12 U.S.C. § 5516 — Other banks, savings associations, and

Page 1964 TITLE 12—BANKS AND BANKING § 5516 (a) instituting an appeal under this para- graph, as well as their officers and employ- ees. (F) Limitation The process provided in this paragraph shall not apply to a determination by a pru- dential regulator to appoint a conservator or receiver for an insured depository institu- tion or a liquidating agent for an insured credit union, as the case may be, or a deci- sion to take action pursuant to section 1831o of this title or section 1790a of this title, as applicable. (G) Effect on other authority Nothing in this section shall modify or limit the authority of the Bureau to inter- pret, or take enforcement action under, any Federal consumer financial law, or the au- thority of a prudential regulator to interpret or take enforcement action under any other provision of Federal law for safety and soundness purposes. (Pub. L. 111–203, title X, § 1025, July 21, 2010, 124 Stat. 1990.) Editorial Notes REFERENCES IN TEXT This title, referred to in subsec. (b)(4), is title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955, known as the Consumer Financial Protection Act of 2010, which enacted this subchapter and enacted, amended, and re- pealed numerous other sections and notes in the Code. For complete classification of title X to the Code, see Short Title note set out under section 5301 of this title and Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the designated transfer date, ex- cept that subsec. (e) of this section is effective July 21, 2010, see section 1029A of Pub. L. 111–203, set out as a note under section 5511 of this title. § 5516. Other banks, savings associations, and credit unions (a) Scope of coverage This section shall apply to any covered person that is— (1) an insured depository institution with total assets of $10,000,000,000 or less; or (2) an insured credit union with total assets of $10,000,000,000 or less. (b) Reports The Director may require reports from a per- son described in subsection (a), as necessary to support the role of the Bureau in implementing Federal consumer financial law, to support its examination activities under subsection (c), and to assess and detect risks to consumers and con- sumer financial markets. (1) Use of existing reports The Bureau shall, to the fullest extent pos- sible, use— (A) reports pertaining to a person de- scribed in subsection (a) that have been pro- vided or required to have been provided to a Federal or State agency; and (B) information that has been reported publicly. (2) Preservation of authority Nothing in this subsection may be construed as limiting the authority of the Director from requiring from a person described in sub- section (a), as permitted under paragraph (1), information owned or under the control of such person, regardless of whether such infor- mation is maintained, stored, or processed by another person. (3) Reports of tax law noncompliance The Bureau shall provide the Commissioner of Internal Revenue with any report of exam- ination or related information identifying pos- sible tax law noncompliance. (c) Examinations (1) In general The Bureau may, at its discretion, include examiners on a sampling basis of the examina- tions performed by the prudential regulator to assess compliance with the requirements of Federal consumer financial law of persons de- scribed in subsection (a). (2) Agency coordination The prudential regulator shall— (A) provide all reports, records, and docu- mentation related to the examination proc- ess for any institution included in the sam- ple referred to in paragraph (1) to the Bureau on a timely and continual basis; (B) involve such Bureau examiner in the entire examination process for such person; and (C) consider input of the Bureau con- cerning the scope of an examination, con- duct of the examination, the contents of the examination report, the designation of mat- ters requiring attention, and examination ratings. (d) Enforcement (1) In general Except for requiring reports under sub- section (b), the prudential regulator is author- ized to enforce the requirements of Federal consumer financial laws and, with respect to a covered person described in subsection (a), shall have exclusive authority (relative to the Bureau) to enforce such laws. (2) Coordination with prudential regulator (A) Referral When the Bureau has reason to believe that a person described in subsection (a) has engaged in a material violation of a Federal consumer financial law, the Bureau shall no- tify the prudential regulator in writing and recommend appropriate action to respond. (B) Response Upon receiving a recommendation under subparagraph (A), the prudential regulator shall provide a written response to the Bu- reau not later than 60 days thereafter. (e) Service providers A service provider to a substantial number of persons described in subsection (a) shall be sub- Page 1965 TITLE 12—BANKS AND BANKING § 5517 1 See References in Text note below. ject to the authority of the Bureau under sec- tion 5515 of this title to the same extent as if the Bureau were an appropriate Federal bank agen- cy under section 1867(c) of this title. When con- ducting any examination or requiring any re- port from a service provider subject to this sub- section, the Bureau shall coordinate with the appropriate prudential regulator. (Pub. L. 111–203, title X, § 1026, July 21, 2010, 124 Stat. 1993.