FDCPA Compliant

This is a communication from a debt collector in an attempt to collect a debt. Any information obtained at this time will be soley used for that purpose

As a public service, the staff of the Federal Trade Commission (FTC)  has prepared the following complete text of the Fair Debt Collection  Practices Act

§§ 1692-1692p.

Please note that the format of the text differs in minor ways from  the U.S. Code and West’s U.S. Code Annotated. For example, this version  uses FDCPA section numbers in the headings. In addition, the relevant  U.S. Code citation is included with each section heading. Although the  staff has made every effort to transcribe the statutory material  accurately, this compendium is intended as a convenience for the public  and not a substitute for the text in the U.S. Code.

Table of Contents
§801.  Short title
§802.  Congressional findings and declaration of purpose
§803.  Definitions
§804.  Acquisition of location information
§805.  Communication in connection with debt collection
§806.  Harassment or abuse
§807.  False or misleading representations
§808.  Unfair 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 Bureau; views of other Federal agencies
§816.  Relation to State laws
§817.  Exemption for State regulation
§818. Exception for certain bad check enforcement programs operated by private entities
§819. Effective date

15 USC 1601 note

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

15 USC 1692

(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.

15 USC 1692a

As used in this subchapter --

(1) The term "Bureau" means the Bureau of Consumer Financial Protection.

(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.

15 USC 1692b

Any debt collector communicating with any person other than the  consumer for the purpose of acquiring location information about the  consumer shall --

(1) identify himself, state that he is confirming or correcting  location information concerning the consumer, and, only if expressly  requested, identify his employer;

(2) not state that such consumer owes any debt;

(3) not communicate with any such person more than once unless  requested to do so by such person or unless the debt collector  reasonably believes that the earlier response of such person is  erroneous or incomplete and that such person now has correct or complete  location information;

(4) not communicate by post card;

(5) not use any language or symbol on any envelope or in the contents  of any communication effected by the mails or telegram that indicates  that the debt collector is in the debt collection business or that the  communication relates to the collection of a debt; and

(6) after the debt collector knows the consumer is represented by an  attorney with regard to the subject debt and has knowledge of, or can  readily ascertain, such attorney's name and address, not communicate  with any person other than that attorney, unless the attorney fails to  respond within a reasonable period of time to communication from the  debt collector.

15 USC 1692c

(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.

15 USC 1692d

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.

15 USC 1692e

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.

15 USC 1692f

A debt collector may not use unfair or unconscionable means to  collect or attempt to collect any debt. Without limiting the general  application of the foregoing, the following conduct is a violation of  this section:

(1) The collection of any amount (including any interest, fee,  charge, or expense incidental to the principal obligation) unless such  amount is expressly authorized by the agreement creating the debt or  permitted by law.

(2) The acceptance by a debt collector from any person of a check or  other payment instrument postdated by more than five days unless such  person is notified in writing of the debt collector's intent to deposit  such check or instrument not more than ten nor less than three business  days prior to such deposit.

(3) The solicitation by a debt collector of any postdated check or  other postdated payment instrument for the purpose of threatening or  instituting criminal prosecution.

(4) Depositing or threatening to deposit any postdated check or other  postdated payment instrument prior to the date on such check or  instrument.

(5) Causing charges to be made to any person for communications by  concealment of the true purpose of the communication. Such charges  include, but are not limited to, collect telephone calls and telegram  fees.

(6) Taking or threatening to take any nonjudicial action to effect dispossession or disablement of property if --

(A) there is no present right to possession of the property claimed as collateral through an enforceable security interest;

(B) there is no present intention to take possession of the property; or

(C) the property is exempt by law from such dispossession or disablement.

(7) Communicating with a consumer regarding a debt by post card.

(8) Using any language or symbol, other than the debt collector's  address, on any envelope when communicating with a consumer by use of  the mails or by telegram, except that a debt collector may use his  business name if such name does not indicate that he is in the debt  collection business.

15 USC 1692g

(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.

15 USC 1692h

If any consumer owes multiple debts and makes any single payment to  any debt collector with respect to such debts, such debt collector may  not apply such payment to any debt which is disputed by the consumer  and, where applicable, shall apply such payment in accordance with the  consumer's directions.

