of New York, 

Plaintiffs, 

V. 

HYLAN ASSET MANAGEMENT, LLC, et al., 

Defendants. 

STIPULATED ORDER FOR 

PERMANENT INJUNCTION AND 

MONETARY JUDGMENT AS TO 

FRANK A. UNGARO, JR. AND 

WORLDWIDE PROCESSING 

GROUP,LLC 

Plaintiffs the Federal Trade Commission ("Commission") and the People of the State of 

New York, by the Attorney General of the State of New York ("NY AG"), commenced this civil 

action on June 26, 2018 by filing a complaint (the "Complaint") for temporary, preliminary, and 

permanent injunctive relief and other equitable relief pursuant to Section 13(6) of the Federal 

Trade Commission Act ("FTC Act"), 15 U.S.C. § 53(6), Section 814(a) of the Fair Debt 

Collection Practices Act ("FDCPA"), 15 U.S.C. § 1692l(a), N.Y. Executive Law§ 63(12), and 

N.Y. General Business Law Article 22-A, § 349 and Article 29-H, § 601 . Plaintiffs amended 

their complaint on August 27, 2018 and named additional defendants. Plaintiffs and Defendants 

Frank A. Ungaro, Jr. and Worldwide Processing Group, LLC, stipulate to the entry of this 

Stipulated Order for Permanent Injunction and Monetary Judgment ("Order") to resolve all 

matters in dispute in this action between them. 

THEREFORE, IT IS ORDERED as follows: 

FINDINGS 

1. This Court has jurisdiction over this matter. 
§ 

3. Defendants neither admit nor deny any of the allegations in the Complaint, except as 

specifi cally stated in this Order. Only for purposes of this action, Defendants admit the 

facts necessary to establish jurisdiction. 

4. Defendants waive any claim that they may have under the Equal Access to Justice Act. 

28 U.S.C. § 2412, concerning the prosecution of this action through the date of this 

Order. and agree to bear their own costs and attorney fees. 

5. Defendants and Plaintiffs waive all rights to appeal or other.vise challenge or contest the 

valid ity of this Order. 

DEFT ITIO S 

for the purpose of this Order, the following definitions apply: 

A. "Corporate Defendant" means Worldwide Processing Group, LLC. and by 

whatever other names it may be known, and its successors and assigns, as well as 

any subsidiaries, affiliates, and any fictitious business entities or business names 

created or used by these entities. or any of them. 

B. "Credit Repair Service·· means selling. providing. or perfonning any service (or 

representing that such service can or will be sold, provided, or performed) through 

the use of any instrumentality of interstate commerce or the mails, in return for 

the payment of money or other valuable consideration, for the express or implied 

purpose of (i) improving any consumer's credit record, credit history. or credit 

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D. "'Debt-Collection Activities'' means any activities of a Debt Collector to collect 

or attempt to collect, directly or indirectly. a Debt owed or due, or asserted to be 

owed or due. 

E. '·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. The term 

also includes any creditor who. in the process of collecting its own Debts, uses 

any name other than its own which would indicate that a third Person is collecting 

or attempting to co llect such Debts. The term also includes any Person to the 

extent such Person collects or attempts to collect any Debt that was in default at 

the time it was obtained by such Person. 

F. "'Debt Portfolio" means spreadsheets. databases. tables, lists, or any other 

compilation of information describing Debts or purported Debts owed by 

individuals to a business. 

G. "'Defendants .. means the Individual Defendant and the Corporate Defendant. 

individually. collectively. or in any combination. 

IL ·'Financial Product or Service" means any product. service. plan. or program 

represented. expressly or by implication, to: 

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3. provide to any consumer, arrange for any consumer to receive, or assist 

any consumer in receiving. any Secured or Unsecured Debt Relief Product 

or ervtce. 

I. ··Hylan Defendants .. means Andrew Shaevel, Jon E. Purzhansky. Bobalew 

Management Corporation; Bobalew, LLC; 6P Management Corporation; 6P. 

LLC: Hylan Asset Management, LLC; and by whatever other names they may be 

known, and their successors and assigns. as well as any subsidiaries. affiliates. 

and any fictitious business entities or business names created or used by these 

individuals. these entities. or any of them. 

J. "'Individ ual Defendant" means Frank A. Ungaro, Jr. 

K. "Investigation," for purposes of this Order. includes objectively evaluating the 

circumstances and considering information, including an assessment of the 

relevance. reliability, accuracy. integrity. and completeness of such information. 

to determine whether a debtor owes a Debt in the amount asserted by Defendants 

while collecting on Debt. The information Defendants shall assess in an 

Investigation. where applicable. shall include but not be limited to: 

I. the information that Defendants received, directly or indirectly. from the 

credit originator or the creditor to whom the Debt is owed. such as: (a) the 

debtor's credit application, (b) the credit contract between the debtor and 

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with the date and outstanding balance at charge-off, and (g) Debt 

Collector's notes: 

2. the information that Defendants received from data aggregators. data 

brokers, consumer reporting agencies. skip tracers. and other third-parties. 

such as: (a) documents with the current or fonner name, address, and 

telephone number of the debtor, (b) documents with consumer-report 

information, including credit scores and updates to the information in 

credit reports, and (c) the scoring of the Debt through the use of a 

predictive model: 

3. the information that Defendants created or maintained in collecting on 

the Debt. such as Debt Collectors' notes; and the information 

Defendants received from the debtor denying. disputing, or challenging 

the claim that the debtor owes the Debt or the amount of the Debt such 

as: (a) documents with the debtor's current or former name, address, 

and telephone number, (b) receipts or other evidence of payment from 

the credit originator. the creditor to whom the Debt is owed, or a Debt 

Collector. (c) canceled checks, bank account statements. credit card 

statements. and other documents evidencing payment, and (d) a 

consumer report relevant to the disputed item. 

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M. 

secured or Unsecured Debt Relief Product or Service

 means, with respect to 

any mortgage. loan, Debt, or obligation between a Person and one or more 

secured or unsecured creditors or Debt Collectors, any product, service. plan, or 

program represented, expressly or by implication, to: (A) negotiate, settle, or in 

any way alter the terms of payment or other terms of the mortgage, loan, Debt. or 

obligation. including but not limited to, a reduction in the amount of interest. 

principal balance, monthly payments. or fees owed by a Person to a secured or 

unsecured creditor or Debt Collector: (B) stop. prevent. or postpone any mo11gage 

or deed of foreclosure sale for a Person's dwelling, any other sale of collateral. 

any repossession of a Person's dwelling or other collateral, or otherwise save a 

Person·s dwelling or other collateral from foreclosure or repossession; (C) obtain 

any forbearance or modi fica tion in the timing of payments from any secured or 

unsecured holder of any mortgage. loan. Debt, or obligation; (D) negotiate. 

obtain, or arrange any extension of the period of time within wh ich the Person 

may (i) cure his or her default on the mortgage. loan, Debt. or obligation, (ii ) 

reinstate his or her mortgage. loan, Debt. or obligation, (iii) redeem a dwelling or 

other collateral, or (iv) exercise any right to reinstate the mortgage. loan, Debt. or 

obligation or redeem a dwelling or other collateral; (E) obtain any waiver of an 

acceleration clause or balloon payment contained in any promissory note or 

contract secured by any dwell ing or other collateral; or (F) negotiate, obtain. or 

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limited to, auditing or examining a Person's application for the mortgage. loan. 

Debt. or obligation. 

l\. ··sQ Capital Defendants" means Joel Jerome Tucker. SQ Capital, LLC JT 

Holdings, Inc., and HPD LLC. and by whatever other names they may be known. 

and their successors and assigns, as well as any subsidiaries, affiliates. and any 

fictitious business entities or business names created or used by this individual. 

these entities, or any of them. 

ORDER 

I. 

PROHIBITION AGAINST UNLAWFUL COLLECTION PRACTICES 

IT IS ORDER FD that Defendants, Defendants· officers. agents, employees. and 

attorneys, and all other Persons in active concert or participation with any of them, ho receive 

actual notice of this Order. whether acting directly or indirectly. in connection with DebtCollection Acti vi ties. are permanently restrained and enjoined from: 

A. Using any false, deceptive, or misleading representation or means, including, 

but not limited to. falsely representing, directly or indirectly, expressly or by 

implication: 

I. the character, amount, or legal status of any Debt; 

') that a consumer is delinquent on a Debt; 

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B. Commun icati ng with Persons other than the consumer. the consumer's attorney, 

a consumer reporting agency if otherwise permitted by law, the creditor, the 

attorney of the creditor. the attorney of the Debt Collector, the consumer·s 

spouse, parent (if the consumer is a minor). guardian, executor, or administrator 

for purposes other than acquiring location information about the consumer. 

without having obtained directl.} the prior consent of the consumer or the express 

permission of a court of competent jurisdiction. and when not reasonably 

necessary to effectuate a post judgment judicial remedy: 

C. Threatening to take an action that Defendants cannot legally take ; 

D. Failing to disclose in the initial communication with a consumer that Defendants 

are Debt Collectors attempting to collect a Debt and that any information 

obtai ned will be used for that purpose, or failing to disclose in subsequent 

communications that the communication is from a Debt Collector; 

E. Fai ling to provide consumers. either in the initial communication or a written 

notice sent within five days after the initial communication, with the infonnation 

required by Section 809(a) of the FDCPA. 15 U.S.C. ':i 1692g(a), including 

information about the Debt and consumers' rights to dispute the Debt; and 

8 
PROHIBITED MISREPRESENT A TIO NS RELA TI G TO 

FINANCIAL PRODUCTS OR SERVICES 

IT IS FURTHER ORDERED that Defendants, Defendants· offi cers, agents. employees. 

and attorneys, and all other Persons in active concert or participation with any of them. who 

receive actual notice of this Order, whether acting directly or indirectly, in connection with 

promoting or offering for sale any Financial Product or Service, are permanently restrained and 

enjoined from misrepresenting or assisting others in misrepresenting, expressly or by 

implication. any material fact, including but not limited to: 

A. the terms or rates that arc available for any loan or other extension of credit: 

B. any aspect of any Credit Repair Service, including but not limited to (a) any 

Person's ability to improve or otherwise affect a consumer"s credit record, credit 

history, or credit rating or ability to obtain credit; or (b) that any Person can 

improve any consumer's credit record, credit history, or credit rating by 

permanently removing negative information from the consumer·s credit record. 

credit history, or credit rating, even where such information is accurate and not 

obsolete; 

C. any aspect of any Secured or Unsecured Debt Relief Product or Service. including 

but not limited to. the amount of savings a consumer will receive from 

purchasing, using, or nrolling in such Secured or Unsecured Debt Relief Product 

9 
that a Financial Product or Service is guaranteed, assured. highly likely or 

probable, or very highly likely or probable. 

