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104TH CONGRESS

1ST SESSION H. R. 1711

To improve the administration of the Fair Debt Collection Practices Act.

IN THE HOUSE OF REPRESENTATIVES

MAY 25, 1995

Mr. BACHUS introduced the following bill; which was referred to the

Committee on Banking and Financial Services

A BILL

To improve the administration of the Fair Debt Collection

Practices Act.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Fair Debt Collection

5 Practices Amendments of 1995’’.

6 SEC. 2. AMENDMENTS TO FAIR DEBT COLLECTION PRAC7 TICES ACT.

8 (a) DISCLOSURE OF PURPOSE OF COMMUNICA9 TION.—Section 807(11) of the Fair Debt Collection Prac10 tices Act (15 U.S.C. 1692e(11)) is amended by striking

11 ‘‘in all communications made to collect a debt’’ and insert-
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1 ing ‘‘in the initial written communication with a consumer

2 to collect a debt’’.

3 (b) NOTICE OF ASSUMPTION OF VALIDITY OF

4 DEBT.—Section 809(a)(3) of the Fair Debt Collection

5 Practices Act (15 U.S.C. 1692g(a)(3)) is amended—

6 (1) by inserting ‘‘appearing in type at least as

7 large as 8-point type’’ after ‘‘statement’’;

8 (2) by striking ‘‘disputes’’ and inserting ‘‘noti9 fies the debt collector in writing that’’; and

10 (3) by inserting ‘‘is disputed,’’ after ‘‘any por11 tion thereof,’’.

12 (c) COLLECTION DURING 30-DAY PERIOD.—Section

13 809 of the Fair Debt Collection Practices Act (15 U.S.C.

14 1692g) is amended by adding at the end the following new

15 subsection:

16 ‘‘(d) COLLECTION ATTEMPTS DURING 30-DAY PE17 RIOD.—Except as provided in subsection (b), a debt collec18 tor may attempt to collect a debt during the 30-day period

19 described in subsection (a) and may demand that payment

20 be made during such period.’’.

21 (d) RELATION TO STATE LAW.—Section 816 of the

22 Fair Debt Collection Practices Act (15 U.S.C. 1692n) is

23 amended—

24 (1) by striking ‘‘This title’’ and inserting ‘‘(a)

25 IN GENERAL.—This title’’; and
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1 (2) by adding at the end the following new sub2 sections:

3 ‘‘(b) NO REMEDY UNDER THIS TITLE FOR STATE

4 LAW VIOLATIONS.—This title shall not be construed as

5 providing a remedy for any violation of the law of any

6 State with respect to debt collection practices.

7 ‘‘(c) NO LIABILITY UNDER THIS TITLE FOR STATE

8 LAW VIOLATIONS.—This title shall not be construed as

9 establishing any liability or penalty for a violation of the

10 law of any State unless the conduct which constitutes a

11 violation of the law of such State also constitutes a viola12 tion of any requirement of this title or regulations pre13 scribed pursuant to this title.’’.

14 (e) ACQUISITION OF INFORMATION.—Section 804 of

15 the Fair Debt Collection Practices Act (15 U.S.C. 1692b)

16 is amended—

17 (1) by striking ‘‘Any debt collector’’ and insert18 ing ‘‘(a) IN GENERAL.—Any debt collector’’; and

19 (2) by adding at the end the following new sub20 section:

21 ‘‘(b) COMMUNICATION WITH PERSONS OTHER THAN

22 ATTORNEYS FOR CERTAIN PURPOSES.—Notwithstanding

23 subsection (a)(6), a debt collector who knows the

24 consumer is represented by an attorney may communicate

25 with any person other than such attorney for purposes of
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1 obtaining location, income, asset, or credit information

2 about the consumer if the attorney refuses to provide such

3 information to the debt collector and the debt collector has

4 otherwise complied with subsection (a)(6).’’.

5 (f) SAFE HARBOR FOR UNINTENTIONAL VIOLATIONS

6 RESULTING FROM USE OF APPROVED FORMS.—Section

7 813(c) of the Fair Debt Collection Practices Act (15

8 U.S.C. 1692k(c)) is amended by inserting before the pe9 riod at the end ‘‘or resulted from the use of a form of

10 written communication which was approved by any State

11 or Federal agency which regulates debt collectors’’.

12 (g) EXEMPTION OF FEDERAL OR STATE EMPLOYEES

13 LIMITED TO COLLECTION IN THE COURSE OF EMPLOY14 MENT.—Section 803(6) of the Fair Debt Collection Prac15 tices Act (15 U.S.C. 1692a(6)) is amended by inserting

16 ‘‘while acting as a debt collector for debt owed to the

17 United States or such State,’’ after ‘‘officer or employee

18 of the United States or any State.’’.

19 (h) ‘‘REASONABLE PERSON’’ STANDARD.—Section

20 813 of the Fair Debt Collection Practices Act (15 U.S.C.

21 1692k) is amended by adding at the end the following new

22 subsection:

23 ‘‘(f) ‘REASONABLE PERSON’ STANDARD.—In making

24 a determination as to whether or not a debt collector has

25 failed to comply with any provision of this title with re-
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1 spect to any person, the court shall consider the effect of

2 any act or omission of the debt collector upon a reasonable

3 person.’’.

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