15 U.S.C. § 1691e — Civil liability

Page 1632 TITLE 15—COMMERCE AND TRADE § 1691e this title any class of credit transactions within any State if it determines that under the law of that State that class of transactions is subject to requirements substantially similar to those imposed under this subchapter or that such law gives greater protection to the applicant, and that there is adequate provision for enforce- ment. Failure to comply with any requirement of such State law in any transaction so exempt- ed shall constitute a violation of this subchapter for the purposes of section 1691e of this title. (Pub. L. 90–321, title VII, § 705, as added Pub. L. 93–495, title V, § 503, Oct. 28, 1974, 88 Stat. 1523; amended Pub. L. 94–239, § 5, Mar. 23, 1976, 90 Stat. 253; Pub. L. 111–203, title X, § 1085(1), July 21, 2010, 124 Stat. 2083.) Editorial Notes AMENDMENTS 2010—Subsecs. (f), (g). Pub. L. 111–203 substituted ‘‘Bu- reau’’ for ‘‘Board’’ wherever appearing. 1976—Subsec. (e). Pub. L. 94–239, § 5(1), substituted provisions requiring an election of remedies in legal ac- tions involving the recovery of monetary damages, for provisions specifying a general election of remedies. Subsecs. (f), (g). Pub. L. 94–239, § 5(2), added subsecs. (f) and (g). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–239 effective Mar. 23, 1976, see section 708 of Pub. L. 90–321, set out as an Effective Date note under section 1691 of this title. § 1691e. Civil liability (a) Individual or class action for actual damages Any creditor who fails to comply with any re- quirement imposed under this subchapter shall be liable to the aggrieved applicant for any ac- tual damages sustained by such applicant acting either in an individual capacity or as a member of a class. (b) Recovery of punitive damages in individual and class action for actual damages; exemp- tions; maximum amount of punitive damages in individual actions; limitation on total re- covery in class actions; factors determining amount of award Any creditor, other than a government or gov- ernmental subdivision or agency, who fails to comply with any requirement imposed under this subchapter shall be liable to the aggrieved applicant for punitive damages in an amount not greater than $10,000, in addition to any ac- tual damages provided in subsection (a), except that in the case of a class action the total recov- ery under this subsection shall not exceed the lesser of $500,000 or 1 per centum of the net worth of the creditor. In determining the amount of such damages in any action, the court shall consider, among other relevant fac- tors, the amount of any actual damages award- ed, the frequency and persistence of failures of compliance by the creditor, the resources of the creditor, the number of persons adversely af- fected, and the extent to which the creditor’s failure of compliance was intentional. (c) Action for equitable and declaratory relief Upon application by an aggrieved applicant, the appropriate United States district court or any other court of competent jurisdiction may grant such equitable and declaratory relief as is necessary to enforce the requirements imposed under this subchapter. (d) Recovery of costs and attorney fees In the case of any successful action under sub- section (a), (b), or (c), the costs of the action, to- gether with a reasonable attorney’s fee as deter- mined by the court, shall be added to any dam- ages awarded by the court under such sub- section. (e) Good faith compliance with rule, regulation, or interpretation of Bureau or interpretation or approval by an official or employee of Bu- reau of Consumer Financial Protection duly authorized by Bureau No provision of this subchapter imposing li- ability shall apply to any act done or omitted in good faith in conformity with any official rule, regulation, or interpretation thereof by the Bu- reau or in conformity with any interpretation or approval by an official or employee of the Bu- reau of Consumer Financial Protection duly au- thorized by the Bureau to issue such interpreta- tions or approvals under such procedures as the Bureau may prescribe therefor, notwithstanding that after such act or omission has occurred, such rule, regulation, interpretation, or ap- proval is amended, rescinded, or determined by judicial or other authority to be invalid for any reason. (f) Jurisdiction of courts; time for