article: SECTION 1. SHORT TITLE. This Act may be cited as the ``Fair Debt Collection Practices Amendments Act of 1995''. SEC. 2. DEFINITIONS. Section 803(6)(C) of the Fair Debt Collection Practices Act (15 U.S.C. 1692a(6)(C)) is amended by inserting ``owed to the Federal Government or to any State'' after ``collect any debt''. SEC. 3. ACQUISITION OF LOCATION INFORMATION. Section 804(6) of the Fair Debt Collection Practices Act (15 U.S.C. 1692b(6)) is amended by inserting before the period at the end the following: ``, except that the debt collector may communicate with persons other than the attorney for the purpose of acquiring location information or information relating to the income, assets, or credit of the consumer if the attorney refuses to provide such information to the debt collector''. SEC. 4. VALIDATION OF DEBTS. (a) Destination of Validation Notice.--Section 809(a) of the Fair Debt Collection Practices Act (15 U.S.C. 1692g(a)) is amended in the matter preceding paragraph (1) by striking ``send the consumer'' and inserting ``send to the last known address of the consumer (or to any location at which the debt collector has a reasonable belief that the consumer is residing)''. (b) Form of Validation Notice.--Section 809(a)(3) of the Fair Debt Collection Practices Act (15 U.S.C. 1692g(a)(3)) is amended-- (1) by inserting ``appearing in type at least as large as 12-point type'' after ``a statement''; (2) by striking ``disputes'' and inserting ``notifies the debt collector in writing that''; and (3) by striking ``thereof,'' and inserting ``thereof is disputed,''. SEC. 5. LEGAL ACTIONS BY DEBT COLLECTORS. Section 811(a)(2) of the Fair Debt Collection Practices Act (15 U.S.C. 1692i(a)(2)) is amended-- (1) in subparagraph (A), by inserting ``or in which the obligation was incurred'' before the semicolon; and (2) in subparagraph (B), by inserting ``or is employed'' after ``consumer resides''. SEC. 6. CIVIL LIABILITY. (a) Limitations on Damages.--Section 813(a) of the Fair Debt Collection Practices Act (15 U.S.C. 1692k(a)) is amended to read as follows: ``(a) Limitations on Damages.-- ``(1) In general.--Except as otherwise provided in this section, a debt collector who fails to comply with any provision of this title with respect to any person shall be liable to such person as follows: ``(A) Individual actions.--In the case of an action arising under this title other than an action described in subparagraph (B), in an amount equal to any actual damages sustained by the person as a result of such failure. ``(B) Class actions.--In the case of an action arising under this title that is brought or maintained as a class action pursuant to the Federal Rules of Civil Procedure or as otherwise provided by law (hereafter in this section referred to as a `class action'), in an amount equal to the sum of-- ``(i) the amount for each named plaintiff as is recoverable 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 total amount for such class members as is recoverable under subparagraph (A). ``(C) Costs and attorney's fees.--In the case of any successful action to enforce the liability specified in subparagraph (A) or (B), the costs of the action, together with reasonable attorney's fees as determined by the court, in an amount not to exceed the amount awarded in such action under subparagraph (A) or (B), as applicable. ``(2) Class action limitation.--The total amount recovered under paragraph (1)(B) in any class action or series of class actions arising out of the same failure to comply by the same debt collector shall not exceed the lesser of-- ``(A) $500,000; or ``(B) 1 percent of the net financial worth of the debt collector. ``(3) Actions brought in bad faith.--On a finding by the court that an action arising under this title was brought in violation of Rule 11(b) of the Federal Rules of Civil Procedure, the court may award to the defendant the costs of the action, together with reasonable attorney's fees, as determined by the court. ``(4) Offer of judgment.--Notwithstanding any other provision of law, in any action arising under this title, for purposes of any application of Rule 68 of the Federal Rules of Civil Procedure-- ``(A) costs shall include reasonable attorney's fees; and ``(B) following any offer made to a plaintiff or to the plaintiff class that is not accepted in accordance with such Rule, the plaintiff or plaintiff class, as applicable, shall not be entitled to recover attorney's fees as otherwise provided in this title if the amount of the final judgment awarded to the plaintiff or to the plaintiff class, as applicable, is less than or equal to the offer.''. (b) Factors for Consideration.--Section 813(b) of the Fair Debt Collection Practices Act (15 U.S.C. 1692k(b)) is amended to read as follows: ``(b) Factors for Consideration.--In determining the liability of a debt collector under subsection (a) in any action arising under this title, the court shall consider, among other relevant factors-- ``(1) the frequency and persistence of noncompliance by the debt collector; ``(2) the nature of such noncompliance; and ``(3) the extent to which the noncompliance of the debt collector is intentional.''. (c) Modification of Bona Fide Error Defense.--Section 813(c) of the Fair Debt Collection Practices Act (15 U.S.C. 1692k(c)) is amended-- (1) by striking ``violation was not'' and inserting the following: ``violation-- ``(1) was not''; (2) by striking the period at the end and inserting ``; or''; and (3) by adding at the end the following new paragraph: ``(2) resulted from the use of written communication in a form approved by any Federal or State agency responsible for the regulation of debt collectors.''. (d) Reasonable Person Standard.--Section 813 of the Fair Debt Collection Practices Act (15 U.S.C. 1692k) is amended by adding at the end the following new subsection: ``(f) Reasonable Person Standard.--In making a determination under this section as to whether or not a debt collector has failed to comply with any provision of this title with respect to any person, the court shall consider the effect of the actions or omissions of the debt collector on a reasonable person.''. SEC. 7. RELATION TO STATE LAWS. Section 816 of the Fair Debt Collection Practices Act (15 U.S.C. 1692n) is amended to read as follows: ``SEC. 816. RELATION TO STATE LAWS. ``(a) In General.--This title supersedes any provision of the law of any State that creates a private right of action relating to any operation, practice, or activity of a debt collector. ``(b) No Remedy Under This Title for State Law Violations.--This title shall not be construed to provide a remedy for any violation of the law of any State with respect to debt collection practices. ``(c) No Liability Under This Title for State Law Violations.--This title shall not be construed to establish any liability or penalty for a violation of the law of any State unless the conduct which constitutes a violation of the law of such State also constitutes a violation of any requirement of this title or any regulation promulgated pursuant to this title.''.
summary: Fair Debt Collection Practices Amendments Act of 1995 - Amends the Fair Debt Collection Practices Act to limit the exclusion from its purview of debt collection activities by a Federal or State official to collection of debts owed to the Federal or a State government, respectively. (Sec. 3) Permits a debt collector to acquire income, assets, or credit information from a person other than the debtor's attorney if the attorney refuses to provide such information. (Sec. 4) Revises procedural guidelines for: (1) debt validation; (2) legal actions by debt collectors; and (3) limitations on damages, including repeal of the allowance of up to $1,000 in additional damages. Provides that this Act: (1) supersedes any State law creating a private right of action against a debt collector; (2) does not provide a remedy for any violation of State law regarding debt collection practices; and (3) does not establish any liability or penalty for violation of State law unless such violation also constitutes a violation under this Act.