Ill. 

PROHIBITION AGAINST MISREPRESENTATIONS 

RELATING TO ANY PRODUCTS OR SERVICES 

IT IS FURTHER ORDERED that Defendants. Defendants' officers, agents. employees. 

and attorneys. and all other Persons in active concert or patticipation with any of them. who 

receive actual notice of this Order, whether acting directly or indirectly, in connection with 

promoting or offering for sale an) good or service, are permanently restrained and enjoined from 

misrepresenting or assisting others in misrepresenting, expressly or by implication, any material 

fact including but not limited to : 

A. that any Person is an attorney or affiliated or associated with an attorney or law 

firm; 

B. the nature or terms of any re fund. cancellation. exchange. or repurchase policy. 

including. but not limited to, the likelihood of a consumer obtaining a full or 

partial refund, or the cin.:umstances in which a full or partial refund will be 

provided to the consumer: 

C. that any Person is affiliated with. endorsed or approved by, or otherwise 

conn -cted to any other Person, government entity, or other public or commercial 

entity. including a court system; and 

10 
good or service; (2) any material restriction. limitation, or condition to purchase. 

receive. or use any good or service: or (3) any material aspect of the performance. 

efficacy, nature, or central characteristics of any good or serv ice. 

IV. 

PROHIBITION AGAINST UNSUBSTANTIATED CLAIMS 

IT IS FURTHER ORDERED that Defendants, Defendants· officers, agents, employees. 

and attorneys. and all other Persons in active concert or partic ipation with any of them. who 

rece ive actual notice of this Order, whether acting directly or indirectly, in connection with DebtCollection Activities. are permanently restrained and enjoined from: 

A. Representing. expressly or by implication. that a debtor owes a Debt. that 

Defendants have authority to collect on a Debt, or the amount of a Debt, when, at 

the time of the representation. Defendants do not possess and rely upon competent 

and re liable evidence that is sufficient to substantiate that the representation is 

true. includi ng but not limited to instances where: 

I. Debtors have disputed or attempted to dispute the validity or accuracy of 

the Debt and Defendants have failed to review information substantiating 

the amount of Debt or failed to consider the debtors' disputes, prior to 

continuing collection: or 

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g, after a debtor denies, disputes, or challenges the Defendants

 claim that 

the debtor owes the Debt or owes the Debt in the amount asserted. to: 

1. within fourteen ( 14) days after the denial, dispute, or challenge, or when 

the Debt is next reported to a consumer reporting agency, if earlier: report 

the Debt as disputed or request deletion of that item from the debtor's 

credit reporting file by any credit reporting agency to which the Debt was 

reported by Defendants; and 

2. promptly after the denial. dispute. or challenge: 

(a) cease collection. and not sell, provide, or transfer the Debt to any 

Person or entity other than the creditor to whom the Debt is owed: 

or 

(b) commence and complete, within thirty (30) days after a debtor 

denies. disputes, or challenges Defendants' claim that the debtor 

owes the Debt or that it owes the Debt in the amo unt asserted. an 

Investigation of the denial. dispute. or challenge. provided that 

Defendants shall not be required to investigate any denial. dispute. 

or challenge more than once unless the debtor provides to 

Defendants or the Defendants otherwise acquire or obtain 

information. data, or documentation that was not considered in any 

prior Investigation. Defendants shall notify the debtor within 

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, 

(

) 

days of reaching their conclusion, shall provide verification 

of the Debt to the debtor. inform the debtor of their 

conclusion. and provide the basis for it, after which the) 

may continue collection. If the debtor continues to dispute 

the Debt. nothing in this order supersedes the requirement 

of§ 623(a)(3) of the Fair Credit Reporting Act ("FCRA "). 

15 U.S.C. § 1681 s-2(a)(3). that Defendants convey the 

dispute when furnishing information on the Debt to any 

consumer reporting agency. 

(ii) If the results of the Investigation sho\.\- that the debtor doe 

not owe the Debt or the Debt cannot be verified. Defendants 

shall. within five (5) days of reaching their conclusion: (a ) 

inform the debtor of their conclusion and the basis for it: 

(b) request that each consumer reporting agency to which 

the Debt has been repo1ied delete the Debt from the 

debtor's credit reporting file; (c) cease collection; and (d ) 

not sell. provide. or transfer the Debt to any Person or entity 

other than the creditor to whom the Debt is allegedly owed. 

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(

) 

and the basis for it; and (b) provide to each consumer 

reporting agency to which the Debt has been reported any 

correction to the reported information that is necessary to 

make the information provided by Defendants accurate. 

after which they may continue collection. 

PrmMed that, if the debtor initiates contact with Defendants by any means. Defendants may 

respond to the debtor· prior to the completion of the Investigation. 

Provided further that, nothing in this Section affect Defendants' obligation to compl. with all 

applicable provisions of the FDCPA and the FCRA. 

Provided further that, nothing in this Section prohibits Defendants from requiring debtors who 

deny. dispute, or challenge a Debt on the grounds of fraud or identity thefl: to do so in writing, 

so long as Defendants clearly and conspicuously disclose these requirements to debtors. Once 

Defe ndant receives an identity theft report, the requirements of§ 623(a)(6){B) of the FCRA. 15 

U.S.C. § 1681s-2(a)(6)(B). apply. 

V. 

PROHIBITION 0 1\ DISCLOSURE OF 

l~ACCURA TE CONSUMER INFORMATION 

IT IS FURTHER ORDERED that Defendants. Defendants' officers, agents. employees, 

and attorneys. and al l other Persons in active concert or participation with any of them. who 

14 
notwithstanding any alternative compliance methods that may be generally available under 

Section 623(a)(l )(C) of the Fair Credit Reporting Act. 15 U .S.C. 1681 s-2(a)(l )(C). while 

knowing or having reason to believe that the information is inaccurate. 

VI. 

CONSUMER INFORMATION 

IT IS FU RTHER ORDERED that Defendants. Defendants' officers, agents. employees. 

and attorneys. and all other Persons in active concen or partici pation with any of them, who 

receive actual notice of this Order are permanently restrained and enjoined from directly or 

indirectly: 

A. failing to provide sufficient consumer information to enable the Plaintiffs to 

efficiently administer consumer redress. If representatives of either Plaintiff 

request in writing any infonnation related to redress, Defendants must provide it. 

in the fonn prescribed by the Plaintiff. within 14 days; 

B. disclosing, using, or benefitting from consumer information, including the name. 

address. telephone number. email address, social security number, other 

identifying information. or any data that enables access to a consumer's account 

(including a credit card, bank account, or other financial account), that any 

Defendant obtained directly or indirectly from any of the Hylan Defendants or 

any of the SQ Capital Defendants: and 

15 
Provided, however, that customer information need not be disposed of, and may be disclosed, to 

the extent requested by a government agency or required by law, regulation, or court order. 

VII. 

MONETARY JUDGMENT AND PARTIAL SUSPENSION 

IT IS FURTHER ORDERED that: 

A. Judgment in the amount of four million, nine hundred forty thousand dollars 

($4,940,000) is entered in favor of the Plaintiffs against the Defendants, jointly 

and severally, as equitable monetary relief. 

B. Defendants are ordered to pay to the Commission one hundred eighteen thousand 

dollars ($118,000). Such payment must be made within sixty (60) days of entry 

of this Order by electronic fund transfer in accordance with instructions 

previously provided by a representative of the Commission. Upon such payment, 

the remainder of the judgment is suspended, subject to the Subsections below. 

C. The Plaintiffs' agreement to the suspension of part of the judgment is expressly 

premised upon the truthfulness, accuracy, and completeness of Defendants' sworn 

financial statements, deposition testimony, and related documents (collectively, 

"financial statements") submitted to Plaintiffs, namely: 

1. the Financial Statement of the Individual Defendant signed on December 

19, 2018, including the attachments; 

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4. Individual Defendant's 2014, 2015, and 2016 federal and New· York tax 

returns submitted electronically on August 7. 2018. 

D. The suspension of the judgment will be lifted as to any Defendant iC upon motion 

by the Plaintiffs. the Court finds that Defendant failed to disclose any material 

asset, materially misstated the value of any asset, or made any other material 

misstatement or omission in the financial representations identified above. 

E. If the suspension of the judgment is lifted, the judgment becomes immediate ly 

due as to that Defendant in the amount specified in Subsection A. above (which 

the parties stipulate only fo r purposes of this Section represents the consumer 

injury alleged in the Complaint). less any payment previously made pursuant to 

this Section, plus interest computed from the date of entry of this Order. 