maintenance of action; exceptions Any action under this section may be brought in the appropriate United States district court without regard to the amount in controversy, or in any other court of competent jurisdiction. No such action shall be brought later than 5 years after the date of the occurrence of the violation, except that— (1) whenever any agency having responsi- bility for administrative enforcement under section 1691c of this title commences an en- forcement proceeding within 5 years after the date of the occurrence of the violation, (2) whenever the Attorney General com- mences a civil action under this section within 5 years after the date of the occurrence of the violation, then any applicant who has been a victim of the discrimination which is the subject of such pro- ceeding or civil action may bring an action under this section not later than one year after the commencement of that proceeding or action. (g) Request by responsible enforcement agency to Attorney General for civil action The agencies having responsibility for admin- istrative enforcement under section 1691c of this title, if unable to obtain compliance with sec- tion 1691 of this title, are authorized to refer the Page 1633 TITLE 15—COMMERCE AND TRADE § 1691e 1 See References in Text note below. matter to the Attorney General with a rec- ommendation that an appropriate civil action be instituted. Each agency referred to in para- graphs (1), (2), and (9) of section 1691c(a) of this title shall refer the matter to the Attorney Gen- eral whenever the agency has reason to believe that 1 or more creditors has engaged in a pat- tern or practice of discouraging or denying ap- plications for credit in violation of section 1691(a) of this title. Each such agency may refer the matter to the Attorney General whenever the agency has reason to believe that 1 or more creditors has violated section 1691(a) of this title. (h) Authority for Attorney General to bring civil action; jurisdiction When a matter is referred to the Attorney General pursuant to subsection (g), or whenever he has reason to believe that one or more credi- tors are engaged in a pattern or practice in vio- lation of this subchapter, the Attorney General may bring a civil action in any appropriate United States district court for such relief as may be appropriate, including actual and puni- tive damages and injunctive relief. (i) Recovery under both subchapter and fair housing enforcement provisions prohibited for violation based on same transaction No person aggrieved by a violation of this sub- chapter and by a violation of section 3605 of title 42 shall recover under this subchapter and sec- tion 3612 1 of title 42, if such violation is based on the same transaction. (j) Discovery of creditor’s granting standards Nothing in this subchapter shall be construed to prohibit the discovery of a creditor’s credit granting standards under appropriate discovery procedures in the court or agency in which an action or proceeding is brought. (k) Notice to HUD of violations Whenever an agency referred to in paragraph (1), (2), or (3) 1 of section 1691c(a) of this title— (1) has reason to believe, as a result of re- ceiving a consumer complaint, conducting a consumer compliance examination, or other- wise, that a violation of this subchapter has occurred; (2) has reason to believe that the alleged vio- lation would be a violation of the Fair Hous- ing Act [42 U.S.C. 3601 et seq.]; and (3) does not refer the matter to the Attorney General pursuant to subsection (g), the agency shall notify the Secretary of Housing and Urban Development of the violation, and shall notify the applicant that the Secretary of Housing and Urban Development has been noti- fied of the alleged violation and that remedies for the violation may be available under the Fair Housing Act. (Pub. L. 90–321, title VII, § 706, as added Pub. L. 93–495, title V, § 503, Oct. 28, 1974, 88 Stat. 1524; amended Pub. L. 94–239, § 6, Mar. 23, 1976, 90 Stat. 253; Pub. L. 102–242, title II, § 223(a)–(c), Dec. 19, 1991, 105 Stat. 2306; Pub. L. 111–203, title X, § 1085(1), (5)–(7), July 21, 2010, 124 Stat. 2083, 2085.) Editorial Notes REFERENCES IN TEXT Section 3612 of title 42, referred to in subsec. (i), which related to enforcement of the Fair Housing Act (42 U.S.C. 3601 et seq.) by private persons, was repealed by Pub. L. 100–430, § 8(2), Sept. 