15 U.S.C. § 1692g — Validation of debts

Page 1638 TITLE 15—COMMERCE AND TRADE § 1692g strument postdated by more than five days un- less 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 pay- ment instrument for the purpose of threat- ening 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 non- judicial action to effect dispossession or dis- ablement 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 regard- ing 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. (Pub. L. 90–321, title VIII, § 808, as added Pub. L. 95–109, Sept. 20, 1977, 91 Stat. 879.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective upon the expiration of six months after Sept. 20, 1977, see section 819 of Pub. L. 90–321, as added by Pub. L. 95–109, set out as a note under section 1692 of this title. § 1692g. Validation of debts (a) Notice of debt; contents Within five days after the initial communica- tion with a consumer in connection with the collection of any debt, a debt collector shall, un- less the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written no- tice 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 por- tion 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 there- of, is disputed, the debt collector will obtain verification of the debt or a copy of a judg- ment 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 re- quests the name and address of the original creditor, the debt collector shall cease collec- tion 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 ac- tivities and communications that do not other- wise violate this subchapter may continue dur- ing the 30-day period referred to in subsection (a) unless the consumer has notified the debt collector in writing that the debt, or any por- tion of the debt, is disputed or that the con- sumer 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 dis- closure 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 valid- ity of a debt under this section may not be con- strued 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 sub- section (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 provi- sion of law, shall not be treated as an initial communication in connection with debt collec- tion for purposes of this section. (Pub. L. 90–321, title VIII, § 809, as added Pub. L. 95–109, Sept. 20, 1977, 91 Stat. 879; amended Pub. L. 109–351, title VIII, § 802, Oct. 13, 2006, 120 Stat. 2006.) Editorial Notes REFERENCES IN TEXT The Gramm-Leach-Bliley Act, referred to in subsec. (e), is Pub. L. 106–102, Nov. 12, 1999, 113 Stat. 1338. Title V of the Act is classified principally to chapter 94 (§ 6801 et seq.) of this title. For complete classification of Page 1639 TITLE 15—COMMERCE AND TRADE § 1692k this Act to the Code, see Short Title of 1999 Amend- ment note set out under section 1811 of Title 12, Banks and Banking, and Tables. AMENDMENTS 2006—Subsec. (b). Pub. L. 109–351, § 802(c), inserted at end ‘‘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 dis- puted or that the consumer requests the name and ad- dress 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.’’ Subsec. (d). Pub. L. 109–351, § 802(a), added subsec. (d). Subsec. (e). Pub. L. 109–351, § 802(b), added subsec. (e). Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section applicable only with respect to debts for which the initial attempt to collect occurs after the ef- fective date of this subchapter, which takes effect upon the expiration of six months after Sept. 20, 1977, see section 819 of Pub. L. 90–321, as added by Pub. L. 95–109, set out as a note under section 1692 of this title. § 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 applica- ble, shall apply such payment in accordance with the consumer’s directions. (Pub. L. 90–321, title VIII, § 810, as added Pub. L. 95–109, Sept. 20, 1977, 91 Stat. 880.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective upon the expiration of six months after Sept. 20, 1977, see section 819 of Pub. L. 90–321, as added by Pub. L. 95–109, set out as a note under section 1692 of this title. § 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 in- terest in real property securing the con- sumer’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 ju- dicial 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. (Pub. L. 90–321, title VIII, § 811, as added Pub. L. 95–109, Sept. 20, 1977, 91 Stat. 880.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective upon the expiration of six months after Sept. 20, 1977, see section 819 of Pub. L. 90–321, as added by Pub. L. 95–109, set out as a note under section 1692 of this title. § 1692j. Furnishing certain deceptive forms (a) It is unlawful to design, compile, and fur- nish 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 sec- tion 1692k of this title for failure to comply with a provision of this subchapter. (Pub. L. 90–321, title VIII, § 812, as added Pub. L. 95–109, Sept. 20, 1977, 91 Stat. 880.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective upon the expiration of six months after Sept. 20, 1977, see section 819 of Pub. L. 90–321, as added by Pub. L. 95–109, set out as a note under section 1692 of this title. § 1692k. Civil liability (a) Amount of damages Except as otherwise provided by this section, any debt collector who fails to comply with any provision of this subchapter with respect to any person is liable to such person in an amount equal to the sum of— (1) any actual damage sustained by such per- son as a result of such failure; (2)(A) in the case of any action by an indi- vidual, 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 min- imum 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 en- force 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 de- fendant 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 con- sider, among other relevant factors— (1) in any individual action under subsection (a)(2)(A), the frequency and persistence of non- compliance by the debt collector, the nature of such noncompliance, and the extent to which such noncompliance was intentional; or