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 THE FAIR DEBT COLLECTION PRACTICESACT
As amendedby Pub.L. 109-351,$$ 801-02,120 Stat.1966(2006)

As a public service,the staffof the FederalTrade Commission (FTC) has

preparedthe following completetext of the Fair Debt Collection PracticesAct
(FDCPA),1s U.S.C.$$ 1692-1692p.

Pleasenote that the format of the text differs in minor ways from the U.S.
Code and West's U.S. CodeAnnotated. For example,this version usesFDCPA
section numbers in the headings.In addition, the relevant U.S. Code citation is
included with each sectionheading.Although the staffhas made every effort
to transcribethe statutory material accurately,this compendium is intended as
a conveniencefor the public and not a substitutefor the text in the U.S. Code.

Tanln oF CoNTENTS

$ 801 Shorttitle
$ 802 Congressional findingsanddeclarationof purpose
$ 803 Definitions
$ 804 Acquisitionof locationinformation
$ 805 Communicationin connectionwith debtcollection
$ 806 Harassment or abuse
$ 807 Falseor misleadingrepresentations
$ 808 Unfair practices
$ 809 Validationof debts
$ 810 Multipledebts
$ 811 Legalactionsby debtcollectors
$ 812 Furnishingcertaindeceptiveforms
$ 813 Civil liability
$ 814 Administrativeenforcement
$ 815 Reportsto Congress by the Commission
$ 816 Relationto Statelaws
$ 817 Exemptionfor Stateregulation
$ 818 Exceptionfor certainbadcheckenforcement programsoperatedby
privateentities
$ 819 Effectivedate
15USC1601note
5 801.ShortTitle
This title may be cited as the "Fair Debt Collection Prac-
ticesAct."

t5usctssz 5 802. Gongressional findingsand declarationof purpose

(a) There is abundantevidenceofthe use of abusive,decep-
tive, and unfair debt collection practicesby many debt
collectors.Abusive debt collection practicescontribute to
the number of personal bankruptcies, to marital instability,
to the loss ofjobs, and to invasions of individual privacy.
ft) Existing laws and procedures for redressing these injuries
are inadequateto protect consumers.
(c) Means other than misrepresentation or other abusive debt
collection practicesare available for the effective collec-
tion of debts.
(d) Abusive debt collection practices are carried on to a sub-
stantial extent in interstate commerce and through means
and instrumentalitiesof such cofitmerce.Even where
abusivedebt collection practicesare purely intrastatein
character,they neverthelessdirectly affect interstate com-
merce.
(e) It is the purposeof this title to eliminate abusive debt col-
lection practicesby debt collectors, to insure that those
debt collectors who refrain from using abusive debt col-
lection practicesare not competitively disadvantaged,and
to promote consistentStateaction to protect consumers
againstdebt collection abuses.

15USC1692a
E803.Definitions
As usedin thistitle-
(1) The term "Commission" meansthe Federal Trade
Commission.
(2) The term "communication" meansthe conveying of
information regarding a debt directly or indirectly to
any personthrough any medium.
(3) The term "consumer" meansany natural person obli-
gated or allegedly obligated to pay any debt.

EBOl 15USC1601note
 (4) The term "creditor" meansany personwho offers or
extendscredit creating a debt or to whom a debt is
owed, but such term doesnot include any personto the
extent that he receivesan assignmentor transfer of a
debt in default solely for the purposeof facilitating col-
lection of such debt for another.
(5) The term "debt" meansany obligation or alleged
obligation of a consumerto pay money arising out of
a transactionin which the money, property, insurance
or serviceswhich are the subject of the transactionare
primarily for personal,family, or householdpurposes,
whether or not such oblisation has been reducedto
judgment.
(6) The term "debt collector" meansany person who uses
any instrumentality of interstate commerce or the mails
in any businessthe principal purposeof which is the
collection of any debts,or who regularly collects or
attemptsto collect, directly or indirectly debts owed
or due or assertedto be owed or due another.Not-
withstanding the exclusion provided by clause(F) of
the last sentenceof this paragraph,the term includes
any creditor who, in the processof collecting his own
debts,usesany name other than his own which would
indicate that a third personis collecting or attempt-
ing to collect such debts.For the purposeof section
808(6), such term also includes any personwho uses
any instrumentality of interstatecommerceor the mails
in any businessthe principal purposeof which is the
enforcementof securiWinterests.The term doesnot
include-
(A)any officer or employeeof a creditor while, in
the name of the creditor, collecting debts for such
creditor;
(B) any person while acting as a debt collector for
anotherperson,both of whom are related by com-
mon ownership or affiliated by corporatecontrol,
if the person acting as a debt collector does so only I