13, 1988, 102 Stat. 1625. See section 3613 of Title 42, The Public Health and Wel- fare. Paragraph (1), (2), or (3) of section 1691c(a) of this title, referred to in subsec. (k), probably means par. (1), (2), or (3) of section 1691c(a) of this title prior to repeal of pars. (1) and (2), enactment of new pars. (1) and (9), and redesignation of par. (3) as (2) by Pub. L. 111–203, title X, § 1085(4)(A)(ii)–(vi), July 21, 2010, 124 Stat. 2084. The Fair Housing Act, referred to in subsec. (k), is title VIII of Pub. L. 90–284, Apr. 11, 1968, 82 Stat. 81, which is classified principally to subchapter I (§ 3601 et seq.) of chapter 45 of Title 42. For complete classifica- tion of this Act to the Code, see Short Title note set out under section 3601 of Title 42 and Tables. AMENDMENTS 2010—Subsec. (e). Pub. L. 111–203, § 1085(5)(B), sub- stituted ‘‘Bureau of Consumer Financial Protection’’ for ‘‘Federal Reserve System’’ in text. Pub. L. 111–203, § 1085(5)(A), which directed amend- ment of ‘‘subsection heading’’ by substituting ‘‘Bu- reau’’ for ‘‘Board’’ wherever appearing and ‘‘Bureau of Consumer Financial Protection’’ for ‘‘Federal Reserve System’’, was executed by making the substitutions in heading that had been supplied editorially, to reflect the probable intent of Congress. Pub. L. 111–203, § 1085(1), substituted ‘‘Bureau’’ for ‘‘Board’’ wherever appearing. Subsec. (f). Pub. L. 111–203, § 1085(7), substituted ‘‘5 years after’’ for ‘‘two years from’’ wherever appearing. Subsec. (g). Pub. L. 111–203, § 1085(6), substituted ‘‘(9)’’ for ‘‘(3)’’. 1991—Subsec. (g). Pub. L. 102–242, § 223(a), inserted at end ‘‘Each agency referred to in paragraphs (1), (2), and (3) of section 1691c(a) of this title shall refer the matter to the Attorney General whenever the agency has rea- son to believe that 1 or more creditors has engaged in a pattern or practice of discouraging or denying appli- cations for credit in violation of section 1691(a) of this title. Each such agency may refer the matter to the At- torney General whenever the agency has reason to be- lieve that 1 or more creditors has violated section 1691(a) of this title.’’ Subsec. (h). Pub. L. 102–242, § 223(b), inserted ‘‘actual and punitive damages and’’ after ‘‘be appropriate, in- cluding’’. Subsec. (k). Pub. L. 102–242, § 223(c), added subsec. (k). 1976—Subsec. (a). Pub. L. 94–239 substituted reference to member for reference to representative. Subsec. (b). Pub. L. 94–239 inserted provisions exempt- ing government or governmental subdivision or agency from requirements of this subchapter, incorporated provisions contained in former subsec. (c) relating to recovery in class actions and, as incorporated, raised the total amount of recovery under a class action from $100,000 to $500,000. Subsec. (c). Pub. L. 94–239 redesignated subsec. (d) as (c) and specified United States district court or other court of competent jurisdiction as court in which to bring action, and substituted provisions authorizing such court to grant equitable and declaratory relief, for provisions authorizing civil actions for preventive re- lief. Provisions of former subsec. (c) were incorporated into present subsec. (b) and amended. Subsec. (d). Pub. L. 94–239 redesignated subsec. (e) as (d) and made minor changes in phraseology. Former subsec. (d) redesignated (c) and amended. Subsec. (e). Pub. L. 94–239 redesignated subsec. (f) as (e) and inserted reference to officially promulgated rule, regulation, or interpretation and provisions relat- ing to approval and interpretations by an official or employee of the Federal Reserve System duly author- Page 1634 TITLE 15—COMMERCE AND TRADE § 1691f ized by the Board. Former subsec. (e) redesignated (d) and amended. Subsec. (f). Pub. L. 94–239 redesignated subsec. (g) as (f) and inserted provisions which substituted a two year limitation for one year limitation and provisions ex- tending time in which to bring action under enumer- ated conditions. Former subsec. (f) redesignated (e) and amended. Subsecs. (g) to (j). Pub. L. 94–239 added subsecs. (g) to (j). Former subsec. (g) redesignated (f) and amended. