Consumer Lending Compliance
Reference materials covering regulations, examination manuals, and supervisory resources as they pertain to consumer lending not secured by real property. Specific areas of focus include the Truth in Lending Act (TILA), credit cards, small-dollar loans, student lending, the Fair Debt Collection Practices Act (FDCPA), the Servicemembers Civil Relief Act (SCRA), and the Military Lending Act (MLA).
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- Consumer Compliance
- Consumer Deposits And Related Activities
- Consumer Lending Compliance
- Mortgage Lending
- Privacy And Credit Reporting
- Unfair, Deceptive, Or Abusive Acts Or Practices
Laws and Regulations
Key laws and regulations that pertain to FDIC-supervised institutions; note that other laws and regulations also may apply.
- Truth in Lending Act
- Part 1026 — Truth in Lending (Regulation Z) (ecfr.gov) provides access to the Consumer Financial Protection Bureau’s (CFPB) Regulation Z — Truth in Lending
- Section 303.248 — Truth in Lending Act (ecfr.gov) provides regulatory information regarding requests for relief from reimbursement pursuant to the TILA
- Credit Card Accountability Responsibility and Disclosure Act of 2009 (CARD Act) provides the text version of the CARD Act issued by the Federal Trade Commission (FTC)
- Final Rule – Payday, Vehicle Title, and Certain High-Cost Installment Loans grants access to the CFPB website and outlines consumer protections for certain consumer credit products and provides related interpretations
- Part 1006 — Fair Debt Collection Practices Act (Regulation F) (ecfr.gov) provides access to the CFPB’s Regulation F — Fair Debt Collection Practices Act
- Servicemembers Civil Relief Act establishes financial and legal protections for active-duty service members, including National Guard and reserve members, and their families
- Part 232 — Limitations on Terms of Consumer Credit Extended to Service Members and Dependents of 2015 (govinfo.gov) establishes the final rule for limitations on terms of consumer credit extended to service members and dependents
- Part 232 — Military Lending Act Limitations on Terms of Consumer Credit Extended to Service Members and Dependents Interpretive Rule of 2016 (govinfo.gov) provides guidance on certain questions the Department of Defense (DoD) received regarding compliance with the final rule
- Part 232 — Military Lending Act Limitations on Terms of Consumer Credit Extended to Service Members and Dependents Interpretive Rule Amendment of 2017 (govinfo.gov) provides further guidance to the industry and the public on the DoD’s view of its existing regulation
- Part 232 — Military Lending Act Limitations on Terms of Consumer Credit Extended to Service Members and Dependents Interpretive Rule Amendment of 2020 (federalregister.gov) provides further guidance to the industry and the public on the DoD’s view of its existing regulation
Supervisory Resources
Frequently asked questions, advisories, statements of policy, and other information issued by the FDIC alone, or on an interagency basis, provided to address consumer protection issues.
- Truth in Lending Act
- Section V. Lending — TILA of the FDIC’s Consumer Compliance Examination Manual provides an introduction to the TILA and outlines regulatory requirements as well as related examination procedures
- Section V. Lending — TIL Restitution of the FDIC’s Consumer Compliance Examination Manual provides information that relates to the identification of TILA violations subject to restitution, restitution calculations, and the determination of appropriate correction action
- Administrative Enforcement of the Truth in Lending Act — Restitution is a joint statement of policy which summarizes the restitution provisions of the TILA and explains corrective actions the financial regulatory agencies will generally intend to take in those situations in which the TILA gives the agencies the authority to take equitable remedial action
- Questions and Answers address the Joint Statement of Policy for Administrative Enforcement of the TILA — Restitution issued by the FFIEC on July 11, 1980, and revised July 1998
- Interagency Lending Principles for Offering Responsible Small-Dollar Loans encourages financial institutions to offer responsible small-dollar loans
- Responsible Small-Dollar Lending to Consumers and Small Businesses in Response to COVID-19 provides the joint agency statement that encourages financial institutions to offer small-dollar loans to consumers and small businesses
- Section V. Lending – Small Dollar Lending of the FDIC’s Consumer Compliance Examination Manual provides an introduction to applicable laws and regulations and other supervisory resources related to small dollar lending as well as related examination procedures.
