The Fair Debt Collection Practices Act is at the heart of combating abusive debt collectors.  It is a powerful tool for those who know how to use it.  However, it can be complicated in its language and, more importantly, as to just how the courts have applied it.  This article is the Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692 et seq. (“FDCPA”) in an annotated form.  However, the annotations here are merely our legal opinions as to what portions of the statute mean.  They should not be viewed as applying to your specific circumstances.

Only a qualified consumer rights attorney can advise you about your specific situation.  Hyde & Swigart are consumer rights attorneys.  State laws, and the interpretation and rulings on federal laws, are different in each jurisdiction.  If you feel you have a violation of the FDCPA, contact Hyde & Swigart at (619) 233-7770 for a free consultation, or consider using our easy to use online evaluation form, below.  

The actual text of the statute is in black, while our annotations are in green.

 Also, Click Here To Download The FDCPA

§ 801. Short Title [15 USC 1601 note]

This title may be cited as the "Fair Debt Collection Practices Act."

This is the the "Fair Debt Collection Practices Act."

§ 802. Congressional findings and declarations of purpose [15 USC 1692]

Normally, Congress begins its statutes with "findings and declarations."  These findings and declarations are the reasons Congress believed the FDCPA was necessary.

(a) There is abundant evidence of the 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, and to invasions of individual privacy.

Contrary to what many would have people believe, abusive debt collection is serious business.

(b) Existing laws and procedures for redressing these injuries are inadequate to protect consumers.

Here Congress came to the conclusion that the laws on the books at that time are inadequate to help consumers. Consequently, Congress concluded that a special law was needed to redress these injuries by consumers.

(c) Means other than misrepresentation or other abusive debt collection practices are available for the effective collection of debts.

Congress here concluded that it was not necessary for debt collectors to lie and be abusive when collecting debts.

(d) Abusive debt collection practices are carried on to a substantial extent in interstate commerce and through means and instrumentalities of such commerce. Even where abusive debt collection practices are purely intrastate in character, they nevertheless directly affect interstate commerce.

Debt collection practices take place from one state to another. However, even when debt collection stays within a single state, it still affects debt collection from state to state.

(e) It is the purpose of this title to eliminate abusive debt collection practices by debt collectors, to ensure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged, and to promote consistent State action to protect consumers against debt collection abuses.

The reason for writing the Fair Debt Collection Practices Act is to "eliminate" abusive debt collection practices by debt collectors. The reason for this is to ensure that debt collectors who do not violate the law are not disadvantaged by those who do.  Further, Congress did not want some states to protect consumer while other did not.

§ 803. Definitions [15 USC 1692a]

As used in this title --

(1) The term "Commission" means the Federal Trade Commission.

In some areas in the Act, Congress looks to the Federal Trade Commission, which it calls the "Commission." Contrary to what some debt collectors would have consumers believe, the FDCPA provides for a private cause of action for consumers. That is, it is not true that the Federal Trade Commission is the only entity that can bring legal action against debt collectors. Private consumers, those who are abused by debt collectors, can also sue.

(2) The term "communication" means the conveying of information regarding a debt directly or indirectly to any person through any medium.

Throughout the FDCPA, the statute often uses the  word "communication." Here Congress defines what it means by "communication."

(3) The term "consumer" means any natural person obligated or allegedly obligated to pay any debt.

The word "consumer" is restricted to "persons" being abused.  It does not apply to a business that is abused.

(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.

The word "creditor" means anyone who extends credit.  Creditors are not normally subject to the FDCPA but are often subject to state statutes that regulate debt collectors.  For example, California's Rosenthal Fair Debt Collection Practices Act does regulate collection activities of creditors.  If a debt collector or law firm purchases debt for the purpose of collecting that debt, it is not a creditor and is, instead, a debt collector.

(5) The term "debt" means any obligation or alleged obligation of a consumer to pay money arising out of a transaction in which the money, property, insurance or services which are the subject of the transaction are primarily for personal, family, or household purposes, whether or not such obligation has been reduced to judgment.