5 803 l5 USC1692a
 for personsto whom it is so related or affiliated and
if the principal businessof such person is not the
collection of debts;
(C) any officer or employee of the United Statesor any
State to the extent that collecting or attempting to
collect any debt is in the performanceof his official
duties;
(D)any personwhile serving or attempting to servele-
gal processon any other person in connectionwith
the judicial enforcementof any debt;
(E) any nonprofit organizationwhich, at the request
of consumers,performs bona fide consumercredit
counselingand assistsconsumersin the liquida-
tion of their debtsby receiving paymentsfrom such
consumersand distributins such amountsto credi-
tors; and
(F) any person collecting or attempting to collect arry
debt owed or due or assertedto be owed or due
another to the extent such activity
(i) is incidental to a bona flde flduciary obligation
or abona fide escrow artangement;
(ii) concems 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) concernsa debt obtainedby such person as a
securedparty in a commercial credit transac-
tion involving the creditor.
(7) The term "location information" meansa consumer's
place of abodeand his telephonenumber at such place,
or his place of employment.
(8) The term "State" meansany State,territory or posses-
sion of the United States,the District of Columbia, the
Commonwealth of Puerto Rico, or any political subdi-
vision of any of the foregoing.

E803 15USC1692a
5 804. Acquisitionof locationinformation 15uscr6s2b
Any debt collector communicating with any person other
than the consumerfor the purpose of acquiring location infor-
mation about the consumershall-
(1) identifu himself, statethat he is confirming or correct-
ing location information concerning the consumer, and,
only if expressly requested,identiS his employer;
(2) not state that such consumer owes any debt;
(3) not communicatewith any suchperson more than once
unlessrequestedto do so by such person or unless
the debt collector reasonabiybelievesthat the earlier
responseof such personis erroneousor incomplete and
that such person now has correct or complete location
information;
(4) not communicateby post card;
(5) not use any languageor symbol on any envelopeor
in the contentsof any communication effectedby the
mails or telegram that indicatesthat the debt collector
is in the debt collection businessor that the communi-
cation relates to the collection of a debt; and
(6) after the debt collector knows the consumeris repre-
sentedby ao attorney with regard to the subject debt
and has knowledge of, or can readily ascertain,such
attomey's name and address,not communicatewith
any person other than that attorney, unless the attorney
fails to respondwithin a reasonableperiod of time to
the communication from the debt collector.

g 805.Gommunication
in connection
withdehtcollection 15USC1092c

(a) COMMUNICATION WITHTHECONSUMER GENER-

ALLY. Without the prior consentof the consumergiven
directly to the debt collector or the expresspermission of
a court of competentjurisdiction, a debt collector may not
communicatewith a consumerin connectionwith the col-
lection of any debt-
(1) at any unusualtime or place or a time or place known \
or which should be known to be inconvenientto the