15 USC 1692i

(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.

15 USC 1692j

(a) It is unlawful to design, compile, and furnish any form knowing  that such form would be used to create the false belief in a consumer  that a person other than the creditor of such consumer is participating  in the collection of or in an attempt to collect a debt such consumer  allegedly owes such creditor, when in fact such person is not so  participating.

(b) Any person who violates this section shall be liable to the same  extent and in the same manner as a debt collector is liable under  section 1692k of this title for failure to comply with a provision of  this subchapter.

15 USC 1692k

(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 Bureau
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 Bureau, notwithstanding that after such act or omission  has occurred, such opinion is amended, rescinded, or determined by  judicial or other authority to be invalid for any reason.

15 USC 1692l

(a) Federal Trade Commission
The Federal Trade Commission shall be authorized to enforce compliance  with this subchapter, except to the extent that enforcement of the  requirements imposed under this subchapter is specifically committed to  another Government agency under any of paragraphs (1) through (5) of  subsection (b), subject to subtitle B of the Consumer Financial  Protection Act of 2010 [12 U.S.C. 5511 et seq.]. For purpose of the  exercise by the Federal Trade 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 Federal Trade Commission under the Federal Trade Commission Act are  available to the Federal Trade 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 under 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
Subject to subtitle B of the Consumer Financial Protection Act of 2010,  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], by  the appropriate Federal banking agency, as defined in section 3(q) of  the Federal Deposit Insurance Act (12 U.S.C. 1813(q)), with respect to--

(A) national banks, Federal savings associations, and Federal branches and Federal agencies of foreign banks;

(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 25A of the  Federal Reserve Act [12 U.S.C. 601 et seq., 611 et seq.]; and

(C) banks and State savings associations insured by the Federal Deposit  Insurance Corporation (other than members of the Federal Reserve  System), and insured State branches of foreign banks;

(2) 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;

(3) subtitle IV of title 49, by the Secretary of Transportation, with  respect to all carriers subject to the jurisdiction of the Surface  Transportation Board;

(4) 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;

(5) 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; and

(6) subtitle E of the Consumer Financial Protection Act of 2010 [12  U.S.C. 5561 et seq.], by the Bureau, with respect to any person subject  to this subchapter. 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
Except as provided in section 1029(a) of the Consumer Financial  Protection Act of 2010 [12 U.S.C. 5519(a)], the Bureau may prescribe  rules with respect to the collection of debts by debt collectors, as  defined in this subchapter.

15 USC 1692m

(a) Not later than one year after the effective date of this  subchapter and at one-year intervals thereafter, the Bureau shall make  reports to the Congress concerning the administration of its functions  under this subchapter, including such recommendations as the Bureau  deems necessary or appropriate. In addition, each report of the Bureau  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 Bureau under section 1692l of this title.

(b) In the exercise of its functions under this subchapter, the Bureau  may obtain upon request the views of any other Federal agency which  exercises enforcement functions under section 1692l of this title.

15 USC 1692n

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.

15 USC 1692o

The Bureau shall by regulation exempt from the requirements of this  subchapter any class of debt collection practices within any State if  the Bureau 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.

(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).

(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.

15 USC 1692 note

This title takes effect upon the expiration of six months after the  date of its enactment, but section 809 shall apply only with respect to  debts for which the initial attempt to collect occurs after such  effective date.

1. Section 604(3) has been renumbered as Section 604(a)(3).

House Report: No. 95-131 (Comm. on Banking, Finance, and Urban Affairs).

Senate Report: No. 95-382 (Comm. on Banking, Housing, and Urban Affairs).

Congressional Record, Vol. 123 (1977)
April 4, House considered and passed H.R. 5294.
Aug. 5, Senate considered and passed amended version of H.R. 5294.
Sept. 8, House considered and passed Senate version.

Enactment: Public Law 95-109 (September 20, 1977)
Amendments: Public Law Nos.
99-361 (July 9, 1986)
101-73 (August 9, 1989)
102-242 (December 19, 1991)
102-550 (October 28, 1992)
104-88 (December 29, 1995)
104-208 (September 30, 1996)
109-351 (October 13, 2006)
111-203 (July 21, 2010)