F. Defendants relinquish dominion and all legal and equitable right. title, and interest 

in all assets transferred pursuant to this Order and may not seek the return of any 

assets. 

G. The facts alleged in the Complaint will be taken as true, without further proof: in 

any subsequent civil litigation by or on behalf of the Commission or the NY AG. 

including in a proceeding to enforce their rights to any payment or monetary 

judgment pursuant to this Order. such as a nondischargeability complaint in any 

bankruptcy case. 

17 
estoppel effect for such purposes. 

I. Defendants acknowledge that their Taxpayer Identification Numbers (Social 

Security Numbers or Employer Identification Numbers), which Defendants 

previously submitted to the Commission, may be used for collecting and reporting 

on any delinquent amount arising out of this Order, in accordance with 31 U.S.C. 

§7701. 

J. All money paid to the Plaintiffs pursuant to this Order may be deposited into a 

fund administered by the Plaintiffs or their designee to be used for equitable 

relief, including consumer redress and any attendant expenses for the 

administration of any redress fund. If representatives of the Plaintiffs decide that 

direct redress to consumers is wholly or partially impracticable or money remains 

after redress is completed. the Plaintiffs may apply any remaining money for such 

other equitable relief (including consumer information remedies) as they 

determine to be related to Defendants· practices alleged in the Complaint. The 

Pla intiffs shall retain authority and sole discretion ov r the division among 

Plaintiffs of any funds not used for equitable relief. Any money paid to the 

Commission not used for such equitable relief is to be deposited to the U.S. 

Treasury as disgorgement. Any money paid to the State of New York not used 

fo r equitable relief may be used to the full extent authorized by the State of New 

York's laws, including but not limited to, as payment for the State of New York's 

18 
VIII. 

COO PERA Tl ON 

IT IS FURTHER ORDERED that Defendants must fully cooperate with representatives 

of Plaintiffs in this case and in any investigation related to or associated with the transactions or 

the occurrences that are the subject of the Complaint. Defendants must provide truthful and 

complete information. evidence. and testimony. Individual Defendant must appear and 

Corporate Defendant must cause Corporate Defendant" s officers, employees. representatives. or 

agents to appear for interviews. discovery, hearings, trials, and any other proceedings that a 

Plaintiffs' representative may request upon 5 days written notice. or other reasonable notice, at 

such places and times as a Plaintiff representative may designate. without the service of a 

subpoena. 

IX. 

ORDER ACKNOWLEDGMENTS 

IT IS FCRTHER ORDERED that Defendants obtain acknowledgments of receipt of this 

Order: 

A. Each Defendant within 7 days of entry of this Order. must submit to the 

Commission and the NY AG an acknowledgment of receipt of this Order sworn 

under penalty of perjury. 

B. For 10 years after entry of this Order, Individual Defendant for any business that 

such Defendant, individually or collectively with any other Defendants, is the 

majority owner or controls directly or indirectly. and each Corporate Defendant 

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forth in the Section titled Compliance Reporting. Delivery must occur with in 7 

days of entry of this Order for current personnel. For all others, delivery must 

occur before they assume their responsibilities. 

C. From each individual or entity to which a Defendant delivered a copy of this 

Order, that Defendant must obtain, within 30 days, a signed and dated 

acknowledgment of receipt of this Order. 

X. 

COMPLIANCE REPORTING 

IT IS FURTHER ORDERED that Defendants make timely submissions to Plaintiffs: 

A. One year after entry of this Order, each Defendant must submit a compliance 

report, _ worn under penalty of perjury: 

1. Each Defendant must: (a) identify the primary physical, postal, and email 

address and telephone number. as designated points of contact wh ich 

r presentatives of the Plaintiffs may use to communicate with D fendant: 

(b) identify all of that Defendant's businesses by all of their names, 

telephone numbers, and physical, postal, email, and Internet addresses; (c ) 

describe the activities of each business. including the goods and services 

offered. the means of advertising, marketing, and sales. and the 

involvement of any other Defendant (which Individual Defendant must 

20 
Acknowledgment obtained pursuant to this Order, unless previously 

submitted to the Commission. 

2. Additionally. Indiv idual Defendant must: (a) identify all telephone 

numbers and all physical. postal. email and Internet addresses, including 

a ll residences: (b) identify all business activities. including any business 

for which such Defendant performs services whether as an employee or 

otherwi. e and any entity in which such Defendant has any ownership 

interest; and (c) describe in detail such Defendant" s involvement in each 

such business. including title, role, responsibilities, participation, 

authority. control. and any O\.\·nership. 

8. For 20 years after entry of this Order, each Defendant must submit a compliance 

notice, sworn under penalty of perjury, within 14 days of any change in the fo llowing: 

I. Each Defendant must report any change in: (a) any designated point of 

contact; or (b) the structure of any Corporate Defendant or any entity that 

Defendant has any ownership interest in or controls directly or indirectly 

that may affect compliance obligations arising under this Order. including: 

creation, merger. sale. or dissolution of the entity or any subsidiary. 

parent, or affiliate that engages in any acts or practices subject to this 

Order. 

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Defendant performs services whether as an employee o

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entity in which such Defendant has any ownership interest, and identify 

the name. physical address. and any Internet address of the business or 

entity. 

C. Each Defendant must submit to Plai ntiffs notice of the filing of any bankruptcy 

petition, insolvency proceeding. or similar proceeding by or against such 

Defendant within 14 days of its filing. 

D. Any submission to Plaintiffs required by this Order to be sworn under penalty of 

perjury must be true and accurate and comply with 28 U.S.C. § l 746, such as by 

concluding: --1 declare under penalty of perjury under the laws of the United 

States of America that the foregoing is true and correct. Executed on: __ ·· 

and supplying the date, signatory's full name, title (if applicable), and signature. 

E. Unless otherwise directed by a Commission representative in writing. all 

submissions to the Commission pursuant to this Order must be emailed to 

DEbri f@ftc.gov or sent by overnight courier (not the U.S. Postal Service) to: 

Associate Director for Enforcement. Bureau of Consumer Protection. Federal 

Trade Commission, 600 Pennsylvania Avenue NW, Washington, DC 20580. 

The subject line must begin: FTC v. Hylan Asset Management, LLC. et al.. 

X 180037. Unless otherwise directed by a NY AG representative in writing. all 

submissions to the NY AG pursuant to this Order must be emailed to 
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XI. 

RECORD KEEPING 

IT IS FURTHER ORDERED that Defendants must create certain records for 20 years 

after entry of the Order, and retain each such record for 5 years. Specifically, Corporate 

Defendant and Individual Defendant for any business that such Defendant, individually or 

collectively with any other Defendant, is a majority owner or controls directly or indirectly, must 

create and retain the following records: 

A. accounting records showing the revenues from all business activity; 

B. personnel records showing, for each Person providing services, whether as an 

employt:e or otherwise. that Person· s: name; addresses; telephone numbers: job 

title or position: dates of service; and ( if applicable) the reason for termination; 

C. records of all consumer complaints and refund requests. whether received directly 

or indirectly. such as through a third party, and any response; 

D. all r ~ords necessary to demonstrate full compliance with each provision of this 

Order, including all submissions to Plaintiffs; 

E. copies of all contracts with payment processors; and 

F. a copy of each unique advertisement or other marketing material. 

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suspended and any failure to transfer any assets as required by this Order: 

/\. Within I 4 days of receipt of a written request from a representative of the Plaintiffs. each 

Defendant must: submit additional compliance reports or other requested information. 

v.·hich must be sworn under penalty of perjury; appear for depositions; and produce 

documents for inspection and copying. The Plaintiffs are also authorized to obtain 

discovery, without further lea\·e of court, using any of the procedures prescribed by 

Federal Rules of Civil Procedure 29. 30 (including telephonic depositions). 31. 33, 34. 

36. 45. and 69. 

B. For matters rnncerning this Order. the Plaintiffs are authorized to communicate directly 

\\ ith each Defendant. Defendants must permit representatives of the Plaintiffs to 

interview any employee or other Person affiliated with any Defendant who has agreed to 

such an interview. The Person interviewed may have counsel present. 

C. The Plaintiffs may use all other lawful means. including posing. through their 

representatives as consumers. suppliers. or other individuals or entities. to Defendants or 

anv 

. 

individual or 

. 

entitv affiliated with Defendants, without the necessity of identification 

or prior notice. Nothing in this Order limits the Commission's lawful use of compulsory 

process, pursuant to Sections 9 and 20 of the FTC Act, 15 U.S.C. §§ 49. 576-1. 

24 
XIII. 

RETENTION OF JURISDICTION 

IT IS FURTHER ORDERED that this Court retains jurisdiction of this matter for 

purposes of construction, modification, and enforcement of this Order. 

25 
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26 
Attachment A 

Fair Debt Collection Practices Act 

15 u.s.c. §§ 1692-1692p 
and punitive damages and

 after 

be appropriate. in

cluding" . 

Subsec. (k). Pub. L. 102 242, §223<c), added snbsec . <kJ. 

197&- Snbsec. (a). Pub. L. 94 239 substitu t ed reference 

to member for reference to representative. 

Subsec. (b). Pub. L. 94- 239 inserted provisions exempting· government 01· irovernmental subdivision or agency 

from requirements of this subchapter, incorporated 

provisions contained in former subsec. 1 c l re la ling to 

recovery in class actions and, as incorporated, raised 

the total amount of re covery uncler a class action from 

$100,000 Lo $500 .000. 