5 804 15USC1692b
 consumer.In the absenceof knowledge of circumstanc-
es to the contrary, a debt collector shall assumethat the
convenienttime for communicating with a consumer
is after 8 o'clock antimeridian and before 9 o'clock
postmeridian,local time at the consumer'slocation;
(2) if the debt collector knows the consumeris represented
by an attorney with respectto such debt and has knowl-
edge of, or can readily ascertain,such attomey's name
and address,unlessthe attorney fails to respondwithin
a reasonableperiod of time to a communication from
the debt collector or unlessthe attorney consentsto
direct communication with the consumer; or
(3) at the consumer'splace of employment if the debt col-
lector knows or has reasonto know that the consumer's
employer prohibits the consumerfrom receiving such
communication.
(b) COMMUNICATION WITH THIRD PARIIES. Except as
provided in section 804, without the prior consentof the
consumergiven directly to the debt collector, or the ex-
presspermission of a court of competentjurisdiction, or as
reasonablynecessaryto effectuatea postjudgmentjudicial
remedy,a debt collector may not communicate,in connec-
tion with the collection of any debt, with any person other
than a consumer,his attorney,a consumerreporting agency
if otherwisepermitted by law, the creditor, the attorney of
the creditoq or the attorney of the debt collector.
(c) CEASING COMMUNICAflON. If a consumernotifres a
debt collector in writing that the consumerrefusesto pay a
debt or that the consumerwishes the debt collector to cease
further communication with the consumer,the debt collec-
tor shall not communicate further with the consumer with
respect to such debt, except-
(l) to advise the consumerthat the debt collector's further
efflorts are being terrninated;
(2) to notiff the consumerthat the debt collector or credi-
tor may invoke specifiedremedieswhich are ordinarily
invoked by such debt collector or creditor; or

5 805 15USC1692c
 (3) where applicable,to notify the consumerthatthe debt
collector or creditor intends to invoke a specifledrem-
edy.
If such notice from the consumer is made by mail, notifica-
tion shall be complete upon receipt.
(d) For the purposeof this section,the term o'consumer"in-
cludes the consumer'sspouse,parent (if the consumeris a
minor), guardian,executor,or administrator.

g 806. Harassmentor abuse 15usc16e2d

A debt collector may not engagein any conduct the natu-
ral consequenceofwhich is to harass,oppress,or abuseany
person in connectionwith the collection of a debt. Without
limiting the generalapplication of the foregoing, the following
conduct is a violation of this section:
(1) The use or threat of use of violence or other criminal
meansto harm the physical person,reputation, or prop-
erty ofany person.
(2) The use of obsceneor profane languageor language
the natural consequenceof which is to abusethe hearer
or reader.
(3) The publication of a list of consumerswho allegedly
refuse to pay debts,exceptto a consumerreporting
agencyor to personsmeeting the requirementsof sec-
tion 603(f) or 604(3)' of this Act.
(4) The advertisement for sale of any debt to coerce pay-
ment ofthe debt.
(5) Causing a telephoneto ring or engagingany person
in telephoneconversationrepeatedlyor continuously
with intent to annoy, abuse,or harassany person at the
called number.
(6) Except as provided in section 804, the placementof
telephonecalls without meaningful disclosureof the
caller's identity.

l Section 604(3) has been renumberedas Section 60a(a)(3).

E805 15USC1692c
l5 USG1692e S807.False
or misleading
representations
A debt collector may not use any false, deceptive,or mis-
leading representationor meansin connectionwith the col-
lection of any debt. Without limiting the generalapplication
of the foregoing, the following conduct is a violation of this
section:
(1) The false representationor implication that the debt
collector is vouched foq bonded by, or affrliated with
the United Statesor any State, including the use of any
badge,uniform, or ftcsimile thereof.
Q) The false representation of-
(A)the character, amount, or legal status of any debt; or
(B) any services rendered or compensation which may
be lawfrrlly received by any debt collector for the
collection of a debt.
(3) The false representationor implication that any indi-
vidual is an attornev or that anv communication is from
an attorney.
(4) The representationor implication that nonpaymentof
any debt will result in the arrestor 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
causethe consumer to-
(A) lose any claim or defenseto payment of the debt;
or
@) becomesubjectto any practice prohibited by this
title.
(7) The false representationor implication that the con-
sumer committed any crime or other conduct in order
to disgracethe consumer.

