§ 1692p. Exception for certain bad check enforcement programs operated by private entities
(a)
In general
(1)
Treatment of certain private entities
Subject to paragraph (2), a private entity shall be excluded from the definition of a debt collector, pursuant to the exception provided in section
1692a
(6) of this title, with respect to the operation by the entity of a program described in paragraph (2)(A) under a contract described in paragraph (2)(B).
(2)
Conditions of applicability
Paragraph (1) shall apply if—
(A)
a State or district attorney establishes, within the jurisdiction of such State or district attorney and with respect to alleged bad check violations that do not involve a check described in subsection (b), a pretrial diversion program for alleged bad check offenders who agree to participate voluntarily in such program to avoid criminal prosecution;
(B)
a private entity, that is subject to an administrative support services contract with a State or district attorney and operates under the direction, supervision, and control of such State or district attorney, operates the pretrial diversion program described in subparagraph (A); and
(C)
in the course of performing duties delegated to it by a State or district attorney under the contract, the private entity referred to in subparagraph (B)—
(iv)
contacts any alleged offender referred to in subparagraph (A) for purposes of participating in a program referred to in such paragraph—
(v)
includes as part of an initial written communication with an alleged offender a clear and conspicuous statement that—
(II)
where the alleged offender knows, or has reasonable cause to believe, that the alleged bad check violation is the result of theft or forgery of the check, identity theft, or other fraud that is not the result of the conduct of the alleged offender, the alleged offender may file a crime report with the appropriate law enforcement agency; and
(III)
if the alleged offender notifies the private entity or the district attorney in writing, not later than 30 days after being contacted for the first time pursuant to clause (iv), that there is a dispute pursuant to this subsection, before further restitution efforts are pursued, the district attorney or an employee of the district attorney authorized to make such a determination makes a determination that there is probable cause to believe that a crime has been committed; and
(b)
Certain checks excluded
A check is described in this subsection if the check involves, or is subsequently found to involve—
(1)
a postdated check presented in connection with a payday loan, or other similar transaction, where the payee of the check knew that the issuer had insufficient funds at the time the check was made, drawn, or delivered;
(2)
a stop payment order where the issuer acted in good faith and with reasonable cause in stopping payment on the check;
(3)
a check dishonored because of an adjustment to the issuer’s account by the financial institution holding such account without providing notice to the person at the time the check was made, drawn, or delivered;
(4)
a check for partial payment of a debt where the payee had previously accepted partial payment for such debt;
(c)
Definitions
For purposes of this section, the following definitions shall apply:
(1)
State or district attorney
The term “State or district attorney” means the chief elected or appointed prosecuting attorney in a district, county (as defined in section
2 of title
1), municipality, or comparable jurisdiction, including State attorneys general who act as chief elected or appointed prosecuting attorneys in a district, county (as so defined), municipality or comparable jurisdiction, who may be referred to by a variety of titles such as district attorneys, prosecuting attorneys, commonwealth’s attorneys, solicitors, county attorneys, and state’s attorneys, and who are responsible for the prosecution of State crimes and violations of jurisdiction-specific local ordinances.