- Voluntary Private Education Loan Rehabilitation Programs is an advisory to make financial institutions aware of an amendment to Section 623 of the Fair Credit Reporting Act which gives consumers the opportunity to rehabilitate a private education loan with a previously reported default
- Guidance on Private Student Loans With Graduated Repayment Terms at Origination provides financial institutions with principles applicable to private student loans that have graduated repayment terms
- Banking Agencies Encourage Financial Institutions to Work with Student Loan Borrowers Experiencing Financial Difficulties is an advisory encouraging financial institutions to work constructively with private student loan borrowers experiencing financial difficulties using prudent workout arrangements that are consistent with safe-and-sound lending practices
- Section VII. Unfair and Deceptive Practices — FDCPA of the FDIC’s Consumer Compliance Examination Manual provides an introduction to the FDCPA and outlines regulatory requirements as well as related examination procedures
- Debt Collection FAQs summarize frequently asked questions and answers, provided by the FTC, regarding debt collection
- Section V. Lending — Servicemembers Civil Relief Act of the FDIC’s Consumer Compliance Examination Manual provides an introduction to the SCRA and outlines regulatory requirements as well as related examination procedures
- Interagency Guidance on Mortgage Servicing Practices Concerning Military Homeowners with Permanent Change of Station Orders provides guidance that addresses mortgage servicer practices that may pose risks to homeowners who are serving in the military
- Section V. Lending — Military Lending Act of the FDIC’s Consumer Compliance Examination Manual provides an introduction to the MLA and outlines regulatory requirements as well as related examination procedures
- Section V. Lending — Talent Amendment of the FDIC’s Consumer Compliance Examination Manual provides an introduction to the Talent Amendment and outlines regulatory requirements as well as related examination procedures
Other Resources
Supplemental information related to consumer protection issues.
- Truth in Lending Act
- Truth in Lending Threshold Adjustments provides access to the annual TILA threshold adjustments for exempt consumer credit transactions
- Rural and Underserved Counties List provides guidance to the entities that do business in rural or underserved counties and are exempt from certain regulatory requirements of the TILA
- Calculating Adjustments to the Safe Harbor Limits on Credit Card Issuer Fees provides access to instructions regarding the calculation adjustments to the safe harbor limits on credit card issuer fees
- Credit Card Agreements and Surveys allows users to explore databases about credit cards, including general credit card agreements and college credit card marketing agreements, and view survey data regarding the Credit CARD Act on the CFPB website
- Credit Card Agreements Submission Instructions outlines instructions for credit card issuers to submit their currently-offered credit card agreements quarterly to the CFPB, to be posted on the CFPB’s website
- CFPB Payday Lending Rule Small Entity Compliance Guide focuses on the payment provisions of the Payday Lending Rule and summarizes record retention compliance program requirements as they relate to the payment provisions
- Limits of Debt Collection Tactics includes an overview, provided by the CFPB, of the FDCPA and restrictions on communications by debt collectors when collecting a debt
- The Servicemembers Civil Relief Act provides additional information from the Department of Justice on the provisions set forth by the SCRA
- The Military Lending Act website (mla.dmdc.osd.mil) enables a user to verify whether an individual or their military sponsor is currently servicing on active duty in the U.S. military.
Last Updated: July 18, 2025
15 USC 169: Debt Collection Rules and Consumer Protections
Learn how 15 USC 169 regulates debt collection practices, protects consumers from unfair tactics, and outlines enforcement and legal remedies.
Published Mar 29, 2025
Debt collection can be a stressful experience, and without legal protections, consumers could face harassment, deception, or unfair treatment. To address these concerns, federal law sets clear rules on how debts can be collected while ensuring that consumers are treated fairly.
One key law governing debt collection practices is 15 USC 169, which establishes guidelines for what collectors can and cannot do. Understanding this law is essential for both consumers and businesses to ensure compliance and protect rights.
Scope of 15 USC 169
15 USC 169, part of the Fair Debt Collection Practices Act (FDCPA), regulates how third-party debt collectors interact with consumers. It applies to personal, family, and household debts, such as credit card balances, medical bills, and mortgages, but does not cover business-related obligations. The law primarily targets third-party collectors, excluding original creditors unless they use a different name to collect.
A “debt collector” is defined as any entity that regularly collects debts owed to another party, including collection agencies, attorneys collecting debts for clients, and companies purchasing delinquent debts for collection. Courts have clarified this definition, as seen in Henson v. Santander Consumer USA Inc. (2017), which held that entities collecting debts they own are not considered debt collectors under the FDCPA.