Subsec. (c l. Pub. L. 94- 239 redesignated subsec. 1cl) as 

(c) and s pecified United States district court or other 

court of c ompetent Jurisdiction as court in whi ch to 

bring act.ion. and s ubst ituted provisions authorizing 

s uch c.'ourt to g rant eq uitable and declaratory relief, for 

provisions authorizing civil actions for preventive relief. Provisions of former s ubsec. (CJ were incorporated 

into presen t snbsec. <bl a nd am ended. 

Subsec. (tl). Pub. L. 91 239 redesignated subsec . 1eJ as 

(ii) and made minor ch nnges in phraseolog·y. Former 

s ubsec. id) redesignated IC) a nd amended. 

Subsec. (e J. Pub. L. 94-·239 redesig-nated subsec. (f) as 

1 e) and inse rted reference to 

m cially promulgated 

rule, reg·nlation, or interpretation and provisions relating to approval and interpretations by an officia l or 

employee of the Federal Reserve System cluly authorize1l by the Board. Former suhsec. (el retlesig·nat.1id (cl) 

a nd amended. 

Subsec. 10. Pub. L. 94 •239 redesig·nated subsec . (g ) as 

lfJ anti inserted provisions whi ch substituted a two year 

limitation for one year limitation a nd provisi ons extending ti nlf' in which to IJr.ing action under enumerated conditions. Former suhsec. < fJ r edesignated <e) a nd 

amended. 

Suhsecs. cg1 t,o 1j). Pub. L. 94-239 added subsecs. (g) to 

(j). Former subsec. 1g- 1 reclesignated 1[) and amended. 

EFFECTIVE DATE OF 2010 AMENDMENT 

Amenclnwnt by Pub. L. 111 203 effective on t he designated transfer tlate. see sec t.ion 1100H of Pub. L . 

111 203. set out as a note under section 552a of Ti t le 5, 

Government Organization and Employees. 

EFFECTIVE 

DATE OF 1976 AMENDMENT 

Amendment by P ub. L. 94 239 effective 

Ma r. 23, 1976, 

see section 708 of Pull. L . 90 -321. set o ut as nn Effective 

Date note under sect ion 1691 of this title. 

§ 1691f. Annual reports to Congress; contents 

Each year. t,he Bureau and the Attorney General shall. respec tively, make reports t,o the 

Congress concerning the administration of their 

functions un'1 er this sulJchapter, including such 

recommendations as the Bureau and the A Uorney General. respec tively, deem necessary or appropriate. In addition. each report of the Bureau 

shall include its assessment of the extent to 

which compliance with Lhe requirement.s of this 

sulJchapter is being achieved. and a summary of 

the enforcement actions taken by each of the 

agencies assi1med administ,rative enfor · .m .nt 

responsibilHies under section 1691c of lhis t.itle . 

e

d

y 

ig·nated transfer dat.e. s ee section 1100H of Pub. L. 

111-203, set out as a note under sect.Ion 552a of Title 5, 

Government Organization a nd Employees. 

EFFECTIVE DATE OF 1980 AMENDMJ,NT 

Anwmlment by Pub. L. 96-221 effec tive on expiration 

of t wo years and six months after 

Mar . 31. 1980, with all 

regulat.ions, forms. and clauses req uirecl to be prescribed to be promulgated at least one year prior to 

such effective elate, and allowing a ny creditor to comply with any amendments, in acconlnnce with the reg·ulat!ons, forms. and clauses prescribed by the Board 

prior t o such effec ive date, see section 625 of Pub. L. 

96-221. set out as a note under section 1602 of this title . 

EFFECTIVE DA'l'J, 

Section effective Mar. 23. 1976, see section 708 of Pub. 

L . 90 321, set out as a note under section 1691 of this 

!,it,le. 

SUBCHAPTER 

V- DEBT COLLEC'rION 

PRACTICES 

§ 1692. Congressional findings and declaration of 

purpose 

(a) Abusive practices 

There is abundant evidence of t he 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. ancl 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 

a busive 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 comm erce and throug·h 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 elimina t.e Et,busive 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 a ction to protect consumers against debt collection abuses. 
SHOHT Tn1,1,: 

This suhchapter known as the ''Fair Deht Collection 

Practices Act .. , see Short Title note set out under section 1601 of this tit.le. 

§ 1692a. Definitions 

As used in Lhis subchapter-

(1) The term '·Bureau" means the Bureau of 

Consumer Financial Protection. 

(2) 'I'he term •·communication" means the 

conveying of information regarding a debt directly or indirectly to any person t hi·ough any 

medium. 

(3) The term '" consume!'·• 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 tl'ansaction in which the 

money, property, insurance , or services whi ch 

are the subject of the transaction arn primarily for personal. family, or household purposes, whether or not such obligation has been 

reduced to judgment. 

(6) The term ··debL iollector" means any 

person who uses any ins

Lrumentality of interstate commerce or the mails in any business 

the principal purpose of which is the collection of any debts, or who reg·ularly collects or 

attempts to collect, directly or indirectly. 

debts owed or clue or asserted to be owed or 

due another. Notwithstanding the exclusion 

provided by clause (F) of the last sentence of 

this paragTaph. 

Lhe term includes any creditor 

who, in the process of collecting his own deb ls. 

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(6J of this ti

Lle, 

such term also incl udes any person who uses 

any instrum ntality of inte!'sta te commerce 

or t,he mails in any business the principal purpose of which is the enforcement of secul'ity 

interests. The term does not include-

(A) any officer 01· employee of a creditor 

while, in the name of the creditor. collecting· 

debts for such creditor; 

(BJ any person while acting as a deht collector fo1· another person, both of whom are 

related by common ownership Ol' affiliated 

(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 distribu t.ing 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 ar­

!'angement; (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 ancl his telephone 

number at such place, or his place of employment. 

(8) The term ''Stat,e•· means any State, territory, or possession of the United States, the 

District of Columbia, the Commonwealth of 

Puerto Rico, or any politi cal subdivision of 

any of the foregoing. 

Pub. L. 90-321, title VIII. §803, as added Pub. L, 

5---109, Sept, 20. 1977, 91 Stat. 875; amended Pub. 

. 99--361, July 9, 1986, 100 Stat. 768: Pub. L, 

11- 203, ti Ll e X, § 1089(2), July 21. 2010, 124 Stat, 

092. ) 

AMENDMENTS 

2010- Par. (1), Pub. L. 111 203 added par. (1) and struck 

ut. former par. tl) which read a.s follows: "The term 

'Commission· means the Federal Tracie Commission ... 

1986 Par. (6), Pub. L. 99 361 in provision preceding cl. 

Al substituted "clause tF)'' for "clause (G)". struck 

ut c l. (F J which excluded any attomey-at-law collectng- a debt as an at orney on behalf of and in the name 

f a clien t from term •·debt collector .. , and redesigated cl. tGJ as (FJ. 

EFFECTIVE DATE OF 2010 AMENDMENT 

Amendment, by Pub. L. 111--203 effect.lve on the clesgnate<l transfer date, see section UOOH of Pub. L. 

11-203, set out as a note under section 552a of Title 5, 

overnmen t Org-anization and Employees. 

EFFECTIVE DATE 

Section effective upon the expiration of six months 

fter Sept. 20. 1977, see section 819 of Pub. L. 90- 321. as 

dded by Pub, L, 95--109, set out as a note under section 

692 of this title. 

1692b. Acquisition of location information 

Any debt collector communica ting with any 

erson other than the consumer for the purpose 

c

9

L

1

2

o

(

o

i

o

n

i

1

G

a

a

1

§

p
p

p

Lhat 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 communicat ion effec 1,ed by the mails or telegram thaL 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 reg·ard 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. 

(Pub. L. 90- 321, title VIII, §804, as added Pub. L. 

95-109, Sept. 20. 1977. 91 Stat. 876. J 

Ef'F'IcC"l'l\'I•; DATIG 

Section effective upon the expiration of six months 

after Sept, 20, 1977, see section 819 of Pub. L. 90 321. as added by Puh. L. 95-109, set out as a note um!cer section 

1692 of this title. 

§ 1692c. Communication in connection with debt 

collection 

(a) Communication with the consumer generally 

Without the prior consent of the consumer 

g·iven tli 1·ectly to the debt collector or the express permission of a co urt 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 l,he consumer. In the absence of knowleclg·e of circumstances to the contrary, a debt collector shall assume that the 

convenient time for communicating with a consumer is after 8 o'clock antemericlian 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 debL and has knowl dge 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 t,he 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 

por

Ling agency if otherwise permitted by law, 

the creditor, the attorney of the creditor, or the 

a t torney 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 deb t collector shall not communicate 

further with the consumer with respect to such 

debt, except,--

(! l to advise the consumer that the debt collector's further efforts are being terminated; 

(2) to notify the consumer that the debt collector or creclitor 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 comple t e upon receipt. 

(d) "Consumer" defined 

For 

Lhe purpose of this section, the term "consumer" includes the consumer's spouse, parenL 

cif the consumer is a minor), guardian, executor, 

or administrator. 

(Pub. L. 90- 321, title VIII. §805, as added Pub. L. 

95-109, Sept. 20, 1977, 91 Stat. 876.) 

EI;'FllCTIVE DATIG 

Section effective upon the expiration of six months 

after Sept. 20, 1977, s e 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. 

§ 1692d. Harassment or abuse 

A debt collector may not engage in any conduct the natural consequence of which is to harass, oppre:ss. or abuse any person in connection 

wi th the collection of a debt. Without limiting 

the g·eneral 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 languag·e 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 168la(f) or 

168lb(3) 1 of this 

Litle. 

