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The Fair Debt Collection Practices Act

Fair Debt Collection Practices Act

TITLE 15. Commerce and Trade
CHAPTER 41. Consumer Credit Protection

Table of Contents
§ 1692. Congressional findings and declaration of purpose
§ 1692a. Definitions
§ 1692b. Acquisition of location information
§ 1692c. Communication in connection with debt collection
§ 1692d. Harassment or abuse
§ 1692e. False or misleading representations
§ 1692f. Unfair practices
§ 1692g. Validation of debts
§ 1692h. Multiple debts
§ 1692i. Legal actions by debt collectors
§ 1692j. Furnishing certain deceptive forms
§ 1692k. Civil liability
§ 1692l. Administrative enforcement
§ 1692m. Reports to Congress by the Commission; views of other Federal agencies
§ 1692n. Relation to State laws
§ 1692o. Exemption for State regulation

15 USCS prec § 1692
§ 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 title [15 USCS § § 1692 et seq.] 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.
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15 USCS § 1692a
§ 1692a. Definitions

As used in this title [15 USCS § § 1692 et seq.]–

(1) The term “Commission” means the Federal Trade Commission.

(2) The term “communication” means the conveying of information regarding a debt directly or indirectly to any person through any medium.

(3) The term “consumer” means any natural person obligated or allegedly obligated to pay any debt.

(4) The term “creditor” means any person who offers or extends credit creating a debt or to whom a debt is owed, but such term does not include any person to the extent that he receives an assignment or transfer of a debt in default solely for the purpose of facilitating collection of such debt for another.

(5) The term “debt” means any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance, or services which are the subject of the transaction are primarily for personal, family, or household purposes, whether or not such obligation has been reduced to judgment.

(6) The term “debt collector” means any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another. Notwithstanding the exclusion provided by clause (F) of the last sentence of this paragraph, the term includes any creditor who, in the process of collecting his own debts, uses any name other than his own which would indicate that a third person is collecting or attempting to collect such debts. For the purpose of section 808(6) [15 USCS § 1692f(6)], such term also includes any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the enforcement of security interests. The term does not include–

(A) any officer or employee of a creditor while, in the name of the creditor, collecting debts for such creditor;

(B) any person while acting as a debt collector for another person, both of whom are related by common ownership or affiliated by corporate control, if the person acting as a debt collector does so only for persons to whom it is so related or affiliated and if the principal business of such person is not the collection of debts;

(C) any officer or employee of the United States or any State to the extent that collecting or attempting to collect any debt is in the performance of his official duties;

(D) any person while serving or attempting to serve legal process on any other person in connection with the judicial enforcement of any debt;

(E) any nonprofit organization which, at the request of consumers, performs bona fide consumer credit counseling and assists consumers in the liquidation of their debts by receiving payments from such consumers and distributing such amounts to creditors; and

(F) any person collecting or attempting to collect any debt owed or due or asserted to be owed or due another to the extent such activity (i) is incidental to a bona fide fiduciary obligation or a bona fide escrow arrangement; (ii) concerns a debt which was originated by such person; (iii) concerns a debt which was not in default at the time it was obtained by such person; or (iv) concerns a debt obtained by such person as a secured party in a commercial credit transaction involving the creditor.

(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.
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15 USCS § 1692b
§ 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.
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15 USCS § 1692c
§ 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 804 [15 USCS § 1692b], 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 post judgment 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.
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15 USCS § 1692d
§ 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 603(f) or 604(3) of this Act [15 USCS § § 1681a(f) or 1681b(3)].

(4) The advertisement for sale of any debt to coerce payment of the debt.

(5) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.

(6) Except as provided in section 804 [15 USCS § 1692b], the placement of telephone calls without meaningful disclosure of the caller’s identity.
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15 USCS § 1692e
§ 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 title [15 USCS § § 1692 et seq.].

(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 603(f) of this Act [15 USCS § 1681a(f)].
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15 USCS § 1692f
§ 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.
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15 USCS § 1692g
§ 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) 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.

