FDCPA — Scope, definitions, coverage, liability, enforcement

Authority

The Fair Debt Collection Practices Act, 15 U.S.C. §§1692–1692p (Pub. L. 95-109, enacted Sept. 20, 1977, effective six months later; last substantively amended by Dodd-Frank Pub. L. 111-203 §1089, transferring primary rulemaking to the CFPB). Enforced by the CFPB and FTC (§1692l); privately enforceable via §1692k. The CFPB's implementing rule is Regulation F, 12 CFR Part 1006 (see the reg-f pages).

Operative text

Key definitions (§1692a):

(2) The term "communication" means the conveying of information regarding a debt directly or indirectly to any person through any medium. — 15 U.S.C. §1692a(2)

(3) The term "consumer" means any natural person obligated or allegedly obligated to pay any debt. — 15 U.S.C. §1692a(3)

(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. — 15 U.S.C. §1692a(5)

(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 1692f(6) of this title, 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. — 15 U.S.C. §1692a(6)

Exclusions from "debt collector" (§1692a(6)(A)–(F)) — the two most load-bearing in practice:

(A) any officer or employee of a creditor while, in the name of the creditor, collecting debts for such creditor; — 15 U.S.C. §1692a(6)(A)

(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. — 15 U.S.C. §1692a(6)(F)

(Remaining exclusions: (B) affiliated entities collecting only for affiliates where collection isn't the principal business; (C) federal/state officers in official duties; (D) legal-process servers; (E) nonprofit consumer credit counseling.)

Civil liability (§1692k):

(a) Amount of damages Except as otherwise provided by this section, any debt collector who fails to comply with any provision of this subchapter 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. — 15 U.S.C. §1692k(a)

(c) Intent A debt collector may not be held liable in any action brought under this subchapter 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. — 15 U.S.C. §1692k(c)

An action to enforce any liability created by this subchapter 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. — 15 U.S.C. §1692k(d)

Administrative enforcement (§1692l):

The Federal Trade Commission shall be authorized to enforce compliance with this subchapter, except to the extent that enforcement of the requirements imposed under this subchapter is specifically committed to another Government agency under any of paragraphs (1) through (5) of subsection (b), subject to subtitle B of the Consumer Financial Protection Act of 2010 [12 U.S.C. 5511 et seq.]. For purpose of the exercise by the Federal Trade Commission of its functions and powers under the Federal Trade Commission Act (15 U.S.C. 41 et seq.), a violation of this subchapter shall be deemed an unfair or deceptive act or practice in violation of that Act. — 15 U.S.C. §1692l(a) (first two sentences)

(6) subtitle E of the Consumer Financial Protection Act of 2010 [12 U.S.C. 5561 et seq.], by the Bureau, with respect to any person subject to this subchapter. — 15 U.S.C. §1692l(b)(6)

Except as provided in section 1029(a) of the Consumer Financial Protection Act of 2010 [12 U.S.C. 5519(a)], the Bureau may prescribe rules with respect to the collection of debts by debt collectors, as defined in this subchapter. — 15 U.S.C. §1692l(d)

Plain English

Interpretation — the quotes above win on any conflict.

• The FDCPA regulates third-party collectors of consumer debts. "Debt" is limited to personal/family/household obligations — commercial (B2B) debt is outside the statute.
• A "debt collector" is someone whose principal business is collecting debts, or who regularly collects debts owed to another. First-party creditors collecting their own debts in their own name are generally excluded (§1692a(6)(A) and (F)(ii)–(iii)) — but a creditor collecting under a different name that implies a third party IS covered, and a debt buyer who acquired the account after default does not get the (F)(iii) exclusion.
• State overlay: California's Rosenthal Act extends substantially similar duties to first-party creditors collecting their own consumer debts — being FDCPA-exempt does not mean Rosenthal-exempt. See ../../state/ca.md.
• Liability: actual damages + statutory additional damages up to $1,000 per action (not per violation, per most courts) + fees/costs; class actions capped at the lesser of $500,000 or 1% of net worth. One-year statute of limitations from the violation. The bona fide error defense (§1692k(c)) requires proof of procedures reasonably adapted to avoid the error — documented, systematic compliance controls are the substance of that defense.
• Enforcement: CFPB (primary rulemaker post-Dodd-Frank — hence Reg F) and FTC, plus prudential regulators for their institutions.

Traps / edge cases

• "Communication" is broad — any medium, direct or indirect, that conveys information regarding a debt. Voicemails, texts, and emails count.
• Repo/replevin agents: §1692a(6) third sentence pulls security-interest enforcers into coverage only for §1692f(6).
• $1,000 is a ceiling on "additional" damages, not a floor and not automatic; actual damages are uncapped.
• Bona fide error (per Jerman v. Carlisle, 559 U.S. 573 (2010)) does not cover mistakes of law about the FDCPA itself — only clerical/factual errors backed by procedures.
• Supreme Court (Henson v. Santander, 582 U.S. 79 (2017)) held a debt buyer collecting debts it owns is not "collecting for another" under the second prong — but it can still qualify under the "principal purpose" prong.
• §1692k(e) gives a safe harbor for acts in good-faith conformity with CFPB advisory opinions.

Related

• Siblings: location-information.md, communications.md, harassment-abuse.md, false-misleading.md, unfair-practices.md, validation.md, legal-actions.md
• Reg F: ../reg-f/call-frequency.md, ../reg-f/validation-notice.md, ../reg-f/communications-opt-outs.md, ../reg-f/time-barred-debt.md
• CFPB guidance: ../cfpb-guidance/pay-to-pay-fees.md
• States: ../../state/ca.md (Rosenthal covers creditors), ../../state/ny.md, ../../state/tx.md, ../../state/fl.md, ../../state/ma.md