The word "debt" means money owed for transactions involving consumer obligations (primarily for personal, family, or household purposes).  It does not mean a business debt, and there must be a "transaction."  (For example, child support payments do not normally fall within the definition because there is no "transaction.")

(6) The term "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. Notwithstanding the exclusion provided by clause (F) of the last sentence of this paragraph, the term includes any creditor who, in the process of collecting his own debts, 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 808(6), such term also includes any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the enforcement of security interests.

The phrase "debt collector" has two meanings.  First, it means anyone who uses the mail, internet, or telephones in any business that collects debts.  Second, it means anyone who regularly attempts to collect the debt to another, directly or indirectly.  However, it excludes the items listed below.

The term does not include --

(A) any officer or employee of a creditor while, in the name of the creditor, collecting debts for such creditor;

The phrase "debt collector" does not mean an employee of a creditor while that employee is trying to collect the creditor's debts.

(B) any person while acting as a debt collector for another person, both of whom are related by common ownership or affiliated by corporate control, if the person acting as a debt collector does so only for persons to whom it is so related or affiliated and if the principal business of such person is not the collection of debts;

The phrase "debt collector" does not include 1) a person who is acting as a debt collector exclusively for a company that the debt collector works for, and;  2) that company is not a debt collector.

(C) any officer or employee of the United States or any State to the extent that collecting or attempting to collect any debt is in the performance of his official duties;

The phrase "debt collector" does not mean a person who is employed by the United States, or a state, and is collecting a debt in the performance of his official duties.

(D) any person while serving or attempting to serve legal process on any other person in connection with the judicial enforcement of any debt;

The phrase "debt collector" does not mean process servers while they are serving legal process in connection with the judicial enforcement of a debt.

(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 distributing such amounts to creditors; and

The phrase "debt collector" does not include nonprofit organizations that, when asked by consumers, perform credit counseling and assists consumers by taking money from consumers and then distributing those funds to the consumer's creditors.  This does not include "for profit" companies, but it can include so-called "debt negotiators."

(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 arrangement; (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.

The phrase "debt collector" does not include collection activities 1) incidental to a "fiduciary duty" or an escrow agreement, 2) debts orginated by the person doing the collecting, 3) concerns debts that were paid up to date at the time the collector purchased the debt, 4) involving a debt obtained as collateral for a commercial debt.

(7) The term "location information" means a consumer's place of abode and his telephone number at such place, or his place of employment.

The phrase "location information" means the consumer's home address, the home telephone number, or where the consumer works.  Contrary to the claims of debt collectors, it means nothing more.

(8) The term "State" means any State, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, or any political subdivision of any of the foregoing.

The word "State" means a State, a territory or possession of the United States (U.S. Virgin Islands, for example), and includes the District of Columbia, the Commonwealth of Puerto Rico, and any political subdivision of any of these, such as a county, city, town, etc.

§ 804. Acquisition of location information [15 USC 1692b]

Any debt collector communicating with any person other than the consumer for the purpose of acquiring location information about the consumer shall --
(1) identify himself, state that he is confirming or correcting location information concerning the consumer, and, only if expressly requested, identify his employer;
(2) not state that such consumer owes any debt;
(3) not communicate with any such person more than once unless requested to do so by such person or unless the debt collector reasonably believes that the earlier response of such person is erroneous or incomplete and that 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 communication effected by the mails or telegram that 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 regard 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 the communication from the debt collector.

It is rare that a debt collector is allowed to speak with a person other than the consumer about the consumer's debt.  One instance where a debt collector can do this is when a debt collector is "acquiring location information."  However, this exception is far more restricted that the average debt collector would have people believe.  When a debt collector communicates with a person to "acquire location information" the debt collector must actually state that it is "confirming or correcting location information concerning the consumer."  The debt collector cannot state the name of the employer for which it works, unless the person asks for that information.  The debt collector can never tell the person that a debt is allegedly owed.  Importantly, a debt collector can only "acquire location information once," unless the person asks the debt collector to contact them again or unless the debt collector "believes that the earlier response of such person is erroneous or incomplete and that such person now has correct or complete location information."  This is extremely rare, but debt collectors often believe they can claim they were "acquiring location information" whenever they get caught speaking with third parties.  They can't.

