12 U.S.C. § 5563 — Hearings and adjudication proceedings

Page 1985 TITLE 12—BANKS AND BANKING § 5563 1 See References in Text note below. rial, tangible things, reports, answers to ques- tions, or transcripts of oral testimony given by any person in compliance with any civil inves- tigative demand, such person may file, in the district court of the United States for the judi- cial district within which the office of such cus- todian is situated, and serve upon such custo- dian, a petition for an order of such court re- quiring the performance by such custodian of any duty imposed upon him by this section or rule promulgated by the Bureau. (h) Jurisdiction of court (1) In general Whenever any petition is filed in any dis- trict court of the United States under this sec- tion, such court shall have jurisdiction to hear and determine the matter so presented, and to enter such order or orders as may be required to carry out the provisions of this section. (2) Appeal Any final order entered as described in para- graph (1) shall be subject to appeal pursuant to section 1291 of title 28. (Pub. L. 111–203, title X, § 1052, July 21, 2010, 124 Stat. 2019.) Editorial Notes REFERENCES IN TEXT This title, referred to in subsecs. (a)(1) and (b)(1), 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1955, known as the Consumer Financial Protection Act of 2010, which enacted this subchapter and enacted, amended, and repealed numerous other sections and notes in the Code. For complete classification of title X to the Code, see Short Title note set out under sec- tion 5301 of this title and Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the designated transfer date, see section 1058 of Pub. L. 111–203, set out as a note under section 5561 of this title. § 5563. Hearings and adjudication proceedings (a) In general The Bureau is authorized to conduct hearings and adjudication proceedings with respect to any person in the manner prescribed by chapter 5 of title 5 in order to ensure or enforce compli- ance with— (1) the provisions of this title,1 including any rules prescribed by the Bureau under this title; 1 and (2) any other Federal law that the Bureau is authorized to enforce, including an enumer- ated consumer law, and any regulations or order prescribed thereunder, unless such Fed- eral law specifically limits the Bureau from conducting a hearing or adjudication pro- ceeding and only to the extent of such limita- tion. (b) Special rules for cease-and-desist proceedings (1) Orders authorized (A) In general If, in the opinion of the Bureau, any cov- ered person or service provider is engaging or has engaged in an activity that violates a law, rule, or any condition imposed in writ- ing on the person by the Bureau, the Bureau may, subject to sections 5514, 5515, and 5516 of this title, issue and serve upon the cov- ered person or service provider a notice of charges in respect thereof. (B) Content of notice The notice under subparagraph (A) shall contain a statement of the facts consti- tuting the alleged violation or violations, and shall fix a time and place at which a hearing will be held to determine whether an order to cease and desist should issue against the covered person or service pro- vider, such hearing to be held not earlier than 30 days nor later than 60 days after the date of service of such notice, unless an ear- lier or a later date is set by the Bureau, at the request of any party so served. (C) Consent Unless the party or parties served under subparagraph (B) appear at the hearing per- sonally or by a duly authorized representa- tive, such person shall be deemed to have consented to the issuance of the cease-and- desist order. (D) Procedure In the event of consent under subpara- graph (C), or if, upon the record, made at any such hearing, the Bureau finds that any violation specified in the notice of charges has been established, the Bureau may issue and serve upon the covered person or service provider an order to cease and desist from the violation or practice. Such order may, by provisions which may be mandatory or otherwise, require the covered person or service provider to cease and desist from the subject activity, and to take affirmative ac- tion to correct the conditions resulting from any such violation. (2) Effectiveness of order A cease-and-desist order shall become effec- tive at the expiration of 30 days after the date of service of an order under paragraph (1) upon the covered person or service provider con- cerned (except in the case of a cease-and-desist order issued upon consent, which shall become effective at the time specified therein), and shall remain effective and enforceable as pro- vided therein, except to such extent as the order is stayed, modified, terminated, or set aside by action of the Bureau or a reviewing court. (3) Decision and appeal Any hearing provided for in this subsection shall be held in the Federal judicial district or in the territory in which the residence or prin- cipal office or place of business of the