$ 807 15USC1692e
 (8) Communicating or threateningto communicateto 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 simulatesor is falsely representedto be a docu-
ment authorized,issued,or approvedby any court,
official, or agencyof the United Statesor any State,or
which createsa false impression as to its source,autho-
ization, or approval.
(10) The use of any false representationor deceptivemeans
to collect or attemptto collect any debt or to obtain
information concerninga consumer.
(11) The failure to disclose in the initial written communi-
cation with the consumerand, in addition, if the initial
communication with the consumeris oral, in that initial
oral communication,that the debt collector is attempt-
ing to collect a debt and that any information obtained
will be used for that purpose,and the failure to disclose
in subsequentcommunicationsthat the communication
is from a debt collector, exceptthat this paragraphshall
not apply to a formal pleading made in connectionwith
a legal action.
(12) The false representationor implication that accounts
have been turned over to innocent purchasersfor value.
(13) The false representationor 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,compimy?or organization.
(15) The false representationor implication that documents
are not legal process forms or do not require action by
the consumer.
(16) The false representationor implication that a debt col-
lector operatesor is employed by a consumerreporting
agency as deflned by section 603(0 of this Act.

5 807 15USC1692e
r5usc16921 E808.Unfairpractices
A debt collector may not use unfair or unconscionable
meansto collect or attempt to collect any debt. Without limit-
ing the generalapplication of the foregoing, the following
conduct is a violation of this section:
(1) The collection of any amount (including any interest,
fee, charge,or expenseincidental to the principal obli-
gation) unless such amount is expresslyauthorizedby
the agreement creating the debt or permitted by law.
(2) The acceptanceby a debt collector from any person of
a check or other payment instrument postdatedby more
than five days unless such person is notifled in writing
of the debt collector's intent to deposit such check or
instrument not more than ten nor less than three busi-
nessdays prior to such deposit.
(3) The solicitation by a debt collector of any postdated
check or other postdatedpayment instrument for the
purposeof threateningor instituting criminal prosecu-
tion.
(4) Depositing or threatening to deposit any postdated
check or other postdated payment instrument prior to
the date on such check or instrument.
(5) Causingchargesto be madeto any person for com-
munications by concealmentof the true propose of
the communication. Such chargesinclude, but are not
limited to, collect telephonecalls and telegram fees.
(6) Taking or threatening to take any nonjudicial action to
effect dispossessionor disablement of property if--
(A)there is no presentright to possessionof the prop-
erty claimed as collateral through an enforceable
security interest;
(B)there is no presentintention to take possessionof
the property; or
(C)the property is exempt by law from such disposses-
sion or disablement.

5 808 15USC1692f
l0
 (7) Communicating with a consumerregarding a debt by
post card.
(8) Using any languageor symbol, other than the debt col-
lector's address,on any envelopewhen communicating
with a consumerby use of the mails or by telegram,
except that a debt collector may use his businessname
if such name doesnot indicate that he is in the debt col-
lection business.

g 809. Validationof debts 15usc16e2s

(a) Within five days after the initial communication with a
consumerin connectionwith the collection of any debt,
a debt collector shall, unlessthe following information is
containedin the initial communication or the consumerhas
paid the debt, sendthe consumera written notice contain-
ing-
(1) the amount of the debt;
(2) the name of the creditor to whom the debt is owed;
(3) a statementthat unlessthe consumer,within thirfy days
after receipt of the notice, disputesthe validity of the
debt, or any portion thereof, the debt willbe assumed
to be valid by the debt collector;
(4) a statementthat if the consumernotifles the debt col-
lector in writing within the thirty-day period that the
debt, or any portion thereof, is disputed,the debt col-
lector will obtain verification of the debt or a copy of
a judgment againstthe consumerand a copy of such
verification or judgment will be mailed to the consumer
by the debt collector; and
(5) a statementthat, upon the consumer'swritten request
within the thirty-day period, the debt collector will
provide the consumerwith the name and addressof the
original creditor, if different from the current creditor.
(b) If the consumernotif,es the debt collector in writing within
the thirty-day period describedin subsection(a) that the
debt, or any portion thereof, is disputed,or that the con-
sumer requeststhe name and addressof the original credi-
I 808 15USC
1692f
11
 tor, the debt collector shall ceasecollection of the debt,
or any disputedportion thereof, until the debt collector
obtainsverification of the debt or any copy of a judgment,
or the name and addressof the original creditor, and a copy
of such verification or judgment, or name and addressof
the original creditor, is mailed to the consumerby the debt
collector. Collection activities and communicationsthat
do not otherwiseviolate this title may continue during
the 30-day period referred to in subsection(a) unlessthe
consumerhas notified the debt collector in writing that the
debt, or any portion of the debt, is disputed or that the con-
sumer requeststhe name and addressof the original credi-
tor. Any collection activities and communication during the
30-day period may not overshadowor be inconsistentwith
the disclosureof the consumer'sright to dispute the debt or
request the name and addressof the original creditor.
(c) The failure of a consumerto disputethe validity of a debt
under this sectionmay not be construedby any court as an
admission of liability by the consumer.
(d) A communication in the form of a formal pleading in a
civil action shall not be treatedas an initial communication
for purposesof subsection(a).
(e) The sendingor delivery of any form or notice which
doesnot relate to the collection of a debt and is expressly
required by the Internal RevenueCode of 1986,title V of
Gramm-Leach-Bliley Act, or any provision of Federal or
Statelaw relating to notice of data security breach or priva-
cy, or any regulation prescribedunder any such provision
of law, shall not be treatedas an initial communication in
connectionwith debt collection for purposesof this sec-
tion.

