‘‘(2) DEBT COLLECTOR.—The term ‘debt col-
lector’ includes any person described in subpara-
graphs (A), (B), (C), (D), (E), or (F) of section 
803(6). 
‘‘(3) IDENTITY
THEFT.—The term ‘identity 
theft’ means a fraud committed using another per-
son’s identifying information, subject to such further 
definition as the Board and the Federal Trade Com-
mission may prescribe, jointly, by regulation. 
‘‘(4) POLICE REPORT.—The term ‘police report’ 
means a copy of any official valid report filed by a 
person with any appropriate Federal, State, or local 
government law enforcement agency, or any com-
parable official government document that the 
Board and the Federal Trade Commission shall 
jointly prescribe in regulations, that is subject to a 
criminal penalty for false statements.’’. 
(b) STATE
ENFORCEMENT
AUTHORITY.—Section 
814 of the Fair Debt Collection Practices Act (15 U.S.C. 
1692l) is amended by adding at the end the following new 
subsection: 
‘‘(e) STATE ACTION FOR VIOLATIONS.—
‘‘(1) AUTHORITY OF STATES.—In addition to 
such other remedies as are provided under State 
law, whenever the chief law enforcement officer of a
State, or an official or agency designated by a State, 
has reason to believe that any person has violated or 
is violating this title, the State—
‘‘(A) may bring an action to enjoin such 
violation; 
‘‘(B) may bring an action on behalf of its 
residents to recover damages for which the per-
son is liable to such residents under section 813 
as a result of the violation; and 
‘‘(C) in the case of any successful action 
under subparagraph (A) or (B), shall be award-
ed the costs of the action and reasonable attor-
ney fees as determined by the court. 
‘‘(2) RIGHTS OF FEDERAL AGENCIES.—
‘‘(A) NOTICE TO FEDERAL AGENCY.—The 
State shall serve prior written notice of any civil 
action under paragraph (1) upon the Federal
agency responsible for enforcement under this 
section and provide such agency with a copy of 
its complaint, except in any case where such 
prior notice is not feasible, in which case the 
State shall serve such notice immediately upon 
instituting such action.
‘‘(B) INTERVENTION.—The Federal agen-
cy responsible for enforcement under this sec-
tion shall have the right—
‘‘(i) to intervene in any action re-
ferred to in subparagraph (A); 
‘‘(ii) upon so intervening, to be heard 
on all matters arising in the action; and 
‘‘(iii) to file petitions for appeal. 
‘‘(3) INVESTIGATORY
POWERS.—For purposes 
of bringing any action under this subsection, no pro-
vision of this subsection shall construed as pre-
venting the chief law enforcement officer, or an offi-
cial or agency designated by a State, from exercising 
the powers conferred on the chief law enforcement 
officer or such official by the laws of such State to 
conduct investigations or to administer oaths or af-
firmations or to compel the attendance of witnesses 
or the production of documentary and other evi-
dence. 
‘‘(4) LIMITATION.—Whenever the Federal agen-
cy responsible for enforcement under this section has 
instituted a civil action for violation of this title, no 
State may, during the pendency of such action, 
bring an action under this section against any de-
fendant named in the complaint of such agency for
any violation of this title that is alleged in that com-
plaint.’’. 
(c) TECHNICAL AND CONFORMING AMENDMENT.—
Section 808 of the Fair Debt Collection Practices Act (15 
U.S.C. 1692f) is amended by adding at the end the fol-
lowing new paragraphs: 
‘‘(9) Taking any action, or attempting to take 
any action, directly or indirectly, against any person 
to collect on any debt after the debt collector knows 
or has reason to believe that such person may be the 
victim of identity theft with regard to such debt. 
‘‘(10) Taking any action, attempting to take 
any action, or failing to remedy any prior action to 
enforce any purported interest in any real or per-
sonal property of a person that is securing any debt 
after the debt collector knows or has reason to be-
lieve that such person may be the victim of identity 
theft with regard to such debt.’’. 
SEC. 5. RELIEF FOR IDENTITY THEFT VICTIMS FROM FI-
NANCIAL INSTITUTIONS. 
(a) IN GENERAL.—The Electronic Fund Transfer 
Act is amended by inserting after section 910 (15 U.S.C. 
1693h) the following new section: 
‘‘§ 910A. Nonliability of identity theft victims 
‘‘(a) IN GENERAL.—If—
‘‘(1) a State maintains a procedure that pro-
vides for the investigation by the chief law enforce-
ment officer of the State, or an official or agency 
designated by the State, of a police report by any 
person alleging identity theft; and 
‘‘(2) the officer, official, or agency issues a no-
fault letter upon completion of the investigation stat-
ing that such person was the victim of identity theft 
with respect to any electronic fund transfer from an 
account of such person at a financial institution—
such person shall not be liable for any electronic fund 
transfer that such officer, official, or agency has deter-
mined resulted from an identity theft, except as otherwise 
provided in this section. 
‘‘(b) DUTIES OF FINANCIAL INSTITUTION.—Upon re-
ceiving a copy of a no-fault letter described in subsection 
(a)(2) with respect to any person, a financial institution—
‘‘(1) shall immediately recredit the person’s ac-
count for the amount of the electronic fund transfer, 
together with any interest due on such amount; 
‘‘(2) shall reimburse the account of the person 
for any fees imposed on such account in connection 
with or as a result of the electronic fund transfer 
that resulted from identity theft; and
‘‘(3) shall comply with any requirement the 
Board and the Federal Trade Commission may 
jointly prescribe under this section. 
‘‘(c) ADMINISTRATIVE AND JUDICIAL REVIEW.—Any 
financial institution adversely affected by the determina-
tion by the chief law enforcement officer of any State, or 
an official or agency designated by the State, that is the 
basis for a no-fault letter described in subsection (a)(2) 
with respect to any person may—
‘‘(1) seek any administrative review of such de-
termination that is available under the law of such 
State; 
‘‘(2) provide such officer, official, or agency 
with additional relevant information and request fur-
ther investigation of the facts and circumstances in-
volved in the alleged identity theft and a de novo re-
view of the prior determination on the basis of any 
relevant information not taken into account in mak-
ing the original determination; or 
‘‘(3) bring an action in any appropriate State 
court in such State to determine the validity of any 
claim by the creditor against such person with re-
spect to any obligation to which the no-fault letter 
applies.