A debt collector can never communicate with third parties or even the consumer through a post card or anything else that allows someone to see that a debt is allegedly owed without oping the communication.  The debt collector must also not put anything on the envelope that indicates the communication involves a debt or alleged debt.  This includes placing on the outside of the communication the debt collector's name, the phrase "past due," etc.

Finally, a debt collector cannot speak to a person other than the consumer about the consumer's debt once the debt collector knows the consumer is represented by an attorney concerning the debt.

§ 805. Communication in connection with debt collection [15 USC 1692c]

(a) COMMUNICATION WITH THE CONSUMER GENERALLY. Without the prior consent of the consumer given directly to the debt collector or the express permission of a court 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 the consumer. In the absence of knowledge of circumstances to the contrary, a debt collector shall assume that the convenient time for communicating with a consumer is after 8 o'clock antimeridian 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 debt and has knowledge 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 the 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 the consumer from receiving such communication.

If the debt collector wants to communicate with the consumer, the debt collector must follow very strict guidelines.  It cannot communicate with the consumer at any unusual time or place or a time or place known or which should be known to be inconvenient to the consumer.  In the absence of knowledge of circumstances to the contrary, a debt collector shall assume that the convenient time for communicating with a consumer is between 8:00 AM and 9:00 PM, local time at the consumer's location.  This is powerful language.  It doesn't just mean that a debt collector cannot communicate with the consumer between 8:00 AM and 9:00 PM.  It means a debt collector cannot communicate with the consumer at inconvenient times.  If you tell the collector it is inconvenient for the collector to communicate with you before noon, the collector can't call you before noon.  If you tell the collector it is inconvenient for the collector to communicate with you in the evening, the collector can't communicate with you in the evening.  If you tell the collector it is inconvenient for the collector to communicate with you on weekends, the collector can't communicate with you on weekends.

A debt collector cannot speak to a person other than the consumer about the consumer's debt once the debt collector knows the consumer is represented by an attorney concerning the debt.

A debt collector cannot communicate with a consumer at the consumer's place of employment when the debt collector has reason to know that the consumer's employer prohibits the consumer from receiving such communication.  If a debt collector calls you at work, tell the collector your employer prohibits you from receiving such communication.  (Whoever heard of an employer who allows debt collectors to waste their employees time, anyway?)

(b) COMMUNICATION WITH THIRD PARTIES. Except as provided in section 804, without the prior consent of the consumer given directly to the debt collector, or the express permission of a court of competent jurisdiction, or as reasonably necessary to effectuate a postjudgment judicial remedy, a debt collector may not communicate, in connection with the collection of any debt, with any person other than a consumer, his attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the debt collector.

As explained above, except for the very limited purpose of "acquiring location information about the consumer," (which can normally occur only once,) the debt collector can't speak with others about your alleged debt.  This includes not speaking with friends, neighbors, "references," employers, co-workers, your brother or sister, your roommate, your children, etc.  And remember, a debt collector can never tell anyone that you allegedly owe a debt.  The only exception is your spouse, parent (if you are a minor), guardian, executor, or administrator.

(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 debt collector shall not communicate further with the consumer with respect to such debt, except --
(1) to advise the consumer that the debt collector's further efforts are being terminated;
(2) to notify the consumer that the debt collector or creditor 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 complete upon receipt.

Pay particular attention to this one.  If you notify a debt collector in writing that you either 1) refuse to pay a debt or 2) that you want the debt collector to stop communicating with you the debt collector must stop communicating with you.  This means that you can stop a debt collector from calling you or sending you letters by simply writing to the collector and stating "I will not pay the debt" or by saying "Stop contacting me."  This is true even if you owe the debt in question.  And the debt collector must stop the moment it receives the letter, email, or other writing.  If you do this, the debt collector may advise you that it is no longer going to try and collect from you, or to tell you it "may invoke specified remedies" or "intends to invoke a specified remedy" (Usually, to tell you it will sue you.) 