r5usc16s2h g 810.Multiple
debts
If any consumerowes multiple debts and makes any single
payment to any debt collector with respectto such debts,such
debt collector may not apply such payment to any debt which
is disputed by the consumerand, where applicable, shall apply
such payment in accordancewith the consumer'sdirections.
E809 15USC16929
12
g 811.legalactions
bydebtcollectors t5usct0s2i
(a) Any debt collector who brings any legal action on a debt
against any consumer shall-
(1) in the caseof an action to enforce an interest in real
property securingthe consumer'sobligation, bring
such action only in a judicial district or similar legal
entity in which such real property is located; or
(2) in the caseof an action not descibed in paragraph(1),
bring such action only in the judicial district or similar
legalentity-
(A)in which such consumer signed the contract sued
upon; or
(B) in which such consumer resides at the commence-
ment of the action.
(b) Nothing in this title shall be construed to authorize the
bringing of legal actionsby debt collectors.

$ 812.Furnishing deceptive
certain forms 15USC1692i
(a) It is unlawfulto design,compile,andfurnishanyform
knowing that such form would be usedto createthe false
belief in a consumerthat aperson other than the creditor
of such consumeris participating in the collection of or in
an attempt to collect a debt such consumerallegedly owes
such creditor, when in fact such person is not so participat-
ing.
(b) Any person who violates this section shall be liable to the
sameextent and in the samemanner as a debt collector is
liable under section 813 for failure to comply with a provi-
sion of this title.

5 813.Givilliability l5 u s c r6 e 2 k
(a) Except as otherwise provided by this section,any debt col-
lector who fails to comply with any provision of this title
with respectto any person is liable to such personin an
amount equal to the sum of--

$ 811 15USC1692i
13
 (1) any actual danage sustainedby such person as a result
of such failure;
(2) (A) in the caseof any action by atr individual, such
additional damagesas the court may allow, but not
exceeding$1,000;or
(B) in the caseof a class action,
(i) such amount for each named plaintiffas could
be recovered under subparagraph(A), and
(ii) such amount as the court may allow for all
other classmembers,without regardto a mini-
mum individual recovery not to exceedthe
lesserof $500,000or I per centum of the net
worth of the debt collector; and
(3) in the caseof any successfulaction to enforce the
foregoing liability, the costsof the action, together with
a reasonableattorney's fee as determinedby the court.
On a finding by the court that an action under this
sectionwas brought in bad faith and for the purpose
of harassment,the court may award to the defendant
attorney's fees reasonablein relation to the work ex-
pendedand costs.
(b) In determining the amount of liability in any action un-
der subsection (a), the court shall consider, among other
relevant factors-
(1) in any individual action under subsection(a)(2)(A),
the frequency and persistenceof noncomplianceby the
debt collector, the nature of such noncompliance,and
the extent to which such noncompliancewas intention-
al; or
(2) in any class action under subsection(a)(2)(B), the
frequency and persistenceof noncomplianceby the
debt collector, the nature of such noncompliance,the
resourcesof the debt collector, the number of persons
adversely afflected,and the extent to which the debt
collector's noncompliancewas intentional.