person is located unless the person consents to an- other place, and shall be conducted in accord- ance with the provisions of chapter 5 of title 5. After such hearing, and within 90 days after the Bureau has notified the parties that the case has been submitted to the Bureau for final decision, the Bureau shall render its deci- sion (which shall include findings of fact upon Page 1986 TITLE 12—BANKS AND BANKING § 5563 which its decision is predicated) and shall issue and serve upon each party to the pro- ceeding an order or orders consistent with the provisions of this section. Judicial review of any such order shall be exclusively as provided in this subsection. Unless a petition for review is timely filed in a court of appeals of the United States, as provided in paragraph (4), and thereafter until the record in the pro- ceeding has been filed as provided in para- graph (4), the Bureau may at any time, upon such notice and in such manner as the Bureau shall determine proper, modify, terminate, or set aside any such order. Upon filing of the record as provided, the Bureau may modify, terminate, or set aside any such order with permission of the court. (4) Appeal to court of appeals Any party to any proceeding under this sub- section may obtain a review of any order served pursuant to this subsection (other than an order issued with the consent of the person concerned) by the filing in the court of appeals of the United States for the circuit in which the principal office of the covered person is lo- cated, or in the United States Court of Appeals for the District of Columbia Circuit, within 30 days after the date of service of such order, a written petition praying that the order of the Bureau be modified, terminated, or set aside. A copy of such petition shall be forthwith transmitted by the clerk of the court to the Bureau, and thereupon the Bureau shall file in the court the record in the proceeding, as pro- vided in section 2112 of title 28. Upon the filing of such petition, such court shall have juris- diction, which upon the filing of the record shall except as provided in the last sentence of paragraph (3) be exclusive, to affirm, modify, terminate, or set aside, in whole or in part, the order of the Bureau. Review of such pro- ceedings shall be had as provided in chapter 7 of title 5. The judgment and decree of the court shall be final, except that the same shall be subject to review by the Supreme Court of the United States, upon certiorari, as provided in section 1254 of title 28. (5) No stay The commencement of proceedings for judi- cial review under paragraph (4) shall not, un- less specifically ordered by the court, operate as a stay of any order issued by the Bureau. (c) Special rules for temporary cease-and-desist proceedings (1) In general Whenever the Bureau determines that the violation specified in the notice of charges served upon a person, including a service pro- vider, pursuant to subsection (b), or the con- tinuation thereof, is likely to cause the person to be insolvent or otherwise prejudice the in- terests of consumers before the completion of the proceedings conducted pursuant to sub- section (b), the Bureau may issue a temporary order requiring the person to cease and desist from any such violation or practice and to take affirmative action to prevent or remedy such insolvency or other condition pending completion of such proceedings. Such order may include any requirement authorized under this part. Such order shall become effec- tive upon service upon the person and, unless set aside, limited, or suspended by a court in proceedings authorized by paragraph (2), shall remain effective and enforceable pending the completion of the administrative proceedings pursuant to such notice and until such time as the Bureau shall dismiss the charges specified in such notice, or if a cease-and-desist order is issued against the person, until the effective date of such order. (2) Appeal Not later than 10 days after the covered per- son or service provider concerned has been served with a temporary cease-and-desist order, the person may apply to the United States district court for the judicial district in which the residence or principal office or place of business of the person is located, or the United States District Court for the District of Columbia, for an injunction setting aside, limiting, or suspending the enforcement, oper- ation, or effectiveness of such order pending the completion of the administrative pro- ceedings pursuant to the notice of charges served upon the person under subsection (b), and such court shall have jurisdiction to issue such injunction. (3) Incomplete or inaccurate records (A) Temporary order If a notice of charges served under sub- section (b) specifies, on the basis of par- ticular facts and circumstances, that the books and records of a covered person or service provider are so incomplete or inac- curate that the Bureau is unable to deter- mine the financial condition of that person or the details or