Section 1 Short title
This Act may be cited as the “Fair Debt Collections Practices Clarification Act of 2016”.
Fair Debt Collections Practices Clarification Act of 2016
A BILL
To amend the Fair Debt Collection Practices Act to prohibit a court from making an award of costs to a defendant except on a finding that an action was brought in bad faith.
Sec. 2 Clarification that no award of costs may be made against consumers except where action brought in bad faith
Section 813(a)(3) of the Fair Debt Collection Practices Act (15 U.S.C. 1692k(a)(3)) is amended by adding at the end the following: “A court may make an award of costs or attorney fees to the defendant only after finding that an action under this section was brought in bad faith and for the purpose of harassment, and may not make an award of costs or attorney fees otherwise.”.