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105TH CONGRESS

1ST SESSION H. R. 837

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

IN THE HOUSE OF REPRESENTATIVES

FEBRUARY 26, 1997

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 1997’’.

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

8 (a) NOTICE OF ASSUMPTION OF VALIDITY OF

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

10 Practices Act (15 U.S.C. 1692g(a)(3)) is amended—
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1 (1) by inserting ‘‘appearing in type at least as

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

3 (2) by striking ‘‘disputes’’ and inserting ‘‘noti4 fies the debt collector in writing that’’; and

5 (3) by inserting ‘‘is disputed,’’ after ‘‘any por6 tion thereof,’’.

7 (b) COLLECTION DURING 30-DAY PERIOD.—Section

8 809 of the Fair Debt Collection Practices Act (15 U.S.C.

9 1692g) is amended by adding at the end the following new

10 subsection:

11 ‘‘(d) COLLECTION ATTEMPTS DURING 30-DAY PE12 RIOD.—Except as provided in subsection (b), a debt collec13 tor may attempt to collect a debt during the 30-day period

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

15 be made during such period.’’.

16 (c) RELATION TO STATE LAW.—Section 816 of the

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

18 amended—

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

20 IN GENERAL.—This title’’; and

21 (2) by adding at the end the following new sub22 sections:

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

24 LAW VIOLATIONS.—This title shall not be construed as
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1 providing a remedy for any violation of the law of any

2 State with respect to debt collection practices.

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

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

5 establishing any liability or penalty for a violation of the

6 law of any State unless the conduct which constitutes a

7 violation of the law of such State also constitutes a viola8 tion of any requirement of this title or regulations pre9 scribed pursuant to this title.’’.

10 (d) ACQUISITION OF INFORMATION.—Section 804 of

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

12 is amended—

13 (1) by striking ‘‘Any debt collector’’ and insert14 ing ‘‘(a) IN GENERAL.—Any debt collector’’; and

15 (2) by adding at the end the following new sub16 section:

17 ‘‘(b) COMMUNICATION WITH PERSONS OTHER THAN

18 ATTORNEYS FOR CERTAIN PURPOSES.—Notwithstanding

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

20 consumer is represented by an attorney may communicate

21 with any person other than such attorney for purposes of

22 obtaining location, income, asset, or credit information

23 about the consumer if the attorney refuses to provide such

24 information to the debt collector and the debt collector has

25 otherwise complied with subsection (a)(6).’’.
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1 (e) SAFE HARBOR FOR UNINTENTIONAL VIOLATIONS

2 RESULTING FROM USE OF APPROVED FORMS.—Section

3 813(c) of the Fair Debt Collection Practices Act (15

4 U.S.C. 1692k(c)) is amended by inserting before the pe5 riod at the end ‘‘or resulted from the use of a form of

6 written communication which was approved by any State

7 or Federal agency which regulates debt collectors’’.

8 (f) EXEMPTION OF FEDERAL OR STATE EMPLOYEES

9 LIMITED TO COLLECTION IN THE COURSE OF EMPLOY10 MENT.—Section 803(6) of the Fair Debt Collection Prac11 tices Act (15 U.S.C. 1692a(6)) is amended by inserting

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

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

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

15 (g) ‘‘REASONABLE PERSON’’ STANDARD.—Section

16 813 of the Fair Debt Collection Practices Act (15 U.S.C.

17 1692k) is amended by adding at the end the following new

18 subsection:

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

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

21 failed to comply with any provision of this title with re22 spect to any person, the court shall consider the effect of

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

24 person.’’.

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