(d) Definitions–For the purpose of this section, the term "consumer" includes the consumer's spouse, parent (if the consumer is a minor), guardian, executor, or administrator.

§ 806. Harassment or abuse [15 USC 1692d]

A debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person in connection with the collection of a debt. Without limiting the general 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 language 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 603(f) or 604(3)1 of this Act.
(4) The advertisement for sale of any debt to coerce payment of the debt.
(5) Causing a telephone to ring or engaging any person in telephone conversation repeatedly or continuously with intent to annoy, abuse, or harass any person at the called number.
(6) Except as provided in section 804, the placement of telephone calls without meaningful disclosure of the caller's identity.

Debt collectors may not harass, oppress, or abuse any person in connection with the collection of a debt.  This is a pretty general statement, but that help you, the consumer.  A debt collector may not use any criminal means to hurt you, your reputation, or your property. This rarely happens. However, the second item happens quite often. A debt collector may not swear at you. More importantly, a debt collector may not use language the natural consequence of which is to abuse you. This means that when a debt collector calls you a "deadbeat" this is a violation of the law. If a debt collector tell someone to "man up and pay your bills," this too violates the law. When a debt collector called you repeatedly in a day, or even repeatedly in the week or month, when there is no reason to do so, that violates the law. And finally, but probably most importantly, a debt collector must leave meaningful disclosure of its identity when communicating with you. What this means is, when a debt collector leaves a message on your answering machine it must state the name of the company it works for, and that is trying to collect a debt. Furthermore, it must leave a message stating that it is a debt collector attempting to collect a debt and any information obtained will be used for that purpose. Messages that only leaves a person's name, or the statement that it is a very important matter and a phone number, are in adequate.

§ 807. False or misleading representations [15 USC 1692e]
A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:
(1) The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State, including the use of any badge, uniform, or facsimile thereof.
(2) The false representation of --
(A) the character, amount, or legal status of any debt; or
(B) any services rendered or compensation which may be lawfully received by any debt collector for the collection of a debt.
(3) The false representation or implication that any individual is an attorney or that any communication is from an attorney.
(4) The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the debt collector or creditor intends to take such action.
(5) The threat to take any action that cannot legally be taken or that is not intended to be taken.
(6) The false representation or implication that a sale, referral, or other transfer of any interest in a debt shall cause the consumer to --
(A) lose any claim or defense to payment of the debt; or
(B) become subject to any practice prohibited by this title.
(7) The false representation or implication that the consumer committed any crime or other conduct in order to disgrace the consumer.
(8) Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed.
(9) The use or distribution of any written communication which simulates or is falsely represented to be a document authorized, issued, or approved by any court, official, or agency of the United States or any State, or which creates a false impression as to its source, authorization, or approval.
(10) The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer.
(11) The failure to disclose in the initial written communication with the consumer and, in addition, if the initial communication with the consumer is oral, in that initial oral communication, that the debt collector is attempting to collect a debt and that any information obtained will be used for that purpose, and the failure to disclose in subsequent communications that the communication is from a debt collector, except that this paragraph shall not apply to a formal pleading made in connection with a legal action.
(12) The false representation or implication that accounts have been turned over to innocent purchasers for value.
(13) The false representation or implication that documents are legal process.
(14) The use of any business, company, or organization name other than the true name of the debt collector's business, company, or organization.
(15) The false representation or implication that documents are not legal process forms or do not require action by the consumer.
(16) The false representation or implication that a debt collector operates or is employed by a consumer reporting agency as defined by section 603(f) of this Act.

This is the most common provision violated by the debt collector. In summary, this provision states that a debt collector may not lie to you. If a debt collector tells you that they have filed a lawsuit against you when in fact they have not this violates the law. When a debt collector tells you they are about to sue you, but that is not really true, that violates the law. If a debt collector tells you that they are going to send the sheriff out to have you arrested that violates the law. If a debt collector tells you that you're going to have to pay additional fees or costs, or that you will have to pay attorney fees later if you do not pay now, that violates the law. The threat to take action that cannot legally be taken is an important area. If the statute of limitations on your debt has expired (for example, in California it is two years for an oral contract, and for years for a written contract) and the debt collector says that they will sue you if you do not pay your debt, this is a threat to take action they cannot legally take. Any suggestion that you committed a crime because you did not pay this debt violates the FDCPA. Threats that they will "ruin your credit" violate the law. Lying to you for any reason, but especially in order to try to get information from you violates the law. Using a fake name, or a fake identity normally violates the law. Sending you forms that appear to be legal process, or court documents, or a form that looks like anything that it really is not, violates the law.