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. EFFECTIVE DATE OF 1976 AMENDMENT Amendment by Pub. L. 94–239 effective Mar. 23, 1976, see section 708 of Pub. L. 90–321, set out as an Effective Date note under section 1691 of this title. § 1691f. Annual reports to Congress; contents Each year, the Bureau and the Attorney Gen- eral shall, respectively, make reports to the Congress concerning the administration of their functions under this subchapter, including such recommendations as the Bureau and the Attor- ney General, respectively, deem necessary or ap- propriate. In addition, each report of the Bureau shall include its assessment of the extent to which compliance with the requirements of this subchapter is being achieved, and a summary of the enforcement actions taken by each of the agencies assigned administrative enforcement responsibilities under section 1691c of this title. (Pub. L. 90–321, title VII, § 707, as added Pub. L. 94–239, § 7, Mar. 23, 1976, 90 Stat. 255; amended Pub. L. 96–221, title VI, § 610(c), Mar. 31, 1980, 94 Stat. 174; Pub. L. 111–203, title X, § 1085(1), July 21, 2010, 124 Stat. 2083.) Editorial Notes AMENDMENTS 2010—Pub. L. 111–203 substituted ‘‘Bureau’’ for ‘‘Board’’ wherever appearing. 1980—Pub. L. 96–221 substituted ‘‘Each year’’ for ‘‘Not later than February 1 of each year after 1976’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2010 AMENDMENT Amendment by Pub. L. 111–203 effective on the des- ignated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees. EFFECTIVE DATE OF 1980 AMENDMENT Amendment by Pub. L. 96–221 effective on expiration of two years and six months after Mar. 31, 1980, with all regulations, forms, and clauses required to be pre- scribed to be promulgated at least one year prior to such effective date, and allowing any creditor to com- ply with any amendments, in accordance with the regu- lations, forms, and clauses prescribed by the Board prior to such effective date, see section 625 of Pub. L. 96–221, set out as a note under section 1602 of this title. EFFECTIVE DATE Section effective Mar. 23, 1976, see section 708 of Pub. L. 90–321, set out as a note under section 1691 of this title. SUBCHAPTER V—DEBT COLLECTION PRACTICES § 1692. Congressional findings and declaration of purpose (a) Abusive practices There is abundant evidence of the use of abu- sive, deceptive, and unfair debt collection prac- tices by many debt collectors. Abusive debt col- lection practices contribute to the number of personal bankruptcies, to marital instability, to the loss of jobs, and to invasions of individual privacy. (b) Inadequacy of laws Existing laws and procedures for redressing these injuries are inadequate to protect con- sumers. (c) Available non-abusive collection methods Means other than misrepresentation or other abusive debt collection practices are available for the effective collection of debts. (d) Interstate commerce Abusive debt collection practices are carried on to a substantial extent in interstate com- merce and through means and instrumentalities of such commerce. Even where abusive debt col- lection practices are purely intrastate in char- acter, they nevertheless directly affect inter- state commerce. (e) Purposes It is the purpose of this subchapter to elimi- nate abusive debt collection practices by debt collectors, to insure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged, and to promote consistent State action to pro- tect consumers against debt collection abuses. (Pub. L. 90–321, title VIII, § 802, as added Pub. L. 95–109, Sept. 20, 1977, 91 Stat. 874.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 90–321, title VIII, § 819, formerly § 818, as added by Pub. L. 95–109, Sept. 20, 1977, 91 Stat. 883, § 818; re- numbered § 819, Pub. L. 109–351, title VIII, § 801(a)(1), Oct. 13, 2006, 120 Stat. 2004, provided that: ‘‘This title [enacting this subchapter] takes effect upon the expira- tion of six months after the date of its enactment [Sept. 20, 1977], but section 809 [section 1692g of this title] shall apply only with respect to debts for which the initial attempt to collect occurs after such effec- tive date.’’ SHORT TITLE This subchapter known as the ‘‘Fair Debt Collection Practices Act’’, see Short Title note set out under sec- tion 1601 of this title. § 1692a. Definitions As used in this subchapter— (1) The term ‘‘Bureau’’ means the Bureau of Consumer Financial Protection. (2) The term ‘‘communication’’ means the conveying of information regarding a debt di- rectly or indirectly to any person through any medium. (3) The term ‘‘consumer’’ means any natural person obligated or allegedly obligated to pay any debt.