1 See Refe1·ences in Tex note below. 
REJ'f;RENCES IN TEXT cerning· a consumer. 

(lll disclose In the initial Sec tion 168lb(3) of this title. referred t o in par. 13>, The failure to 

was redesignated section 16811J\a lC 3l of this title by Puh. wri tten communication with the consumer 

L. 104 -208, div. A, title II, §2403\al\ ll. Sept. 30, 1996, 110 and, in addition. if the initial communication 

Stat. 3009- 430. wit h the consumer is oral, in that initial oral 

communication, that the debt coll et:tor is at­ EFFECTIVE DATE tempting to collect a debt and Urnt any inforSection effective upon the expiration of six months mation obtained will be used for that purpose, after Sept. 20, 1977. see section 819 of Pub. L. 90- 321, as and the failure to disclose in subsequent com­ added by Pub. L. 9S. 109, set out as a note under section munications that the communication is from 1692 of this title. 

a debt collector, exc pt that this paragraph 

§ 1692e. False or misleading representations shall not apply to a formal pleading made in 

connec tion with a leg·al action. A debt collec tor may not use any false. decep­ (12) The false representation or implication tive, or misleading representation or means in that accounts have been turned over to inno­ connection with the collect,ion of any debt. cent purchasers for value. Withou t limi t.ing the general application of the (13 ) The false representation or implication foregoing·, the following· conclm:t is a violation of that documents are legal process. this section: (14) The use of any business. company, or or­

(1) The false representation or implication ganization name other than the true name of that the debt collector is vouched for. bonded t he clebt collector's business. company. or or­ by, or affiliated wit,h the Unitecl States or any ganization. State. including the use of any badge, uni­ (15) The false representation or implication form. or facsimil e thereof. that documents are not legal process forms or (2) The false representation of- do not require action by the consumer. ( A) the charact er. amount. or legal status (16) The fa lse representation or implication of any debt: or 

Lhat. a debt collector operates or is employed (BJ any services rendered or compensation by a consumer reporting agency as defined by which may he lawfully received by any debt, sect ion 1681a(f) of this title. collector for the collection of a debt. cPub. L. 90-321 , title VIII. §807, as added Pub. L. (3) The false representation or implication 95--109. Sept. 20. 1977. 91 Stat. . 877: amended Pub. that any individual is an attorney or that any L. 104- 208, div. A. tit.le II, §2305(a). Sept. 30, 1996. communication is from an attorney. 110 Stat. 3009-425.) 

(4) The representation 01· implication that, 

nonpayment of any debt will result in the ar­ A~IENDM~~NTS 

rest 01· imprisonment of any person or the sei­ 1996- Par. (11). Pub. L. 104 208 amemlecl par. (11) g·en­ zure. garnishment. attachment, or sale of any erally. Prior to amendment. par. property or such (11) read as follows: wag·es of any person unless "Except as otherwise provided for communications to action is lawful ancl the debt collecto.1· or cred­ acquire location information under sec tion 1692b of this itor intends to take such action. tit l e. ,h failure to disclose clea rly in a ll communica­

(5J The threat to take any action that can­ tions 

ma de to collee a debt or to obtain information 

not legally be taken or that, is not inLendell to ahont a consumer. t hat the debt collector ls attempting· 

be taken. to collec t a debt and that any information obtained 

will be used fo1• purpose.'' (6) The false representation or implication that 

that a sale, referral. or other transfer of any 

interest in a debt shal consumer EFFECTIV~~ DATE I cause the OF 1996 AM END~rnNT 

to- Pub. L. 104~208. div, A, tit.le II. §2305(b). Sept. 30, 1996, 

(Ai lose any claim or defense to payment 110 St at. 3009 425. provided that: "The amendment 

of the clebt: or made by subsection ( a) [amending this sec tion] shall 

(Bl becomo subj ect to any practice prohib­ t ake effect 90 days art.er the da te of enactment of this 

Act [Sept. 30, 1996] and shall apply to all communica ­ ited by this subchapter. tions made after that date of enactment." 

(7) The false representation or implication 

that 

Lhe consumer committed any crime or EJi' l·'t-:C'l'IVI•: DA'l'f: 

other conduct in order t o disgrace the con­ Section effective upon t he expiration of six months su1ner. after Sept. 20. 1977, see section 819 of Pub. L . 90-321. as (8 ) Communicating or threatening to com­ added by Pub. L. 95--109. se t OLLI, a s a note under section 

municate to any person credit. information 1692 of this title. 
any person of a check or other paymenL in­ verification or judgment will be mailed to the strument postdatecl by more than five clays un­ consumer by the debt collector; and less such person is notified in writing of the (5) a statement that, upon the consumer's debt collector's intent to deposit such check writLen request within the thirty-day period, or instrument not more than ten nor less than the debt collector will provide the consumer three business days prior to such deposit. with the name and address of the orig·inal (3) The solicitation by a debt collector of creditor, if different from the current creditor. any postdated check or other postdated payment (b) Disputed debts instrument for the purpose of threatening· 01· instituting criminal prosecution. If the consumer notifies the debt collector in 

(4) Depositing or threatening to deposit any writing within the thirty-day period described 

postdated check or other postdated payment in subsection (aJ that the debt, or any portion 

instrument prior to the elate on such check or thereof, is disputed, or that the consumer reinstrument. quests the name and address of the original 

(5) Causing charges to be made to any person creditor, the debt collector shall cease collecfor communications by concealment of the tion of the debt, or any disputed portion thereof, 

true purpose of the communication. Such until 

Uie debt collector obtains verification of 

charges include, but are no t limi toe! to, collect the debt or a copy of a juclg'!nent. or the name 

telephone calls and telegram fees. ancl address of the original creditor, and a copy 

(6) Taking or threatening to take any non­ of such verification or judgment, or name and 

judicial action to effect dispossession or dis­ address of the original creditor. is mailed to the 

ablement of property if- consumer by the debt collector. Collection ac­

(A l there is no present right to possession tivities and communications that do not otherof the property claimed as collateral wise violate this subchapter may continue durthroug·h an enforceable security interest; ing Urn 30-day period referred to in subsect,ion 

(BJ Lliere is no present intention to take (a) unless the consumer has notified the debt 

possession of the property; or collector in writing that the debt, or any por­

(C) the property is exempt by law from tion of the debt, is disputed or that the consuch dispossession or disablement. sumer requests the name and address of the 

original creditor. Any collection activities and (7) Communicating· with a consumer regard­ communication during the 30-day period may ing a debt by post, card. not overshadow or be inconsistent with the dis­ (8) Using any language or symbol, other than closure of the consumer's right to dispute the the debt collector's address, on any envelope debt or request the name and address of the when communicating with a consumer by use original crecli tor. of the mails or by telegram, except that a debt 

collector may use his business name if such (c) Admission of liability 

name does not indicate that he is in the debt The failure of a consumer to dispute the valid­ collection business. ity of a debt under this section may not be con­

(Pub. L. 90- 321, title VIII. §808, as added Pub. L. strued by any court as an admission of liability 

95- 109, Sept. 20, 1977. 91 Stat. 879.J by the consumer. 

(d) Legal pleadings EFr"EC'TIVE DATE 

A communication in the form of a formal Sect. ion effective upon the expiration of six months pleading in a civil action shall not be treated as after Sept. 20, 1977. see section 819 of Pub. L. 90-321, as 

added hy Pull. L. 95 109, set out as a note under section an initial communication for purposes of sub1692 of this Litle. section (a). 

(e) Notice provisions § 1692g. Validation of debts 'I'he sending or delivery of any form or notice (a) Notice of debt; contents which does not rela te to the collection of a debt 

Within five days after the initial communica­ and is expressly required by tit le 26, title V of 

tion with a consumer in connection with the Gramm-Leach-Bliley Act [15 U.S.C. 6801 et seq.], 

collection of any debt, a debt collector shall, un­ or any provision of I<"ederal or State law relating 

less the following· information is contained in to notice of data security breach or privacy, or 

the initial communication or the consumer has any reg·ulation prescribed under any such provipaid the debt, send the consumer a written no­ sion of law. shall not be treated as an initial 

tice containing- communication in connection with debt collec­

(}) the amount. of the debt: tion for purposes of this section. 
AM

N

,

that a person other than the creditor of such 

2006 - Suhsec . (b). Pub. L. 109 351, §802( c). inserted at consumer is participating in the collection of or end "Coll ction activities and eommunications that do in an attempt to collect a debt such consumer not ot h er wise violate this subchapter 

may continue allegedly owes such cr editor, when in fact such during the 30-da y period r eferred to in subsection (a) person is not so participating·. unless the consu

m er has not ified the debt collector In 

writ ing that the delit, or any port.ion of the delJt, is dis­ <bl Any person who violates this section shall 

puted or that the consumer req uests the name and ad­ be liable to the same ex tent and in the same dress of the orig•inal creditor. Any collection a ct ivities manner as a debt collector is liable under sec­ and communicat.ion during the 30-day period may not tion 1692k of this 

LiLl e for failure t o comply with 

overshadow or be Inconsistent, with the disclosure of a provision of this subchapter. the consumer's right t.o dispute the debt or request the 

na me a nd address of t he original credit.or. " <Pub . L. 90- 321 , tit le VIII, §812. as a dded Pub. L. Subsee. Id ). Pub. L . 109-351. §802(a J. added subsec. ltll. 95-109, Sept. 20, 1977, 91 Stat. 880.) SulJsec. (e J. Pub. L . 109-351, §802/b), added sulJsec . (e l. 