§ 808. Unfair practices [15 USC 1692f]
A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:
(1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.
(2) The acceptance by a debt collector from any person of a check or other payment instrument postdated by more than five days unless such person is notified in writing of the debt collector's intent to deposit such check or instrument not more than ten nor less than three business days prior to such deposit.
(3) The solicitation by a debt collector of any postdated check or other postdated payment instrument for the purpose of threatening or instituting criminal prosecution.
(4) Depositing or threatening to deposit any postdated check or other postdated payment instrument prior to the date on such check or instrument.
(5) Causing charges to be made to any person for communications by concealment of the true propose of the communication. Such charges include, but are not limited to, collect telephone calls and telegram fees.
(6) Taking or threatening to take any nonjudicial action to effect dispossession or disablement of property if --
(A) there is no present right to possession of the property claimed as collateral through an enforceable security interest;
(B) there is no present intention to take possession of the property; or
(C) the property is exempt by law from such dispossession or disablement.
(7) Communicating with a consumer regarding a debt by post card.
(8) Using any language or symbol, other than the debt collector's address, on any envelope when communicating with a consumer by use of the mails or by telegram, except that a debt collector may use his business name if such name does not indicate that he is in the debt collection business.

While collecting a debt, a debt collector cannot use unfair means. The first section is very commonly violated. A debt collector cannot collect any interest, fees, charges, or other incidental expenses, unless they are permitted by law or expressly authorized in agreement. That means that if a debt collector tries to charge you money for anything that is not in the contract they are violating the law. If a debt collector tries to collect 20% interest when the contract only allows for 12% interest that violates the law. When a debt collector tries to charge you a "collection fee" that violates the law. The second section is somewhat complicated, but it is commonly violated. In essence, what it states is that if a debt collector takes a post dated check from you, or any post dated instrument, such as an electronic payment, the debt collector must send you something in writing telling you that it intends to deposit that money, or take the money from your account, between three and 10 days before depositing the check or withdrawing funds from your account. It is a rare occasion that a debt collector does this. It is illegal for a debt collector to deposit a post dated check, or withdraw funds from your bank account, prior to the date is on the check or when you agreed to have the funds withdrawn. It is also illegal for a debt collector to threaten to repossess property unless it has a legal right to do so. In almost all cases, it does not have a legal right to do this. It is also illegal for a debt collector to communicate with you in any manner, in writing, it indicates on the outside of the envelope that the person is a debt collector.

§ 809. Validation of debts [15 USC 1692g]
(a) Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing --
(1) the amount of the debt;
(2) the name of the creditor to whom the debt is owed;
(3) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector;
(4) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector; and
(5) a statement that, upon the consumer's written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor.
(b) If the consumer notifies the debt collector in writing within the thirty-day period described in subsection (a) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or any copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector.
(c) The failure of a consumer to dispute the validity of a debt under this section may not be construed by any court as an admission of liability by the consumer.

In a nutshell, this section says that a debt collector must send you a certain notice of your rights in its initial communication with you or within five days of its initial communication with you. The notice itself is a hotbed of litigation primarily because debt collectors insist on trying to change the language in the notice. Do not assume that you are able to determine that a debt collector violated this notice requirement. However, at Hyde & Swigart, we will be glad to review any notice of this type.

§ 810. Multiple debts [15 USC 1692h]
If any consumer owes multiple debts and makes any single payment to any debt collector with respect to such debts, such debt collector may not apply such payment to any debt which is disputed by the consumer and, where applicable, shall apply such payment in accordance with the consumer's directions.

