief
and debt management programs:
CENTENNIAL LAW OFFICES
Our Debtor Relief program will stop all debt collection calls
and letters within days. We will review your debts for validity
and ensure creditor/collector compliance under federal law. We
will also negotiate to reduce balances and restructure payments
to put you back on the road to financial stability. Visit
Centennial Law Offices here.