The law also imposes strict rules on how and when collectors can contact consumers. Calls are prohibited before 8 a.m. or after 9 p.m. unless the consumer consents, and collectors must provide written notice within five days of initial contact, detailing the debt amount and the original creditor’s name.
Types of Prohibited Conduct
15 USC 169 explicitly forbids certain debt collection practices to prevent harassment, deception, and unfair treatment. Violators face legal consequences, including fines and lawsuits.
Harassment
Debt collectors cannot harass, oppress, or abuse consumers. This includes repeated or excessive phone calls intended to intimidate, the use of obscene language, and threats of violence. They also cannot disclose debts to third parties, except in limited situations, such as verifying location information.
Publicly identifying consumers as debtors, such as publishing their names on a “bad debt” list, is prohibited. Collectors cannot send postcards or use envelopes that reveal their purpose, as this could embarrass consumers. Those subjected to harassment can sue for damages, including up to $1,000 in statutory damages plus attorney’s fees.
False Representation
Collectors may not use deceptive tactics, such as falsely claiming to be attorneys, government officials, or credit bureau representatives. They cannot misrepresent the debt amount, fabricate legal consequences, or threaten actions they lack the authority to take, such as arrest or wage garnishment without a court order.
Sending letters that appear to be from a court or law enforcement agency is illegal. Courts have ruled against such practices, as seen in Heintz v. Jenkins (1995), which confirmed that attorneys engaged in debt collection must comply with the law. Additionally, collectors cannot claim that failure to pay a debt will result in imprisonment, as debtors’ prisons no longer exist in the U.S.
If a consumer disputes a debt, the collector must verify it and provide documentation upon request. Continuing collection efforts without verification is a violation, and consumers misled by false representations can seek damages.
Unfair Practices
Debt collectors cannot impose unauthorized fees, interest, or charges not specified in the original agreement or state law. For example, if a contract does not include collection fees, they cannot be added arbitrarily.
Processing postdated checks before the agreed-upon date is also prohibited. Collectors cannot falsely claim the right to seize property without legal authority or misrepresent their ability to take wages, homes, or vehicles without a court order.
Deceptive mailing practices, such as sending documents that mimic legal notices or government correspondence, are banned. Consumers who experience unfair collection practices can file complaints with the Consumer Financial Protection Bureau (CFPB) or take legal action.
Enforcement Mechanisms
The Federal Trade Commission (FTC) and the CFPB oversee debt collection practices. The CFPB, established under the Dodd-Frank Act, investigates complaints, conducts examinations, and issues fines for noncompliance. The FTC enforces the FDCPA and collaborates with state attorneys general to prosecute violators.
Regulatory actions include administrative penalties, consent orders, and civil fines. The CFPB has authority to subpoena records and impose monetary penalties. For instance, in 2020, it fined Afni, Inc. $500,000 for failing to properly investigate consumer disputes.
State attorneys general also litigate against violators, and consumers can file class action lawsuits to challenge widespread misconduct. Courts can issue injunctions to halt unlawful practices and award damages to affected consumers.
Remedies for Violations
Consumers subjected to unlawful collection practices can sue for damages in federal or state court. The FDCPA allows claims for actual damages, statutory damages up to $1,000 per lawsuit, and attorney’s fees.
Class action lawsuits provide additional recourse, with statutory damages capped at $500,000 or 1% of the collector’s net worth, whichever is lower. Courts may also issue injunctions to prevent further violations and mandate changes in collection practices.
When to Seek Legal Help
Legal assistance is advisable for serious violations such as persistent harassment, false legal threats, or attempts to collect non-existent debts. Consumers receiving fraudulent court notices or misleading settlement offers should consult an attorney.
Legal help is especially important in lawsuits from debt buyers or cases involving inaccurate credit reporting. Attorneys can dispute wrongful credit entries under the Fair Credit Reporting Act (FCRA) and challenge debt collection lawsuits, often exposing incomplete documentation or expired statutes of limitations. Legal representation can also facilitate settlements or counterclaims against collectors violating the FDCPA.
https://www.fdic.gov/consumer-compliance/consumer-lending-compliancehttps://legalclarity.org/15-usc-169-debt-collection-rules-and-consumer-protections/
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