This means that you have the right to pay the debts that are not in dispute while refusing to pay the debts that are in dispute. In other words, a debt collector may not take a payment that you sent in on any undisputed that and use it to pay a disputed debt.

§ 811. Legal actions by debt collectors [15 USC 1692i]
(a) Any debt collector who brings any legal action on a debt against any consumer shall --
(1) in the case of an action to enforce an interest in real property securing the consumer's obligation, bring such action only in a judicial district or similar legal entity in which such real property is located; or
(2) in the case of an action not described in paragraph (1), bring such action only in the judicial district or similar legal entity --
(A) in which such consumer signed the contract sued upon; or
(B) in which such consumer resides at the commencement of the action.
(b) Nothing in this title shall be construed to authorize the bringing of legal actions by debt collectors.

Again, this is a hotbed of litigation. This section dictates where a debt collector may sue you. Basically, it says two things. First, a debt collector is suing you for real estate, a rare occurrence, the debt collector must sue you where the real estate is located. If the debt collector is suing you for a piece of real estate that you own in Los Angeles County, the debt collector may not sue you in San Diego County. The second situation is far more common. This says that a debt collector that is suing you for a non-real estate debt, for example a credit card, may only sue you and two places. First, the debt collector can sue you in the county where you physically signed the contract. Obviously, if you never actually signed a contract, this section does not apply to you. However, the debt collector can always sue you in the county where you reside on the day that they filed their lawsuit. Contrary to what debt collectors seem to believe, it does not matter where the creditor is located when the lawsuit commences. It only matters where you, the consumer, reside on the day that the lawsuit is filed. If you live in San Diego County, and the debt collector sues you in Orange County, the debt collector has violated the law.

§ 812. Furnishing certain deceptive forms [15 USC 1692j]
(a) It is unlawful to design, compile, and furnish any form knowing that such form would be used to create the false belief in a consumer that a person other than the creditor of such consumer is participating in the collection of or in an attempt to collect a debt such consumer allegedly owes such creditor, when in fact such person is not so participating.
(b) Any person who violates this section shall be liable to the same extent and in the same manner as a debt collector is liable under section 813 for failure to comply with a provision of this title.

This is a rare violation. A company cannot create deceptive forms for use by debt collectors.

§ 813. Civil liability [15 USC 1692k]
(a) Except as otherwise provided by this section, any debt collector who fails to comply with any provision of this title with respect to any person is liable to such person in an amount equal to the sum of --
(1) any actual damage sustained by such person as a result of such failure;
(2) (A) in the case of any action by an individual, such additional damages as the court may allow, but not exceeding $1,000; or
(B) in the case of a class action, (i) such amount for each named plaintiff as could be recovered under subparagraph (A), and (ii) such amount as the court may allow for all other class members, without regard to a minimum individual recovery, not to exceed the lesser of $500,000 or 1 per centum of the net worth of the debt collector; and
(3) in the case of any successful action to enforce the foregoing liability, the costs of the action, together with a reasonable attorney's fee as determined by the court. On a finding by the court that an action under this section was brought in bad faith and for the purpose of harassment, the court may award to the defendant attorney's fees reasonable in relation to the work expended and costs.
(b) In determining the amount of liability in any action under subsection (a), the court shall consider, among other relevant factors --
(1) in any individual action under subsection (a)(2)(A), the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, and the extent to which such noncompliance was intentional; or
(2) in any class action under subsection (a)(2)(B), the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, the resources of the debt collector, the number of persons adversely affected, and the extent to which the debt collector's noncompliance was intentional.
(c) A debt collector may not be held liable in any action brought under this title if the debt collector shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error.
(d) An action to enforce any liability created by this title may be brought in any appropriate United States district court without regard to the amount in controversy, or in any other court of competent jurisdiction, within one year from the date on which the violation occurs.
(e) No provision of this section imposing any liability shall apply to any act done or omitted in good faith in conformity with any advisory opinion of the Commission, notwithstanding that after such act or omission has occurred, such opinion is amended, rescinded, or determined by judicial or other authority to be invalid for any reason.