I 813 15USC1692k
14
(c) A debt collector may not be held liable in any action
brought under this title if the debt collector shows by a
preponderanceof evidencethat the violation was not inten-
tional and resulted from a bona fide error notwithstanding
the maintenanceof proceduresreasonablyadaptedto avoid
any such error.
(d) An action to enforce any liability createdby this title may
be brought in any appropriateUnited Statesdistrict court
without regard to the amount in controversy,or in any
other court of competentjurisdiction, within one year from
the date on which the violation oscurs.
(e) No provision of this section imposing any liability shall
apply to any act done or omitted in good faith in conformi-
ty with any advisory opinion of the Commission,notwith-
standing that af\er such act or omission has occurred,such
opinion is amended,rescinded,or determinedby judicial
or other authority to be invalid for any reason.

s 814. Administrativeenforcement 15usc16s2/

(a) Compliance with this title shall be enforcedby the Com-
mission, exceptto the extent that enforcementof the
requirementsimposed under this title is specifically com-
mitted to anotheragencyunder subsection(b). For purpose
of the exerciseby the Commission of its functions and
powers turderthe FederalTrade CommissionAct, a viola-
tion of this title shall be deemedan unfair or deceptiveact
or practice in violation of that Act. A11of the functions and
powers of the Commission under the FederalTrade Com-
mission Act are available to the Commission to enforce
complianceby any personwith this title, irrespectiveof
whether that person is engagedin commerceor meetsany
other jurisdictional testsin the FederalTrade Commission
Act, including the power to enforce the provisions of this
title in the same manner as if the violation had been a vio-
lation of a Federal Trade Commission trade regulation rule.
(b) Compliance with any requirements imposed under this title
shall be enforced under-

5 813 15USC1692k
't5
 (i) section 8 of the FederalDeposit InsuranceAct, in the
caseof--
(A)national banks, and Federalbranchesand Fed-
eral agenciesof foreign banks,by the Office of the
Comptroller of the Currency;
(B)member banks of the Federal ReserveSystem
(other than national banks), branchesand agen-
cies offoreign banks (other than Federalbranches,
Federal agencies,and insured Statebranchesof
foreign banks), commercial lending companies
owned or controlled by foreign banks, and organi-
zations operatingunder section 25 or 25(a) of the
FederalReserveAct, by the Board of Governors of
the FederalReserveSystem;and
(C) banks insured by the Federal Deposit Insurance
Corporation (other than membersof the Federal
ReserveSystem)and insured Statebranchesof
foreign banks, by the Board of Directors of the
FederalDeposit InsuranceCorporation;
(2) section 8 of the FederalDeposit InsuranceAct, by the
Director of the Offrce of Thrift Supervision,in the
caseof a savingsassociationthe depositsof which are
insured by the Federal Deposit Insurance Corporation;
(3) the Federal Credit Union Act, by the Administrator of
the National Credit UnionAdministration with respect
to any Federalcredit union;
(4) the Acts to regulate cofilmerce,by the Secretaryof
Transportation,with respectto all carriers subjectto
the jurisdiction of the SurfaceTransportationBoard;
(5) the FederalAviation Act of 1958,by the Secretaryof
Transportationwith respectto any air carrier or any
foreign air carrier subjectto that Act; and
(6) the Packersand StockyardsAct, I92I (except as pro-
vided in section406 of that Act), by the Secretaryof
Agriculture with respectto any activities subject to that
Act.