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the designated transfer date, see section 1029A of Pub. L. 111–203, set out as a note under section 5511 of this title. § 5517. Limitations on authorities of the Bureau; preservation of authorities (a) Exclusion for merchants, retailers, and other sellers of nonfinancial goods or services (1) Sale or brokerage of nonfinancial good or service The Bureau may not exercise any rule- making, supervisory, enforcement or other au- thority under this title 1 with respect to a per- son who is a merchant, retailer, or seller of any nonfinancial good or service and is en- gaged in the sale or brokerage of such non- financial good or service, except to the extent that such person is engaged in offering or pro- viding any consumer financial product or serv- ice, or is otherwise subject to any enumerated consumer law or any law for which authorities are transferred under subtitle F or H. (2) Offering or provision of certain consumer financial products or services in connec- tion with the sale or brokerage of non- financial good or service (A) In general Except as provided in subparagraph (B), and subject to subparagraph (C), the Bureau may not exercise any rulemaking, super- visory, enforcement, or other authority under this title 1 with respect to a merchant, retailer, or seller of nonfinancial goods or services, but only to the extent that such person— (i) extends credit directly to a consumer, in a case in which the good or service being provided is not itself a consumer fi- nancial product or service (other than credit described in this subparagraph), ex- clusively for the purpose of enabling that consumer to purchase such nonfinancial good or service directly from the mer- chant, retailer, or seller; (ii) directly, or through an agreement with another person, collects debt arising from credit extended as described in clause (i); or (iii) sells or conveys debt described in clause (i) that is delinquent or otherwise in default. (B) Applicability Subparagraph (A) does not apply to any credit transaction or collection of debt, other than as described in subparagraph (C)(i), arising from a transaction described in subparagraph (A)— (i) in which the merchant, retailer, or seller of nonfinancial goods or services as- signs, sells or otherwise conveys to an- other person such debt owed by the con- sumer (except for a sale of debt that is de- linquent or otherwise in default, as de- scribed in subparagraph (A)(iii)); (ii) in which the credit extended signifi- cantly exceeds the market value of the nonfinancial good or service provided, or the Bureau otherwise finds that the sale of the nonfinancial good or service is done as a subterfuge, so as to evade or circumvent the provisions of this title; 1 or (iii) in which the merchant, retailer, or seller of nonfinancial goods or services regularly extends credit and the credit is subject to a finance charge. (C) Limitations (i) In general Notwithstanding subparagraph (B), sub- paragraph (A) shall apply with respect to a merchant, retailer, or seller of non- financial goods or services that is not en- gaged significantly in offering or providing consumer financial products or services. (ii) Exception Subparagraph (A) and clause (i) of this subparagraph do not apply to any mer- chant, retailer, or seller of nonfinancial goods or services— (I) if such merchant, retailer, or seller of nonfinancial goods or services is en- gaged in a transaction described in sub- paragraph (B)(i) or (B)(ii); or (II) to the extent that such merchant, retailer, or seller is subject to any enu- merated consumer law or any law for which authorities are transferred under subtitle F or H, but the Bureau may ex- ercise such authority only with respect to that law. (D) Rules (i) Authority of other agencies No provision of this title 1 shall be con- strued as modifying, limiting, or super- seding the supervisory or enforcement au- thority of the Federal Trade Commission or any other agency (other than the Bu- reau) with respect to credit extended, or the collection of debt arising from such ex- tension, directly by a merchant or retailer to a consumer exclusively for the purpose of enabling that consumer to purchase nonfinancial goods or services directly from the merchant or retailer. (ii) Small businesses A merchant, retailer, or seller of non- financial goods or services that would oth- erwise be subject to the authority of the Bureau solely by virtue of the application of subparagraph (B)(iii) shall be deemed not to be engaged significantly in offering or providing consumer financial products or services under subparagraph (C)(i), if such person—