(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.
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15 USCS § 1692h
§ 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.
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15 USCS § 1692i
§ 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 title [15 USCS §§ 1692 et seq.] shall be construed to authorize the bringing of legal actions by debt collectors.
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15 USCS § 1692j
§ 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 813 [15 USCS § 1692k] for failure to comply with a provision of this title [15 USCS § § 1692 et seq.].
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15 USCS § 1692k
§ 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 title [15 USCS § § 1692 et seq.] 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), the court shall consider, among other relevant factors–

(1) in any individual action under subsection (a)(2)(A), the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, and the extent to which such noncompliance was intentional; or

(2) in any class action under subsection (a)(2)(B), the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, the resources of the debt collector, the number of persons adversely affected, and the extent to which the debt collector’s noncompliance was intentional.

(c) Intent. A debt collector may not be held liable in any action brought under this title [15 USCS § § 1692 et seq.] 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 title [15 USCS § § 1692 et seq.] 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.
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15 USCS § 1692l
§ 1692l. Administrative enforcement

(a) Federal Trade Commission. Compliance with this title [15 USCS § § 1692 et seq.] shall be enforced by the Commission, except to the extent that enforcement of the requirements imposed under this title [15 USCS § § 1692 et seq.] is specifically committed to another agency under subsection (b). For purpose of the exercise by the Commission of its functions and powers under the Federal Trade Commission Act [15 USCS § § 41 et seq.], a violation of this title [15 USCS § § 1692 et seq.] shall be deemed an unfair or deceptive act or practice in violation of that Act [15 USCS § § 41 et seq.]. All of the functions and powers of the Commission under the Federal Trade Commission Act [15 USCS § § 41 et seq.] are available to the Commission to enforce compliance by any person with this title [15 USCS § § 1692 et seq.], irrespective of whether that person is engaged in commerce or meets any other jurisdictional tests in the Federal Trade Commission Act [15 USCS § § 41 et seq.], including the power to enforce the provisions of this title [15 USCS § § 1692 et seq.] 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 title [15 USCS § § 1692 et seq.] shall be enforced under–

(1) section 8 of the Federal Deposit Insurance Act [12 USCS § 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) [25A] of the Federal Reserve Act [12 USCS § § 601 et seq. or § § 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 USCS § 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 USCS § § 1751 et seq.], by the Administrator of the National Credit Union Administration [National Credit Union Administration Board] with respect to any Federal credit union;

(4) the Acts to regulate commerce [49 USCS § § 10101 et seq.], by the Secretary of Transportation, with respect to all carriers subject to the jurisdiction of the Surface Transportation Board;

(5) the Federal Aviation Act of 1958 [49 USCS § § 40101 et seq.], by the Secretary of Transportation with respect to any air carrier or any foreign air carrier subject to that Act [49 USCS § § 40101 et seq.]; and

(6) the Packers and Stockyards Act, 1921 [7 USCS § § 181 et seq.] (except as provided in section 406 of that Act [7 USCS § § 226 and 227]), by the Secretary of Agriculture with respect to any activities subject to that Act [7 USCS § § 181 et seq.].

The terms used in paragraph (1) that are not defined in this title [15 USCS § § 1692 et seq.] 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 its powers under any Act referred to in that subsection, a violation of any requirement imposed under this title [15 USCS § § 1692 et seq.] shall be deemed to be a violation of a requirement imposed under that Act. In addition to its powers under any provision of law specifically referred to in subsection (b), each of the agencies referred to in that subsection may exercise, for the purpose of enforcing compliance with any requirement imposed under this title [15 USCS § § 1692 et seq.] any other authority conferred on it by law, except as provided in subsection (d).

(d) Rules and regulations. Neither the Commission nor any other agency referred to in subsection (b) may promulgate trade regulation rules or other regulations with respect to the collection of debts by debt collectors as defined in this title [15 USCS § § 1692 et seq.].
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15 USCS § 1692m
§ 1692m. Reports to Congress by the Commission; views of other Federal agencies

(a) Not later than one year after the effective date of this title and at one-year intervals thereafter, the Commission shall make reports to the Congress concerning the administration of its functions under this title [15 USCS § § 1692 et seq.], including such recommendations as the Commission deems necessary or appropriate. In addition, each report of the Commission shall include its assessment of the extent to which compliance with this title [15 USCS § § 1692 et seq.] is being achieved and a summary of the enforcement actions taken by the Commission under section 814 of this title [15 USCS § 1692l]

(b) In the exercise of its functions under this title [15 USCS § § 1692 et seq.], the Commission may obtain upon request the views of any other Federal agency which exercises enforcement functions under section 814 of this title [15 USCS § 1692l].
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15 USCS § 1692n
§ 1692n. Relation to State laws