s 814 15USC169Z

16
 The terms used in paragraph(1) that are not defined in
this title or otherwise defined in section 3(s) of the Federal
Deposit InsuranceAct (12 U.S.C. 1813(s))shall have the
meaning given to them in section 1(b) of the International
BankingActof 1978(12 U.S.C.3101).
(c)For the purposeofthe exerciseby any agencyreferred
to in subsection(b) of its powers under any Act referred
to in that subsection,a violation of any requirementim-
posedunder this title shall be deemedto be a violation of
a requirement imposedunder thatAct. In addition to its
powers under any provision of law specifically referred to
in subsection(b), each ofthe agenciesreferred to in that
subsectionmay exercise,for the purposeof enforcing com-
pliance with any requirementimposed under this title any
other authority conferred on it by law, except as provided
in subsection(d).
(d)Neither the Commission nor any other agencyreferred to.
in subsection(b) may promulgatetrade regulation rules or
other regulationswith respectto the collection of debts by
debt collectors as defined in this title.

5 815.Reports
to Gongress
hytheCommission 15USC1692m
(a) Not later than one year after the effective date of this title
and at one-yearintervals thereafter,the Commission shall
make reports to the Congressconcerningthe administra-
tion of its functions under this title, including such recom-
mendationsas the Commission deemsnecessaryor ap-
propriate. In addition, eachreport of the Commission shall
include its assessmentof the extent to which compliance
with this title is being achieved and,a summary of the en-
forcement actions taken bv the Commission under section
814 of this title.
(b) In the exerciseof its functions under this title, the Com-
mission may obtain upon requestthe views of any other
Federal agencywhich exercisesenforcementfunctions
under section814 of this title.

5 814 r5 usct692y
17
15IJSG
1692n S816.Relation
to Statelaws
This title doesnot annul, alter, or affect, or exempt any
person subjectto the provisions of this title from comply-
ing with the laws of any Statewith respectto debt collection
practices,exceptto the extent that those laws are inconsistent
with any provision of this title, and then only to the extent of
the inconsistency.For purposesof this section,a Statelaw is
not inconsistentwith this title if the protection such law af-
fords any consumeris greaterthan the protection provided by
this title.

1 5USClS92o forStateregulation
5 817.Exemption
The Commission shall by regulation exempt from the
requirementsof this title any classof debt collection practices
within any Stateif the Commission determinesthat under the
law of that Statethat class of debt collection practicesis sub-
ject to requirementssubstantially similar to those imposed by
this title, and that there is adequateprovision for enforcement.
15USC1892p g 818.Exception programs
for certainbadcheckenforcement
byprivateentities
operated
(a) In General.-
(1) TREATMENT OF CEKTAIN PRIVATE ENTITIES.-
Subjectto paragraph(2), a private entity shall be
excluded from the definition of a debt collector, pursu-
ant to the exceptionprovided in section 803(6), with
respectto the operation by the entity of a program de-
scribed inparagraph (2XA) under a contract described
in paragraph(2XB).
Q) CONDITIONS OF APPLICABILITY.-Paragraph (1)
shall apply if--
(A)a Stateor district attorney establishes,within the
jurisdiction ofsuch Stateor district attorney and
with respectto alleged bad check violations that do
not involve a check describedin subsection(b), a
pretrial diversion program for alleged bad check
offenderswho agreeto participate voluntarily in
such program to avoid criminal prosecution;

E816 l5 USC1692n
t8
 (B) a private entity, that is subjectto an administrative
support servicescontract with a Stateor district
attomey and operatesunder the direction, supervi-
sion, and control of such Stateor district attorney,
operatesthe pretrial diversion program describedin
subparagraph(A); and
(C) in the courseof performing duties delegatedto it by
a Stateor district attorney under the contract,the
private entrty referred to in subparagraph(B)-
(i) complies with the penal laws of the State;
(ii) conforms with the terms ofthe contract and
directives of the State or district attorney;
(iii) does not exerciseindependentprosecutorial
discretion;
(iv) contacts any alleged offender referred to in
subparagraph(A) for purposes of participating
in a program referred to in such paragraph-
0) only as a result of any determination by
the State or district attorney that probable
causeofa bad check violation under State
penal law exists, and that contact with the
alleged offender for purposesof participa-
tion in the program is appropriate; and
(II) the alleged offender has failed to pay the
bad check after demand for payment, pur-
suantto Statelaw; is made for payment of
the check amount;
(v) includes as part of an initial written commu-
nication with an alleged offender a clear and
conspicuousstatementthat-
(D the alleged offender may dispute the valid-
ity of any alleged bad check violation;
(II) where the alleged offender knows, or has
reasonablecauseto believe, that the al-
leged bad check violation is the result of
theft or forgery of the check, identity theft,

