---
kind: "section"
citation: "15 U.S.C. § 1692p"
title: "15"
title_heading: "Commerce and Trade"
number: "1692p"
heading: "Exception for certain bad check enforcement programs operated by private entities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/15/1692p"
units:
  - "Chapter 41 — Consumer Credit Protection"
  - "Subchapter V — Debt Collection Practices"
---

# §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-2), a private entity shall be excluded from the definition of a [debt collector](/usc/15/1692a.md?p=6), pursuant to the exception provided in [section 1692a(6) of this title](/usc/15/1692a.md?p=6), with respect to the operation by the entity of a program described in [paragraph (2)(A)](#a-2-A) under a contract described in [paragraph (2)(B)](#a-2-B).
  - (2) **Conditions of applicability—** [Paragraph (1)](#a-1) shall apply if—
    - (A) a [State](/usc/15/1692a.md?p=8) or district attorney establishes, within the jurisdiction of such [State](/usc/15/1692a.md?p=8) or district attorney and with respect to alleged bad check violations that do not involve a check described in [subsection (b)](#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](/usc/15/1692a.md?p=8) or district attorney and operates under the direction, supervision, and control of such [State](/usc/15/1692a.md?p=8) or district attorney, operates the pretrial diversion program described in [subparagraph (A)](#a-2-A); and
    - (C) in the course of performing duties delegated to it by a [State](/usc/15/1692a.md?p=8) or district attorney under the contract, the private entity referred to in [subparagraph (B)](#a-2-B)—
      - (i) complies with the penal laws of the [State](/usc/15/1692a.md?p=8);
      - (ii) conforms with the terms of the contract and directives of the [State](/usc/15/1692a.md?p=8) or district attorney;
      - (iii) does not exercise independent prosecutorial discretion;
      - (iv) contacts any alleged offender referred to in [subparagraph (A)](#a-2-A) for purposes of participating in a program referred to in such paragraph—
        - (I) only as a result of any determination by the [State](/usc/15/1692a.md?p=8) or district attorney that probable cause of a bad check violation under [State](/usc/15/1692a.md?p=8) penal law exists, and that contact with the alleged offender for purposes of participation in the program is appropriate; and
        - (II) the alleged offender has failed to pay the bad check after demand for payment, pursuant to [State](/usc/15/1692a.md?p=8) law, is made for payment of the check amount;
      - (v) includes as part of an initial written [communication](/usc/15/1692a.md?p=2) with an alleged offender a clear and conspicuous statement that—
        - (I) the alleged offender may dispute the validity of any alleged bad check violation;
        - (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](/usc/15/1681a.md?p=q-3), 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)](#a-2-C-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
      - (vi) charges only fees in connection with services under the contract that have been authorized by the contract with the [State](/usc/15/1692a.md?p=8) or district attorney.
- (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](/usc/15/1681a.md?p=r-4) by the [financial institution](/usc/15/1681a.md?p=t) holding such [account](/usc/15/1681a.md?p=r-4) without providing notice to the [person](/usc/15/1602.md?p=e) at the time the check was made, drawn, or delivered;
  - (4) a check for partial payment of a [debt](/usc/15/1692a.md?p=5) where the payee had previously accepted partial payment for such [debt](/usc/15/1692a.md?p=5);
  - (5) a check issued by a [person](/usc/15/1602.md?p=e) who was not competent, or was not of legal age, to enter into a legal contractual obligation at the time the check was made, drawn, or delivered; or
  - (6) a check issued to pay an obligation arising from a transaction that was illegal in the jurisdiction of the [State](/usc/15/1692a.md?p=8) or district attorney at the time the check was made, drawn, or delivered.
- (c) **Definitions—** For purposes of this section, the following definitions shall apply:
  - (1) **State or district attorney—** The term “[State](/usc/15/1692a.md?p=8) or district attorney” means the chief elected or appointed prosecuting attorney in a district, county (as defined in [section 2 of title 1](/usc/1/2.md)), municipality, or comparable jurisdiction, including [State](/usc/15/1692a.md?p=8) 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](/usc/15/1692a.md?p=8)’s attorneys, and who are responsible for the prosecution of [State](/usc/15/1692a.md?p=8) crimes and violations of jurisdiction-specific local ordinances.
  - (2) **Check—** The term “check” has the same meaning as in [section 5002(6) of title 12](/usc/12/5002.md?p=6).
  - (3) **Bad check violation—** The term “bad check violation” means a violation of the applicable [State](/usc/15/1692a.md?p=8) criminal law relating to the writing of dishonored checks.

## Source credit

(Pub. L. 90–321, title VIII, § 818, as added Pub. L. 109–351, title VIII, § 801(a)(2), Oct. 13, 2006, 120 Stat. 2004.)