This section establishes what you, the consumer, can expect to receive for violations of the FDCPA. Basically, in a nutshell, it says this. The consumer can receive up to $1000 in statutory damages. Think of this as being like a "traffic ticket." The debt collector got caught violating the law, so now the debt collector is going to be fined. The only difference is it is you, and not the government, that receives the fine. Furthermore, and far more significantly, you will receive any "actual damages." With regard to actual damages, the sky is the limit. Actual damages are any injury to you personally. That means that if you lost your job because a debt collector called you at work, the debt collector is liable to you for your injuries. If you are in the military, and you lost your security clearance because of debt collector, this is actual damages. If you lost your home because of abusive debt collection activity, that is actual damages. Mental anguish and embarrassment is considered to be actual damages. If a debt collector was calling your employer, your coworkers, your neighbors, your family, or anyone else, and this activity caused you a high degree of stress, anxiety, embarrassment, emotional or mental anguish, you are entitled to be compensated for this.

Also, you are entitled to be compensated for all reasonable attorney fees and costs associated with suing the debt collector. This means that you do not have to pay for an attorney or the filing fees or any other fee associated with a lawsuit when you sue a debt collector. The debt collector must pay that. There is one section here that is worth reviewing. It states that if you file a lawsuit in bad faith, and for the purpose of harassment, you can be forced to pay the other side's attorney fees and costs. This is extremely rare. The other side, that is, the debt collector, would have to prove that you file your lawsuit just have her ask the debt collector. In other words, the debt collector would have to prove that you had absolutely no belief in your lawsuit when you filed it.

Finally, this section sets up what is commonly referred to as the "bona fide error defense." The bona fide error defense is a very difficult defense for the debt collector to use. First of all, the debt collector has to admit it violated the law, and this is a very dangerous strategy. However, even after admitting it violated the law the debt collector must establish that the violation 1) was not intentional, and that 2) it had a procedure in place specifically adapted to avoid the specific "error" that took place, and that 3) it followed that procedure, and that 4) even after following that procedure the "error" happened anyway. To say that this is a high standard is an understatement. The bona fide error defense is extremely difficult for a debt collector to establish, and it rarely succeeds.

§ 814. Administrative enforcement [15 USC 1692l]
(a) Compliance with this title shall be enforced by the Commission, except to the extend that enforcement of the requirements imposed under this title is specifically committed to another agency under subsection (b). For purpose of the exercise by the Commission of its functions and powers under the Federal Trade Commission Act, a violation of this title shall be deemed an unfair or deceptive act or practice in violation of that Act. All of the functions and powers of the Commission under the Federal Trade Commission Act are available to the Commission to enforce compliance by any person with this title, irrespective of whether that person is engaged in commerce or meets any other jurisdictional tests in the Federal Trade Commission Act, including the power to enforce the provisions of this title in the same manner as if the violation had been a violation of a Federal Trade Commission trade regulation rule.
(b) Compliance with any requirements imposed under this title shall be enforced under --
(1) section 8 of the Federal Deposit Insurance Act, in the case of --
(A) national banks, by the Comptroller of the Currency;
(B) member banks of the Federal Reserve System (other than national banks), by the Federal Reserve Board; and
(C) banks the deposits or accounts of which are ensured by the Federal Deposit Insurance Corporation (other than members of the Federal Reserve System), by the Board of Directors of the Federal Deposit Insurance Corporation;
(2) section 5(d) of the Home Owners Loan Act of 1933, section 407 of the National Housing Act, and sections 6(i) and 17 of the Federal Home Loan Bank Act, by the Federal Home Loan Bank Board (acting directing or through the Federal Savings and Loan Insurance Corporation), in the case of any institution subject to any of those provisions;
(3) the Federal Credit Union Act, by the Administrator of the National Credit Union Administration with respect to any Federal credit union;
(4) subtitle IV of Title 49, by the Interstate Commerce Commission with respect to any common carrier subject to such subtitle;
(5) the Federal Aviation Act of 1958, by the Secretary of Transportation with respect to any air carrier or any foreign air carrier subject to that Act; and
(6) the Packers and Stockyards Act, 1921 (except as provided in section 406 of that Act), by the Secretary of Agriculture with respect to any activities subject to that Act.
(c) For the purpose of the exercise by any agency referred to in subsection (b) of its powers under any Act referred to in that subsection, a violation of any requirement imposed under this title shall be deemed to be a violation of a requirement imposed under that Act. In addition to its powers under any provision of law specifically referred to in subsection (b), each of the agencies referred to in that subsection may exercise, for the purpose of enforcing compliance with any requirement imposed under this title any other authority conferred on it by law, except as provided in subsection (d).
(d) Neither the Commission nor any other agency referred to in subsection (b) may promulgate trade regulation rules or other regulations with respect to the collection of debts by debt collectors as defined in this title.

