Title: Practice of Law Technical Clarification Act of 2018
Policy area: Finance and Financial Sector

Summary:
Practice of Law Technical Clarification Act of 2018
This bill amends the Fair Debt Collection Practices Act to exclude from the definition of "debt collector" any law firm or licensed attorney engaged in litigation to collect a debt on behalf of a client, if such legal action complies with applicable rules of civil procedure.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5082 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 5082

 To amend the Fair Debt Collection Practices Act to exclude law firms 
 and licensed attorneys who are engaged in activities related to legal 
   proceedings from the definition of a debt collector, to amend the 
  Consumer Financial Protection Act of 2010 to prevent the Bureau of 
     Consumer Financial Protection from exercising supervisory or 
   enforcement authority with respect to attorneys when undertaking 
 certain actions related to legal proceedings, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                           February 23, 2018

  Mr. Mooney of West Virginia (for himself and Mr. Gonzalez of Texas) 
 introduced the following bill; which was referred to the Committee on 
                           Financial Services

_______________________________________________________________________

                                 A BILL


 
 To amend the Fair Debt Collection Practices Act to exclude law firms 
 and licensed attorneys who are engaged in activities related to legal 
   proceedings from the definition of a debt collector, to amend the 
  Consumer Financial Protection Act of 2010 to prevent the Bureau of 
     Consumer Financial Protection from exercising supervisory or 
   enforcement authority with respect to attorneys when undertaking 
 certain actions related to legal proceedings, and for other purposes.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Practice of Law Technical 
Clarification Act of 2018''.

SEC. 2. EXCLUSION OF LAW FIRMS AND ATTORNEYS FROM THE DEFINITION OF 
              DEBT COLLECTOR WHEN ENGAGED IN THE PRACTICE OF LAW.

    Section 803(6) of the Fair Debt Collection Practices Act (15 U.S.C. 
1692a(6)) is amended--
            (1) by redesignating subparagraph (F) as subparagraph (G); 
        and
            (2) by inserting after subparagraph (E) the following:
                    ``(F) any law firm or licensed attorney, to the 
                extent that--
                            ``(i) such firm or attorney is engaged in 
                        litigation activities in connection with a 
                        legal action in a court of law to collect a 
                        debt on behalf of a client, including--
                                    ``(I) serving, filing, or conveying 
                                formal legal pleadings, discovery 
                                requests, or other documents pursuant 
                                to the applicable statute or rules of 
                                civil procedure;
                                    ``(II) communicating in, or at the 
                                direction of, a court of law (including 
                                in depositions or settlement 
                                conferences) or in the enforcement of a 
                                judgment; or
                                    ``(III) any other activities 
                                engaged in as part of the practice of 
                                law, under the laws of a State in which 
                                the attorney is licensed, that relate 
                                to the legal action; and
                            ``(ii) such legal action is served on the 
                        defendant debtor, or service is attempted, in 
                        accordance with the applicable statute or rules 
                        of civil procedure; and''.

SEC. 3. AMENDMENT TO BUREAU AUTHORITY WITH RESPECT TO PRACTICE OF LAW.

    Section 1027(e)(2)(B) of the Consumer Financial Protection Act of 
2010 (12 U.S.C. 5517(e)(2)(B)) is amended by striking the period at the 
end and inserting ``, unless such financial product or service is 
provided by a licensed attorney who is not a debt collector as 
described under section 803(6)(F) of the Fair Debt Collection Practices 
Act.''.
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