This title [15 USCS § § 1692 et seq.] does not annul, alter, or affect, or exempt any person subject to the provisions of this title [15 USCS § § 1692 et seq.] from complying with the laws of any State with respect to debt collection practices, except to the extent that those laws are inconsistent with any provision of this title [15 USCS § § 1692 et seq.], and then only to the extent of the inconsistency. For purposes of this section, a State law is not inconsistent with this title [15 USCS § § 1692 et seq.] if the protection such law affords any consumer is greater than the protection provided by this title [15 USCS § § 1692 et seq.].
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15 USCS § 1692o
§ 1692o. Exemption for State regulation

The Commission shall by regulation exempt from the requirements of this title [15 USCS § § 1692 et seq.] any class of debt collection practices within any State if the Commission determines that under the law of that State that class of debt collection practices is subject to requirements substantially similar to those imposed by this title [15 USCS § § 1692 et seq.], and that there is adequate provision for enforcement.
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  • http://www.Credit.com/ Gerri Detweiler

    Typically no. Creditors must usually get a judgment first and that means you have to be notified of the lawsuit. This article should help:
    I Found a Judgment on My Credit Report. Now What?

  • lisa

    Can a creditor send your credit card bill to a relative? I recently moved locally and the credit card company sent my bill to one of my relatives who lives in another region of the country. I have no idea how they even determined our relationship- they don’t share my last name.

    • http://www.Credit.com/ Gerri Detweiler

      It depends. Creditors aren’t covered by the Fair Debt Collection Practices Act like third party debt collectors are, but there may be state laws that apply. You could try checking with your state consumer protection office or file a complaint with the CFPB.

  • LeeAnn Trombley

    I tried to make a payment arrangement with a debt collecter and they refused , so i then asked them if i could get a receipt when they recieved my payments they also said no they dont not have to give me anything , so i have no proof in writing that they are recieving my payments or were its going .. Is that legal..

  • Kelsey

    My husband has 4 medical collections on his credit reports. We attempted to settle with the collection agency on these 4 accounts and was informed that he has several more accounts (that are apparently over 7 years old, since they aren’t on his reports). They insisted that if we wanted to make a settlement offer it had to be on all the accounts they hold not just on the 4. Can they do that? At this point we sent the collection agency a debt validation letter via certified mail but have not received a response yet.

    • http://www.Credit.com/ Gerri Detweiler

      If those debts are outside the statute of limitations (which are usually different than the time period for reporting negative information) and the collector is insisting that you pay those first then they may be breaking the law. Research the SOL, and it you think they have expired then either file a complaint with the CFPB or talk with a consumer law attorney who regularly represents consumers in debt collection cases to find out if that’s the case. More here: 7 Things You Need to Know About the Statutes of Limitation for Debt

  • Dan Bourne

    Are medical debts any different than consumer debts? My wife has a chronic illness and even though we have insurance we get pounded with medical bills. These soulless people call her everyday and harass her, then we have been served with court papers 3 times when we have been paying on the bills a little each month. If we are paying on these each month, how can these people try to sue us all the time? Why doesn’t the government protect people who are sick?? This is a realy bad scenario for a lot of people – In Colorado the lobbyists got to the state gov and now if you don’t pay your medical bills fast enough the state will take your drivers license ?? A modern day debtors law! What a bunch of vultures these hospitals have become

  • jamue

    I had a past due amount from smud that was sold to a debt collector but now smud pick it back up and wants it in 30days can they do that after they have sold my debt.

    • http://www.Credit.com/ Gerri Detweiler

      They may not have sold it–they may have simply placed it for collection. But even if they did, presumably they could take it back if the collector was unsuccessful.

  • Peter

    Does the collection agency have to provide proof of how the debt reached the level it has? I had a student loan for 22,000 that I defaulted on and it was sent to a collection agency that now says i owe $56,000 but even after numerous requests can not show me how the debt escalated to that amount. They also took my federal tax return of $5000 and they have no documentation of that amount being removed from the debt.

