To amend the Fair Debt Collection Practices Act to make certain technical corrections, and for other purposes.

September 10, 2003

Mr. GARRETT of New Jersey (for himself, Mr. ANDREWS, Mrs. KELLY, Mr. MURPHY, Mr. BEREUTER, Mr. BOYD, Mr. RAMSTAD, Mr. MOORE, Mr. CARTER, Mr. MCCOTTER, Mr. FEENEY, Ms. GINNY BROWN-WAITE of Florida, Mr. HENSARLING, and Ms. HART) introduced the following bill; which was referred to the Committee on Financial Services

To amend the Fair Debt Collection Practices Act to make certain technical corrections, 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 `Clarifications to the Fair Debt Collection Practices Act'.

SEC. 2. ELIMINATING REQUIREMENT FOR THE `VALIDATION NOTICE' IN FORMAL PLEADINGS.

Section 809 of the Fair Debt Collection Practices Act (15 U.S.C. 1692g) is amended by adding at the end the following new subsection:

`(d) FORMAL PLEADINGS EXCLUDED- Communications which are formal pleadings in a civil action shall not be considered communications for purposes of this title.'

SEC. 3. CODIFICATION OF THE CONSUMER VALIDATION NOTICE.

Section 809 of the Fair Debt Collection Practices Act (15 U.S.C. 1692g) is amended--

(1) in the portion of subsection (a) that precedes paragraph (1), by inserting `a written notice described in subsection (e) or' before `a written notice'; and

(2) by inserting after subsection (d) (as added by section 2 of this Act) the following new subsection:

`(e) ALTERNATIVE VERSION OF NOTICE- A notice is described in this subsection for purposes of subsection (a) if the notice contains--

`(1) the amount of the debt;

`(2) the name of the creditor to whom the debt is owed; and

`(3) a statement containing the following: `Unless you notify this office within 30 days after receiving this notice that you dispute the validity of this debt or any portion thereof, this office will assume this debt is valid. If you notify this office in writing within 30 days from receiving this notice that you dispute the validity of this debt or any portion thereof, this office will obtain verification of the debt or obtain a copy of a judgment and provide you with a copy of such judgment or verification. If you request of this office in writing within 30 days after receiving this notice this office will provide you with the name and address of the original creditor, if different from the current creditor.'.

SEC. 4. CLARIFYING RIGHT TO COLLECT WITHIN THE FIRST 30 DAYS.

Section 809(b) of the Fair Debt Collection Practices Act (15 U.S.C. 1692g(b)) is amended by striking `If the consumer' and inserting `Collection activities and communications may continue during the thirty-day period. However, if the consumer'.

SEC. 5. CLARIFYING THE REFERENCE TO `ATTORNEY' AND `REASONABLE TIME'.

The Fair Debt Collection Practices Act is amended--

(1) in section 804(6) (15 U.S.C. 1692b(6))--

(A) by striking `an attorney' and inserting `an attorney at law'; and

(B) by striking `a reasonable period of time' and inserting `30 days'; and

(2) in section 805(a)(2) (15 U.S.C. 1692c(a)(2))--

(A) by striking `an attorney' and inserting `an attorney at law'; and

(B) by striking `a reasonable period of time' and inserting `30 days'.

SEC. 6. CEASING COMMUNICATIONS.

Subsection (c) of section 805 of the Fair Debt Collection Practices Act (15 U.S.C. 1692c(c)) is amended to read as follows:

`(c) CEASING COMMUNICATION-

`(1) IN GENERAL- 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 for one additional communication which may be made by the debt collector for any of the following purposes (however many may apply):

`(A) To advise the consumer that the debt collector's further efforts are being terminated.

`(B) To notify the consumer that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor.

`(C) Where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy.

`(2) EFFECTIVE DATE OF NOTICE- If a notice referred to in paragraph (1) from a consumer is made by mail, notification shall be complete upon receipt.'.

SEC. 7. THE `BRADY AMENDMENT'.

Section 807(8) of the Fair Debt Collection Practices Act (15 U.S.C. Section 1692e(8)) is amended by striking `disputed debt' and inserting `debt which has been disputed by the consumer in writing'.

SEC. 8. VALIDATION OF DEBTS.

Section 809(a)(3) of the Fair Debt Collection Practices Act (15 U.S.C. 1692g(a)(3)) is amended by inserting `in writing,' after `any portion thereof,'.

END