18 U.S.C. § 894: Collection of extensions of…

Summary

Makes it a crime for anyone who knowingly helps or plans to use threats, force, or other extortionate methods to collect a loan or to punish someone for not paying. A person convicted can be fined under federal law, imprisoned for up to 20 years, or both. At trial, prosecutors can show that other loans by the same creditor were collected by extortion to prove an implied threat. If the facts at the time the loan was made match the circumstances in 892(b)(1) or 892(b)(2), and there is no direct proof of what the borrower believed, the court may allow evidence about the defendant’s reputation in the borrower’s community to show whether the collection words or actions were threats.

Title 18, §894

Crimes and Criminal Procedure, Source: USLM XML via OLRC

(a)Whoever knowingly participates in any way, or conspires to do so, in the use of any extortionate means

(1)to collect or attempt to collect any extension of credit, or

(2)to punish any person for the nonrepayment thereof,

shall be fined under this title or imprisoned not more than 20 years, or both.

(b)In any prosecution under this section, for the purpose of showing an implicit threat as a means of collection, evidence may be introduced tending to show that one or more extensions of credit by the creditor were, to the knowledge of the person against whom the implicit threat was alleged to have been made, collected or attempted to be collected by extortionate means or that the nonrepayment thereof was punished by extortionate means.

(c)In any prosecution under this section, if evidence has been introduced tending to show the existence, at the time the extension of credit in question was made, of the circumstances described in section 892(b)(1) or the circumstances described in section 892(b)(2), and direct evidence of the actual belief of the debtor as to the creditor’s collection practices is not available, then for the purpose of showing that words or other means of communication, shown to have been employed as a means of collection, in fact carried an express or implicit threat, the court may in its discretion allow evidence to be introduced tending to show the reputation of the defendant in any community of which the person against whom the alleged threat was made was a member at the time of the collection or attempt at collection.

Editorial Notes

Amendments

1994—Subsec. (a). Pub. L. 103–322 substituted “fined under this title” for “fined not more than $10,000” in concluding provisions.

§894 Collection of Extensions of Credit by Extortionate Means

Summary

Title 18, §894

Notes & Related Subsidiaries

Editorial Notes

Amendments

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