    • http://www.Credit.com/ Gerri Detweiler

      I would recommend you at least get a consultation with a consumer law attorney who understands student loan law to find out if what they have done is illegal. You can locate one through the National Association of Consumer Advocates or via The Student Loan Lawyer website. The other option would be to file a complaint with the CFPB, but given the amount of money you are talking about, in my opinion it would be at least worth talking with an attorney who understands this area of law.

  • Deb Cunningham

    I owed a fine at my local public library, which according to them was in the amount of $4.00. I had special ordered this book from a library out of town. Now, I have received a bill from a collection agency for this library in the amount of $19.00. Am I obligated to pay this fine at both places? Also, why have they been allowed to charge $19.00, which is obviously a lot more than the $4.00 my library says I owe?

    • http://www.Credit.com/ Gerri Detweiler

      The collection agency has likely added on their collection costs. Paying the collection agency should resolve the debt.

  • Sara jane

    Can a third party collector add $400 to your balance after you have arranged to pay off the original balance?

    • http://www.credit.com/ Credit.com Credit Experts

      Sara Jane —
      Is this a new one (was the debt sold?). And did you have the agreement in writing? Unfortunately, you are not alone in this situation or your frustration. (See: Can a Debt Collector Double My Debt?)

  • Troy

    I opened a loan five years ago with a local company. I did not pay the loan because it came out that the employee who opened it was doing illegal practices. The company has continued to run my credit. I have four inquiries this year alone from them. Can they continue to run my credit like this?

    • http://www.Credit.com/ Gerri Detweiler

      I would suggest you report it to the CFPB and your state attorney general or contact a consumer law attorney for assistance.

  • Ryan Fallon

    I got a student loan to go to culinary school and events occurred to force me to default on my loans I’ve asked the collection agency to send me a statement regarding my balance and due date to help me keep better track of my finances however they declined stating that the debt itself is communication enough. This doesn’t sound right. Anyone know if this is legal

    • http://www.Credit.com/ Gerri Detweiler

      You have the right under federal law to request verification of the debt. Exactly what they must send you is a bit unclear, but they shouldn’t refuse you this right. You may need to get the CFPB or a consumer law attorney involved.

  • Matt Kahler

    Is it actually legal for a Collections Agency to tell me “If you pay on time, and pay the agreed amount, you can save your credit score from any negative marks”?

    I ask because I paid everything per agreed, on time, and in full (including interest), and I now have a negative collections mark on my credit score from the collections agency. Thankfully it has it as paid in full, but the mark is still there.

    • http://www.Credit.com/ Gerri Detweiler

      If they told you that but then it didn’t happen, then it certainly sounds like a misrepresentation to me. You can either file a complaint with the CFPB or consult a consumer law attorney for help.

      • Matt Kahler

        Thank you for the insight! I’ve gone ahead and filed a complaint with the CFPB, which was a fantastically easy process. Consider me impressed with the ease-of-use for such a site!

        • http://www.Credit.com/ Gerri Detweiler

          Good to hear. Let us know what happens!

  • Nena Martinez

    Sprint has sent an account to collections under my name for an account 10 years old. We have received no bill, it is not reported on my credit report. I am not even sure it is my debt, we have switched banks and 10 years of receipts are not available. We have moved from VA to FL. The supposed debt occurred in VA. They have called stating that a lawsuit has been filed against me. What in the world???? Any advice?

    • http://www.Credit.com/ Gerri Detweiler

      Something doesn’t sound right. Are you sure you are dealing with a legitimate collection agency and not a scammer? My understanding is the statute of limitations in Virginia for written contracts is five years, and the same in Florida. Have you received anything in writing (as required by law)? Have you checked out this collector on DebtLookUp.com?

  • Veto Corleon

    hoping to see if there is anything i can do. I recently had a debt collected for a fine i didnt pay when i was younger. I did not know it but my license was suspended due to the fine. I paid the fine via a check over the phone. So they released my license and i paid the reinstatement fees to dmv. Well then they submitted the check and it didnt go through due to the fact that the lady who took my check added the check number to the account info. They promptly re suspended my license and charged me 55 bucks. I called and talked to them and they said regardless of whos fault it is i was stuck with the extra bill. Plus i had to pay 75 dollars more to reinstate my license again. Is there anything i can do about this?

    • http://www.Credit.com/ Gerri Detweiler

      Veto – Call you state legislator’s office (your state representative). They often have staff members who help constituents cut through red tape with government agencies and this sounds like something they should help you with.


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