EJ,'Ff:CTIVE DATE: 

EFFECTIVE DATE 

Section e ffective upon the expiration of six months Section applicable only with respect to deiJt,s for after Sept. 20, 1977. see section 819 of Pub. L. 90--321, as which t.he init ia l attempt to collec t occ

m s after the ef­ added by Pub. L. 95-109, set ou t as a note umler section fe ctive date of this subchapter. 

which t akPs effe ct uprm 1692 of this title. the expiration of six months after Sept. 20, 1977, see 

section 819 of P ub. L . 90 -321. as added by Pub. L . 95- 109, § 1692k. Civil liability set out as a note under section 1692 of this titl e. 

(a) Amount of damages 

§ 1692h. Multiple debts Except as otherwise provided by this section, 

If any consumer owes multiple debts and any debt collector who fails to comply wiLh any 

ma kes any single payment to any debt coll ector provision of this subcha pter with respect to any 

with respect, to such debts, such debt collector person is lia ble to such person in an amount 

may not- apply such payment to any debt which equa l to the sum of- is disputed by the consumer and, where applica­ ( l l any actual dam age sustained hy such per­ ble, shall apply such pay

ment in aecordance son as a result of such failure; 

wit,h the consumer's directions. (2)(AJ in t.he case of any action by an indi­

<Pub . L. 90-321. tit le VIII, §810. as added Pub. L. vidual, such additional damag·es as the court 

95-109, Sept. 20. 1977, 91 Stat. 880.) 

m ay allo

w, but no t exceeding $1,000; or 

(B) in the case of a class action. (iJ such EFFECTIVE DATE amount for each named plaintiff as could be 

Section e ffe ctive upon the expiration of six months reeovered under subparagTaph (A), and (ii) after Sept. 20, 1977. see section 819 of Pub. L. 90 -321. as such amount as the court may a llow for all added by Pub. L. 95 109. set out as a note under section other class members. without regarcl to a min­ 1692 of this title. imum individual r ecovery, not to exceed the 

§ 1692i. Legal actions by debt collectors lesser of $500,000 or 1 per centum of the net 

worth of the debt collector; and (a) Venue (3 ) in t he case of a ny successful ac tion to en­ Any debt. coll ec t or who brings a n:v leg-al action force t he fore going l iabili ty, the costs of the 

on a deb ag-ainst any consumer shall- action, together wit,h a reasonabl e attorney's (!) in the case of an action t o enforce an in­ fee as determined by the court. On a finding by terest in real property securing the consum­ the court that an action under this section er's obligation. bring· such action only in a ju­ was brought in bad fai th and for the purpose of di cial district, or similar legal entity in which harassment. the court ma y award to t he de­ such r eal propert y is locatecl: or fendant attorney's fees reasonable in r ela tion (2> in the case of an action not described in to the work expended and costs. paragraph (1). bring such action only in t he judic ial district or similar legal entity- (b) Factors considered by court 

<A) in which such consumer sig11ed the In determining the amount of lia bility in any 

contract sued upon; or action under subsection (aJ, the court shall con­ (B) in which such consumer resides at the sider, among other relevant factorscommence

men t of t he action. ( ! ) in any individua l action under subsection (b) Authorization of actions (aJ(2J(

AJ, the frequency and persistence of nonNothing in this subchapter shall be construed complia nce by the debt collector, the nature 

Lo au thori ze the bringing of legal actions by of such noncompliance , and the extent to 

deb t eollectors. which such noncompliance was intentional: 01· 
that the violation was not intentional and re­ (bl Applicable provisions of law sulted fl'Om a bona fide error notwithstanding Subject to subtitle B of the Consumer Finan­ the maintenance of procedures reasonably cial Protection Act of 2010. compliance with any adapted to avoid any such error. requirements imposed under this subchapter (d) Jurisdiction shall he enforced underJ section 8 of the Federal Deposit Insur­ An aetion to enforce a ny liability creat ecl by (1 

ance 

Act [12 U.S.C. 1818], by the appropriate this subchapter may be broug·ht in any appro­ Federal banking agency, as defined in section priate United S tates distri ct court withou t re­ 3(q) of the Federal Deposit Insurance Act tl2 g·ard to the amount in controversy, or in any U.S.C. 1813(q)). with respect to- other com•(, of competent jurisdiction. within (Al national hanks. Fedeml savings asso­ one year from the date on which the violation ciations, and Federal branches and Federal OCCLll'S. agencies of foreign banks; (el Advisory opinions of Bureau (BJ member banks of the Federal Reserve 

No provision of this section imposing any li­ System (other than national banks). of foreign banks ability omittecl in branches and agencies shall apply to any act done or (other than 

Federal branches, Federal agen­ good fa ith in conformity with any advisory cies, and insured State branches of foreign opinion of the Bureau, notwithstanding that banks). commercial lending companies after such act or omission has occurred. such owned or controlled by foreign banks, and opinion is amended. rescinded. or determined by ot·"·anizations operating under section 25 or judicial or ot..her authority to be invalid for any 25A of the Federal Reserve Act [12 U.S.C. 601 reason. et seq .. 611 et seq.]; ancl 

cPub. L. 90- 321, title VIII, § 813, as added Pub. L. (CJ banks and State savings associations 

95- 109. Sept. 20, 1977, 91 Stat. 881; amended Pub. insured by the Federal Deposit Insurance L . 111- 203, title X. §1089(1), July 21, 2010. 124 Corporation (other than members of the 

Stat. 2092.J Federal 

Reserve System), and insured State 

branches of foreign banks; AMENDMENTS 

(2) the Federal Credit. Union Act [12 U.S.C. 2010- -Sulmec. <e). Pub. L. 111- 203 subst,ituLed ·'Bu- 1751 et seq.], by the Administrator of the Na­ 1·eau•· fo1· "Commission". tional Credit Union Administration with reEFFECTI

VE DATE OF 2010 A);IENDMENT spect to any Federal credit union; 

(3) subtitle IV of title 49, by Lhe Secretary of Amernlment by Ptib. L . 111 203 effective on the des­ respect to a ll carriers ignated transfer date. see sec t.Ion 1100H of Pub. L. Transportation, with 

111-203. set out as a note under section 552a of Title 5, subject. to the jurisdiction of the Surface 

Government Organization and Employees. Transportation Board; (4) part A of subtitle VII of title 49, by the EFFECTIVE DATE Secretary of Transportation with respect to 

Section effective upon the expiration of six months any air carrier or any foreign air carrier subafter Sept .. 20. 1977, see seetion 819 of Pub. L . 90- 321. as ject to that part; 

added by Pub. L. 95 109. set out a~ a note under section (5) the Packers and Stockyards Act, 1921 [7 

1692 of this ti lie . U.S.C. 181 et seq.] (except as provided in secLion 406 of that 

Act [7 

U.S.C. 226. 227]), by the § 16921. Administrative enforcement Secre tary of Agri culture with respect to any 

Federal Trade Commission activiti es subject to that Act; and (a) (6) subtitle E of the Consumer Financial The Federal Trade Commission shall be au­ P1·otection Act of 2010 [12 

U.S.C. 5561 et seq.], thorized to enforce compliance with this sub­ by the Bureau. with respect to any person sub­ chapter. except to the extent that enforcement ject to this subchapter. of the requirements imposecl under this sub­ The terms used in paragraph (1) that are no t de­ chapter is specifically committed l,o another subchapter Government ag·ency under any of parag-raphs (1) fined in this or ot.herwise defined in section 3(s) of the Federal Deposit Insurance Act through (5) of subsection tb). subject to subtitle (12 U.S .C. 1813(sJJ shall have the meaning given B of the Consumer Financial Protection Act of to them in section l(bJ of the International 2010 [12 U .S.C. 5511 et seq .]. !<'or purpose of the Bank ing Act of 1978 (12 

U.S.C. 3101 ). exercise by the Fecleral Trade Commission of its 

powers functions and powers under the Federal Trade (c) Agency 

Commission Act (15 U.S.C. 11 et. seq.), a viola­ For the purpose of the exercise by any agency 

tion of this subchapter shall be deemed an un- referred to in subsection (b) of its powers under 
shall be deemed an unfair or deceptive act or practice 

in violation of that Act. All of the Ctrnc ions and powers 

of the Commission under the Federal Trade Commission 

Act are available to the Commission to enforce 

compliance by any person with this subchapter, irres pective of whether that person is eng·aged in commerc e or meets any other jurisdictional tests in the 

Federa l Trade Commission 

Ac t, 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." 

Subsec. lb). Pub. L. 111-203, §108913)cB)(i), substituted 

" Subject to subtitle B of the Consumer Financial Protection Act of 2010, compliance " for "Compl!ance" in 

introductory provisions. 

Subsec. lbHl). Pub. L. 111- 203, § 1089i3HB)tii), added 

par. tl) and struck out former par. tl ) which read as follows: " section 8 of the Federal Deposit Insurance Act, 

in the case of-

"IA) national banks, aml Federal branches and Federal agencies of foreign banks, by the Office of the 

Comptroller of the Currency: ' ·<Bl member banks of t he F ,•deral 

Reser ve System 

1o ther than nationa l banks), branches and agencies of 

foreign IJanks (other than Federal branches. Federal 

agencies. and insured State branches of foreign 

banks). commercial lending- companies owned or controlled by foreign banks, a nd org·anizat ions operating 

1tnder section 25 01· 25(a) of the Federal Reserve Act, 

by the Board of Governors of the Federal Reserve 

System: and " (C) banks insured by the Federal Deposit Insurance Corporation (ot,her than members of the Felleral 

Reserve System) and insurnd State branches of foreign banks. by the Board of Directors of the Federal 

Deposit. Insurance Corporation;". 

Subsec. 1b J<2 J to (6J. Pub. 