§ 815. Reports to Congress by the Commission [15 USC 1692m]
(a) Not later than one year after the effective date of this title and at one-year intervals thereafter, the Commission shall make reports to the Congress concerning the administration of its functions under this title, including such recommendations as the Commission deems necessary or appropriate. In addition, each report of the Commission shall include its assessment of the extent to which compliance with this title is being achieved and a summary of the enforcement actions taken by the Commission under section 814 of this title.
(b) In the exercise of its functions under this title, the Commission may obtain upon request the views of any other Federal agency which exercises enforcement functions under section 814 of this title.

§ 816. Relation to State laws [15 USC 1692n]
This title does not annul, alter, or affect, or exempt any person subject to the provisions of this title from complying with the laws of any State with respect to debt collection practices, except to the extent that those laws are inconsistent with any provision of this title, and then only to the extent of the inconsistency. For purposes of this section, a State law is not inconsistent with this title if the protection such law affords any consumer is greater than the protection provided by this title.

§ 817. Exemption for State regulation [15 USC 1692o]
The Commission shall by regulation exempt from the requirements of this title any class of debt collection practices within any State if the Commission determines that under the law of that State that class of debt collection practices is subject to requirements substantially similar to those imposed by this title, and that there is adequate provision for enforcement.

§ 818. Effective date [15 USC 1692 note]
This title takes effect upon the expiration of six months after the date of its enactment, but section 809 shall apply only with respect to debts for which the initial attempt to collect occurs after such effective date.
Approved September 20, 1977
ENDNOTES
1. So in original; however, should read "604(a)(3)."
LEGISLATIVE HISTORY:
Public Law 95-109 [H.R. 5294]
HOUSE REPORT No. 95-131 (Comm. on Banking, Finance, and Urban Affairs).
SENATE REPORT No. 95-382 (Comm. on Banking, Housing, and Urban Affairs).
CONGRESSIONAL RECORD, Vol. 123 (1977):
Apr. 4, considered and passed House.
Aug. 5, considered and passed Senate, amended.
Sept. 8, House agreed to Senate amendment.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 13, No. 39:
Sept. 20, Presidential statement.
AMENDMENTS:
SECTION 621, SUBSECTIONS (b)(3), (b)(4) and (b)(5) were amended to transfer certain administrative enforcement responsibilities, pursuant to Pub. L. 95-473, § 3(b), Oct. 17, 1978. 92 Stat. 166; Pub. L. 95-630, Title V. § 501, November 10, 1978, 92 Stat. 3680; Pub. L. 98-443, § 9(h), Oct. 4, 1984, 98 Stat. 708.
SECTION 803, SUBSECTION (6), defining "debt collector," was amended to repeal the attorney at law exemption at former Section (6)(F) and to redesignate Section 803(6)(G) pursuant to Pub. L. 99-361, July 9, 1986, 100 Stat. 768. For legislative history, see H.R. 237, HOUSE REPORT No. 99-405 (Comm. on Banking, Finance and Urban Affairs). CONGRESSIONAL RECORD: Vol. 131 (1985): Dec. 2, considered and passed House. Vol. 132 (1986): June 26, considered and passed Senate.
SECTION 807, SUBSECTION (11), was amended to affect when debt collectors must state (a) that they are attempting to collect a debt and (b) that information obtained will be used for that purpose, pursuant to Pub. L. 104-208 § 2305, 110 Stat. 3009 (Sept. 30, 1996)