Banks; predatory Tactics vs Students and Former Students

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Section 803(5) defines "debt" as a consumer's "obligation . . . to pay money arising out of a transaction 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.

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(c) State and federal officials. Section 803(6)(C) provides that "debt collector" does not include any state or federal employee "to the extent that collecting or attempting to collect any debt is in the performance of his official duties."

The exemption applies only to such governmental employees in the performance of their "official duties" and, therefore, does not apply to an attorney employed by a county government who also collects bad checks for local merchants where that activity is outside his official duties. [53 Fed. Reg. 50103]

The exemption includes a state educational agency that is engaged in the collection of student loans.

(d) Process servers. Section 803(6)(D) provides that "debt collector" does not include "any person while serving or attempting to serve legal process on any other person in connection with the judicial enforcement of any debt."

The exemption covers marshals, sheriffs, and any other process servers while conducting their normal duties relating to serving legal papers.

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