L. 111-203, 

§1089<3)(Bl\ii) tvi), added par. (6). redesignated forme r 

pars. 13J t o 16) as (2) to (5 ), respectively, and struck out 

former par. c2) which read as follows: " section 8 of the 

Federal Deposit Insurance Act, by the Director of the 

Office of Thrift Supervision, in the case of a savings associ.at.ion the depos.its of whi ch are insured hy the Federal Deposit Insurance Corpora l-ion: ". 

Subsec. (ell. Pub. L. 111- 203. §1089(4), substituted " Except as provided in section 1029/a) of the Consumer Financial Protection Act. of 2010, the Bun•a u may prescribe rules with respect to the collection of debts IJ,v 

debt collec tors. as defined in t.his subchapter" for "Neither the Commission nor any other ag·ency referred to 

in subsection tb) of this section may promulgate trade 

regulation rules or other reg·ulations with r espect to 

t he collection of debts by debt collec tors a s defined in 

this subchapter". See Codification note above. 

1995- Subsec. (b)/4). Pub. L. 104--88 substituted " Secretary of Transportation, with respect t.o all carriers 

subjec t, to the jurisdict ion of the Surface Transportation Board" for "InterstaLe Commerce Commission 

with respect to any common canier subject to those 

Acts" . 

1992- Subsec. (b)(l )!CJ. Pub. L. 102 -550 substituted 

semicolon for period at end. 

1991- Subs ec. (b). Pub. L. 102--242, § 212(e )C2), inserted 

at end "The terms used in paragraph (1) that are no t 

defined in this subchapter or otherwise defined in sect.ion 3/s) of the F t1 ~1·a l Deposit Insurance Act (12 U.S.C. 

Except as provided in sec tion 1029\a) of t he 

Consumer Financial Protection Act of 2010 [12 

U.S .C. 5519<a)]. t he Bureau may prescribe rules 

with respect to the collection of debts by debt 

collectors, as defined in this subchapter. 

(Pub. L. 90-321, t itle VIII. §814, as added Pub. L. 

95- 109. Sept. 20. 1977. 91 Stat. 881: amended Pub. 

L. 98-443. §9(n), Oct. 4, 1984, 98 Stat. 1708; Pub. L. 

101- 73, Lit! VII. §744(n), Aug·. 9, 1989, 103 Stat. 

440; Pub. 

L . 102- 242, title II, §212(e). Dec. 19, 1991, 

105 Stat. 2301; Pub. L . 102- 550, t,it,Je XVI, 

§ 1604(a)(8), Oct. 28. 1992, 106 Stat . 4082; Pub. L. 

104-88, title III. § 316, Dec. 29, 1995. 109 Stat. 949; 

Pub. L. 111- 203. Litle X, § 1089(3). (4). July 21, 2010, 

124 Stat. 2092. 2093.J 

REFERENCES [N TEXT 

The Consumer Financial Protection Ac t of 2010, re ­

ferred to in subsecs. (a) and <IJ). is title X of Pub. L . 

111-203 , July 21, 2010. 124 Sta t. 1955. Subtitles B 

1§§1021 1029A ) a nd E 1§§1051 -1058J of the 

Ac t are c la sRifi ed generally to parts B l§ 5511 et seq. J and E t§ 5561 et. 

seq.). respeetively, of subchapter V of chapter 53 of 

Title 12, Banks and Banking·. For complete classification of subti ties B and E to the Code. see Tables. 

The Feileral Trade Commission 

Act, r eferr ed t.o in 

subsec. <a ), is a c t SepL. 26, 1914. eh. 311 , 38 Sta . 717. 

which is classifiecl g·enerally t o subchapt er I <§41 et 

seq.) of chapte r 2 of this title. For complete classificat ion of this 

Ac t to t he Code, see section 58 of this title 

and Tables. 

Sections 25 and 25A of the Federal Reserve 

Ac t. r eferred to in s ubs ec . 1b )l l )1B), are classified to subchapters I t§601 et seq .) and II 1§611 et seq. ), r espeutively. of chapter 6 of Title 12. Banks and Banking. 

The Federal Credit Union 

Act,, referred to in subsec . 

(b)<2). is ac t June 26. 1934, ch. 750. 48 Stat. 1216, which 

is classified generally to chapter 14 !§1751 et seq.J of 

Title 12. For complete classificat ion of this Act to the 

Code. see section 1751 of Tit.le 12 and Tables. 

The Paekers and Stockyards 

Ac l. 1921, referred t o in 

subsec. <IJ)(5J. ls a ct Aug. 15, 1921. ch . 64. 42 Sta s. 159. 

which is classified irenerally to chapter 9 <§ 181 et seq.) 

of Tit.le 7, Ag-riculture . For complete classification of 

this 

Act t o t he Code, see section 181 of TiUe 7 a nd 

Tables. 

COIJIB'fCA'!'[()N 

In suhs,Jc. lbll3l. "subtitle IV of Lit,!e 49· • substituted 

for "the 

Aets t o rep 1late commt> rc e" on authori ty of 

Pub. L. 95 473. §3< bl. Oc t. 17, 1978, 92 Sta t. 1466. the first 

section of which emicted subtit,le IV of Title 49. Transportation. 

In subsec . lh J(4J, "part A of s ulit.ltle VII or t.itle 49" 

substituted for " the Federal Aviation Act of 1958 [49 

App. U.S.C. 1301 et seq.]" and "t,hat part·· substituted 

for "that Act " on authority of Pub. L. 103 272, § 61h), 

Julv 5, 1994, 108 Stat. 1378. the first s ection of which ena l't~d subtitles II. III, and V t o X of Title 49. 

Section 1089<4) of Pub. L. 111 203, which directed 

amendment "in s uhsection <cl )" of the Fair Debt CollecLion Prac tices Act. was execut,ed in subsec. 1 d l of this 

section, which is section 814 of the Act, to re f\ Pet the 
by the Board of Directors of U1e Federal Deposit Insurance Corporat ion; " . REFERENCES IN TEXT 

1989- Subsec. (b)(2). Pub. L. 101 73 amended par. <2) The effective elate of this subchapter, referred to in 

generally . Prior to amentlment, par. c2) t'ead as follows: subsec . (al , is the date occurring on expiration of six ··section 5(dJ of the Home Owners Loan Act of 1933, sec­ months a fter Sept. 20, 1977. See section 819 of Pub. L . 

tion 407 of the National Housing Act, and sections 6(1) 90- 321 , set out as an Effective Date note under section 

and 17 of the F edora! Home Loan Bank Act, by the Fed­ 1692 of this title. 

eral Home Loan Bank Board 1acting directly or 

t!u·oug-h the Fecleral Savings and Loan Insurance Cor­ A:1,!ENDMENTS 

poration). in the case of any insLitution subject. to any 2010-.Puh . L. 111- 203 substituted "Bureau" for ·'Comof those provisions;·· . mission•· wherever appearing. 1984- Subsec. (lJJ<5J. Pub. L. 98 443 substiLuted ·'Secretary of Tra nsport.al.ion" for "Civil AeronauLi cs EFFECTIVE DATE OF 2010 AMENDMENT 

Board" . Amendment by Pub. L. 111- 203 effective on the desEFFECTIVE DATE OF 2010 AMENDMENT ignated transfer dat,e, see section 1100H of Pub. L . 

111- 203, set out as a note uml~1· section 552a of Title 5, Amendment by Pub. L. 111 203 effective on the des­ Government Organization and Employees. ignated transfer date, see section 1100H of Pub. L. 

111 203, set out as a note urnl er section 552a of Title 5. EFFECTIVE DATE 

GovernmenL Organi~aLion and Employees. Section effec tive upon the expiration of six months 

EFFECTIVE DATE OF 1995 AMENDMENT after Sept.. 20, 1977, see section 819 of Pub. L. 90-321, as 

added by Pub. L. 95109, set out as a note under section AmenclmenL by Pub. L. 104• 88 effective J a n. 1. 1996. 1692 of this t itle. 

see sel'Lion 2 of Puh. L. 104- 88. set out as an Effe cLive 

Date note under section 1301 of Ti tie 49, Tra nspor­ § 1692n. Relation to State laws tation. 

This subchapter does not annul, alter, or af­ E FPECTIVF; DATE 01'' 1992 AMI•:NDMEN'l' fect, or exempt any person subject to the provi­ Amendment by Pub. L. 102- 550 effective as if inc ludt'<i sions of this subchapter from complying with in the Federal Deposit Insurance Corporation Improve­ the laws of any State with respect to debt col­ ment Act of 1991. Pub. L. 102- 242, as of Dec. 19, 1991. see lection practices. except to the extent that section 1609(a) of Pub. L. 102 .. 550, set out a.s a note provision under section 191 of 'l'itle 12. Banks a.nd Banking. those laws are inconsistent with any of this subchapter, and then only to the extent 

EFl•'ECT!VE DATE OF 1984 AMENDMENT of the inconsistency. For purposes of this secAmendment by Pub. L. 98--443 effe ctive Jan. 1. 1985. tion, a State Jaw is not inconsistent with this 

see section 9< v J of Pub. L. 98- 443. set out as a note under subchapter if the protect,ion such law affords 

section 5314 of Title 5, Government Organization and any consumer is g-reater than the protec l.ion Employees. provided by this subchapter. 

EFFECTIVE DATE (Pub. L. 90-321. title VIII, § 816. as added Pub. L. 

Section effe c l.l ve upon the expiration of' six months 95-109, Sept. 20. 1977, 91 Stat. 883.) 

after Sept. 20. 1977, see section 819 of Pub. L. 90 321, as 

added I.Jy Pub. L. 95- 109. set out as a note under sec tion El'FEC'l'IVE DATE 

1692 of this t itle. Section effective upon the expira tion of six months 

after 'ept. 20. 1977, see section 819 of Pub. L. 90-321. as TRAN,;f,'ER OF FUNC"!'IONS added by Pub. L. 95-109, set out as a note under section 

Functions vestett in Administrator of Nat. ional Credit 1692 of this title. 