5 818 15USC1692p
19
 or other fraud that is not the result of the
conduct of the alleged offender, the alleged
offender may flle a crime report with the
appropriate law enforcement agency; and
(III)if the alleged offender notifles the private
entrty or the district attomey in writing, not
later than 30 days after being contactedfor
the first time pursuantto clause (iv), that
there is a dispute pursuantto this subsec-
tion, before further restitution efforts are
pursued,the district attorney or an em-
ployee of the district attorney authorized
to make such a determinationmakes a
determinationthat there is probable cause
to believe that a crime has been committed;
and
(vi) chargesonly fees in connectionwith services
under the contractthat have been authorizedby
the contract with the State or district attorney.
(b) Certain ChecksExcluded.-A check is describedin this
subsectionif the check involves, or is subsequentlyfound
to involve-
(1) a postdatedcheck presentedin connectionwith apay-
day loan, or other similar transaction,where the payee
of the check knew that the issuerhad 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 reasonablecausein stopping payment on
the check;
(3) a check dishonoredbecauseof an adjustmentto the is-
suer's accountby the financial institution holding such
accountwithout 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 acceptedpartiat payment for such debt;

s 818 15USC1692p
20
 (5) a check issuedby a person who was not competent,or
was not of legal age,to enter into alegal contractual
obligation at the time the check was made, drawn, or
delivered; or
(6) a check issuedto pay an obligation arising from a
transactionthat was illegal in the jurisdiction of the
State or district attorney at the time the check was
made, drawn, or delivered.
(c) Deflnitions.-For purposesof this section,the following
definitions shall apply:
(1) STA|E OR DISTRICT ATTORNEY.-The term "State
or district attorney" meansthe chief electedor ap-
pointed prosecutingattorney in a district, county (as
defined in section 2 of title 1, United StatesCode), mu-
nicipality, or comparablejurisdiction, including State
attorneysgeneralwho act as chief electedor appointed
prosecutingattorneysin a district, county (as so de-
fined), municipality or comparablejurisdiction, who
may be referred to by a variety of titles such as district
attorneys,prosecutingattorneys,commonwealth's
attorneys,solicitors, county attomeys,and state'sat-
torneys, and who are responsiblefor the prosecutionof
Statecrimes and violations of jurisdiction-specific local
ordinances.
(2) CHECK.-The term'ocheck" has the samemeaning
as in section3(6) of the Check Clearingfor the 21st
Century Act.
(3) BAD CHECK VIOLATION.-The term "bad check
violation" meansa violation of the applicable State
criminal law relatins to the writins of dishonored
checks.
I5 USG1092note
5 819.Effective
date
This title takes effect upon the expiration of six months
after the date of its enactment,but section 809 shall apply only
with respectto debtsfor which the initial attemptto collect oc-
curs after such effective date.

5 818 15USC1692p
21
 Lncrsr,lrrvn Hrsronv

HouseReport:No. 95-131(Comm.on Banking,Finance,andUrbanAffairs)

Report:No. 95-382(Comm.on Banking,HousingandUrbanAffairs)

Senate

Record,Vol. 123(1977)
Congressional

andpassedH.R. 5294.
April4, Houseconsidered

Aug. 5, Senateconsideredandpassedamendedversionof
H .R .5 2 9 4.

Sept.8, HouseconsideredandpassedSenateversion.

Enactment: PublicLaw 95-109(Sept.20,1977)

Amendments:PublicLawNos.

9, 1986)
99-361(July

101-73(Aug.9, 1989)

(Dec.19,1991)
102-242

102-550(Oct.28, 1992)

104-88(Dec.29,1995)

104-208(Sept.30, 1996)

(Oct.13,2006)
109-351

22
 January
Bevised 2009

ZJ