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LAWDOG Fair Debt Collection Practices Act

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A portion of Section 803.......
Definitions

As used in this subchapter--
..........

(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.

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[FTC Staff Commentary]

Section 803(5) defines "debt" as a consumer's " obligation...to pay money arising out of a transaction in which the money, arising out of a transportation in which the money, property, insurance, or services (being purchased) are primarily for personal, family, or household purposes..."

1. Examples. The term includes:

*Overdue obligations such as medical bills that were originally payable in full within a certain time period (e.g., 30 days).

*A dishonored check that was tendered in payment for goods or services acquired or used primarily for personal, family, or household purposes.

A student loan, because the consumer is purchasing "services" (education) for personal use.
2. Exclusions.* The term does not include:

Unpaid taxes, fines, alimony, or tort claims, because they are not debts incurred from a "transportation (involving purchase of ) property or services for personal, family or household purposes."

*A credit card that a cardholder retains after the card issuer has demanded in return. The cardholder's account balance is the debt.

A non-pecuniary obligation of the consumer such as the responsibility to maintain adequate insurance on the collateral, because it does not involve an "obligation to pay money."

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LAWDOG Fair Debt Collection Practices Act

Section 803(5) defines "debt" as a consumer's " obligation...to pay money arising out of a transaction in which the money, arising out of a transportation in which the money, property, insurance, or services (being purchased) are primarily for personal, family, or household purposes..."

1. Examples. The term includes: *Overdue obligations such as medical bills that were originally payable in full within a certain time period (e.g., 30 days).

*A dishonored check that was tendered in payment for goods or services acquired or used primarily for personal, family, or household purposes.

*A student loan, because the consumer is purchasing "services" (education) for personal use. 2. Exclusions. The term does not include:

*A non-pecuniary obligation of the consumer such as the responsibility to maintain adequate insurance on the collateral, because it does not involve an "obligation ***to pay money." Previous Page

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1. Examples. The term includes:

*Overdue obligations such as medical bills that were originally payable in full within a certain time period (e.g., 30 days).

A student loan, because the consumer is purchasing "services" (education) for personal use.
2. Exclusions.* The term does not include:

A non-pecuniary obligation of the consumer such as the responsibility to maintain adequate insurance on the collateral, because it does not involve an "obligation to pay money."

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