Union Administration transferred and vested in National Credit Union Administralion Board pursuant to § 16920. Exemption for State regulation 

section 1752a of Title 12. Banks and Banking. The Bureau shall by regulation exempt from 

§ 1692m. Reports to Congress by the Bureau; the requirements of this s ubchapter any class of 

views of other Federal agencies debt collection practices within any State if the 

Bureau determines that under the law of that (a) NoL later than one year after the effective State that class of debt eollec

Lion pracLices is date of this subchapLer and aL one-year intervals subj ct to requirements substantially similar to thereafter, the Bureau shall make reports to the those imposed by this subchapter, and that Congress concerning the administra tion of 1 ts there is adequate p1·ovision for enforcement. functions uncler Lhis suhchapter, including such 

recommendations as the Bureau deems nec­ (Pub. L. 90-321. ti Lle VIII, §817. as added Pub. 

L . 

essary or appropriate . In addition, each report of 95-109 , Sept. 20, 1977, 91 Stat. 883; amended Pub. 

the Bureau shall include its assessment, of the 

L . 111- 203, title X, § 1089( 1 l, July 21, 2010, 124 

ex Lent to which ·ornpliance with Lhis sub- Stat. 2092.) 
y 

g

y 

1692 of this title . crime report with the appropriate law 

enforcement agency; and § 1692p. Exception for certain bad check enforce­ (Ill) if the alleged offender notifies the ment programs operated by private entities private entity or the district attorney in 

(a) In general writing·, not later than 30 days after 

(1) Treatment of certain private entities being· contacted for the first time pursuant to clause (iv), that there is a dispute Subject to parag-raph (2). a private entity pursuant to this subsection, before fur­ shall be excluded from the definition of a de lJ\, ther restitution efforts are pursued. the collector. pursuant to the exception provided district attorney or an employee of the in section 1692a(6) of this title, with respect to district attorney authorized to make the operation by the entity of a program de­ such a determination makes a deter­ scribed in paragraph (2HA) under a contract mination that there is probable cause to described in parag-raph (2)(B). believe that a crime has been commit­ (2) Conditions of applicability ted; and 

Paragraph (1) shall apply if- (Vi) charges only fees in connection with < A) a State or distriet, attorney estab­ services under the contract that have been lishes. within the jurisdiction of such State authorized by the contract with the State or district attorney and with respect to al­ or district attorney. leg·ed bad check violations that do not involve ( a (b) a check described in subsection b ), Certain checks excluded 

pretrial diversion program for alleged bad A check is described in this subsection if the 

check offenders who agTee to participate vol­ check involves. or is subsequently found to inuntarily in such program to avoid criminal volveprosecution; (1) a postdated check presented in connec­

(BJ a private entity. that is subject to an tion wi th a payday loan. or other similar 

administrative support services contract transaction, where the payee of the check 

with a State or distl'ict attorney and oper­ knew that the issuer had insufficient funds at 

ates under t,he direction, supervision, and the time the check was made. drawn. or delivcontrol of such State or district attorney. erecl: 

operates the pret.rial diversion prog-ram de­ <2) a stop payment order where the issuer 

scribed in subparagraph (AJ; and acted in good faith and with reasonable cause (C) in the co urse of performing duties dele­ in stopping payment on the check; 

gated to it by a State or district attorney (3) a check dishonored because of an adjustunder the contract. the private entity re­ ment to the issuer's account by the financial 

ferred to in subparag-raph (B)- institution holding· such account witho ut pro­

( i) complies with the penal laws of the viding no tice to the person at the time the 

State: check was made, drawn, or delivered; 

(ii) conforms with the terms of the con­ (4) a check for partial payment of a debt 

tract and directives of the State or district where the payee had previously accepted paratto1·ney: tial payment for such debt: (iii) does not exernise independent pros­ (5) a check issued by a person who was not. 

ecutorial discretion; competent. or was not of legal age, to enter 

(iv> contacts any alleged offender re­ into a legal contrnctual obligation at the time 

ferred to in subparagraph (A) for purposes the check was made. drawn, or delivered; or 

of participating· in a program referred to in (6) a check issued to pay an obligation arissuch paragraph- ing from a transaction that was illegal in the 

(!) on ly as a result of any determina­ jurisdiction of the State or district attorney 

tion by the State or district attorney at the time the check was made. drawn. or dethat probahl e cause of a bad check viola­ livered. 

tion under State penal law exists. and (c) Definitions 

that contact with the alleged offender For purposes of this section, the following for purposes of part,icipation in the pro­ definitions shall apply: grnm is appropriate; and (1) State or district attorney (II) the a ll eg·ed offender has failed to 

pay the bad check after demand for pay­ The term ·'State or district attorney" means 

ment, pm·suant to St.ate law, is made for the chief electec\ or appointed prosecuting atpayment of the check amount; torney in a dist.riot, county (as defined in sec(2) Check tion 1601 of this title. 

The term "check " has the same 

meaning as § 1693a. Definitions 

in section 5002<6) of title 12. As used in this subchapter- (3) Bad check violation (1) the term "accepted card or other means 

The term "bad check violation" means a of access' ' means a card. code, or other means 

violation of the applicable State criminal law of access to a consumer's account for the purrela ting to the writing of dishonored checks. pose of initiating electronic fund transfers 

when the person to whom such card or other !Pub. L. 90-321. title VIII, § 818. as added Pub. L. means of access was issued has requested and 109-351. title VIII, §801(al(2), Oct. 13. 2006. 120 received or has sig•ned or has used, or author­ Stat. 2004.) ized another to use. such card or other means 

SUBCHAPTER VI- ELECTRONIC l<'UND of access for the purpose of transferring 

TRANSFERS money between accounts or obtaining money, 

property. labor, or services; 

§ 1693. Congressional findings and declaration of (2) the term •·account" means a demand depurpose posit. savings deposit, or other asset account 

(other than an occasiona,l or incidental credit (a) Rights and liabilities undefined balance in an open end credit plan as defined The Congress finds that the use of electronic in section 1602(i) 1 of this title). as described in 

systems to transfer funds provides the potential regulations of the Bm·eau , established pri­ for substantial benefits t o consumers. However, marily for personal, family, or household purdue to the unique characteristics of such sys­ poses, but such term does not include an actems. the application of existing consumer pro­ count held by a financial institution pursuant tection legislation is unclear, leaving the rights to a bona fide trust agreement: a nd liabilities of consumers, financial ins ti t u­ (4) 2 the term " Board " means the Board of 

tions, and intermediaries in electronic funcl Governors of the Federal 

Reserve System; transfers undefined. (4) 2 the term " Bureau'' means the Bureau of 

Consumer Financial Protection: (b) Purposes <5) the term ' 'business day" means any day It is the purpose of this subchapter to provide on which the offices of the consumer's finana basic framework establishing the rights, li­ cial institution involved in an electrnnic fund 

abilities. and responsibilities of participants in transfer are open to the public for carrying on electronic fund and remi t,tance transfer sys­ substantially all of its business fun ctions; tems. '.rhe prima ry objective of this subchapt,er. (6) the term ' ·1.:onsumer' ' means a natural however. is the provision of individual consumer person: rights. (7J the term '·electronic fund transfer" 

than a <Pub. L. 90-321, title IX, §902. as added Pub. L. means any transfer of funds, other 

95- 630, title XX, §2001. Nov. 10, 1978. 92 Stat. 3728; transaction originat ed by check, draft, or 

amended Pub. 

L. 111- 203. Litle X, § 1073(a)(l), July similar paper instrument, which is initiated terminal, telephonic in­ 21, 2010. 124 Stat. 2060. l through an electronic 

strument. or computer or magnetic tape so as 

AMENDMENTS to order. instruct, or authorize a financial in2010-- Subsec. <bJ. Pub. 

L. 111 203 inserted "and remit­ stitution to debit or credit a n account. Such t,ance" afte1· ··elect,ronic fund ' '. erm includes. but is not limited to. point-ofsal e transfers. automated teller machine EFFECTIVE DATIi Ol•' 2010 AMENDMr:NT transactions, direct deposits or withdrawals of 

Amendment lly Pub. L. 111 203 effective 1 day after funds. and transfers init iated by telephone. 

,July 21. 2010. except as otherwise provided, see sect.ion Such term does not inclucle4 of Pub. L. 111-203. set out a.s a.n grrective Date note (A) any check g·uarantee or authorization under section 5301 of Title 12. Banks ancl Banking. service which does not directly result in a 

gF'FE:CTIVE DAT" debit or credit to a consumer's account: 3 

(BJ any transfer of funds, other than those Pub. L. 90--321, tit.le IX. §923. formerly §921. as added processed by automated clearinghouse, made by Pub. L . 95 630, ti.tie XX. §2001. Nov . 10, 1978. 92 Stat. 

3741. renumbered §922. Pub. L . 111 -24, titJ,, IV. §401(1), 

May 22. 2009, 123 Stat. 1751: renumbered §923, Pub. L. 1 See References in Tex t note below. 

111 -203, tiUe 

X. § 1073!a)/3J. July 21, 2010, 124 Stat. 2060, 2 s0 in original. Thea·e n.re two pars. designated "(1 )' ' !\ncl no 

provided that: "This t.itle [enacting this subchapter] par. (3l. 

takes effect upon t he expiration of eighteen months :,so in Ol'iginn.l. The co1 on probably should b~ a semicolon.