purpose of any transaction or transactions that may have a material ef- fect on the financial condition of that per- son, the Bureau may issue a temporary order requiring— (i) the cessation of any activity or prac- tice which gave rise, whether in whole or in part, to the incomplete or inaccurate state of the books or records; or (ii) affirmative action to restore such books or records to a complete and accu- rate state, until the completion of the pro- ceedings under subsection (b)(1). (B) Effective period Any temporary order issued under sub- paragraph (A)— (i) shall become effective upon service; and (ii) unless set aside, limited, or sus- pended by a court in proceedings under paragraph (2), shall remain in effect and enforceable until the earlier of— (I) the completion of the proceeding initiated under subsection (b) in connec- tion with the notice of charges; or (II) the date the Bureau determines, by examination or otherwise, that the books and records of the covered person or service provider are accurate and re- flect the financial condition thereof. Page 1987 TITLE 12—BANKS AND BANKING § 5564 1 See References in Text note below. (d) Special rules for enforcement of orders (1) In general The Bureau may in its discretion apply to the United States district court within the ju- risdiction of which the principal office or place of business of the person is located, for the enforcement of any effective and out- standing notice or order issued under this sec- tion, and such court shall have jurisdiction and power to order and require compliance herewith. (2) Exception Except as otherwise provided in this sub- section, no court shall have jurisdiction to af- fect by injunction or otherwise the issuance or enforcement of any notice or order or to re- view, modify, suspend, terminate, or set aside any such notice or order. (e) Rules The Bureau shall prescribe rules establishing such procedures as may be necessary to carry out this section. (Pub. L. 111–203, title X, § 1053, July 21, 2010, 124 Stat. 2025.) Editorial Notes REFERENCES IN TEXT This title, referred to in subsec. (a)(1), 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, see section 1058 of Pub. L. 111–203, set out as a note under section 5561 of this title. § 5564. Litigation authority (a) In general If any person violates a Federal consumer fi- nancial law, the Bureau may, subject to sections 5514, 5515, and 5516 of this title, commence a civil action against such person to impose a civil pen- alty or to seek all appropriate legal and equi- table relief including a permanent or temporary injunction as permitted by law. (b) Representation The Bureau may act in its own name and through its own attorneys in enforcing any pro- vision of this title,1 rules thereunder, or any other law or regulation, or in any action, suit, or proceeding to which the Bureau is a party. (c) Compromise of actions The Bureau may compromise or settle any ac- tion if such compromise is approved by the court. (d) Notice to the Attorney General (1) In general When commencing a civil action under Fed- eral consumer financial law, or any rule there- under, the Bureau shall notify the Attorney General and, with respect to a civil action against an insured depository institution or insured credit union, the appropriate pruden- tial regulator. (2) Notice and coordination (A) Notice of other actions In addition to any notice required under paragraph (1), the Bureau shall notify the Attorney General concerning any action, suit, or proceeding to which the Bureau is a party, except an action, suit, or proceeding that involves the offering or provision of consumer financial products or services. (B) Coordination In order to avoid conflicts and promote consistency regarding litigation of matters under Federal law, the Attorney General and the Bureau shall consult regarding the co- ordination of investigations and pro- ceedings, including by negotiating an agree- ment for coordination by not later than 180 days after the designated transfer date. The agreement under this subparagraph shall in- clude provisions to ensure that parallel in- vestigations and proceedings involving the Federal consumer financial laws are con- ducted in a manner that avoids conflicts and does not impede the ability of the Attorney General to prosecute violations of Federal criminal laws. (C) Rule of construction Nothing in this paragraph shall be con- strued to limit the authority of the Bureau under this title,1 including the authority to interpret Federal consumer financial law. (e) Appearance before the Supreme Court The Bureau may represent itself in its own name before the Supreme Court of the United States, provided that the Bureau makes a writ- ten request to the Attorney General within the 10-day period which begins on the date of entry of the judgment which would permit any party to file a petition for writ of certiorari, and the Attorney General concurs with such request or fails to take action within 60 days of the request of the Bureau. (f) Forum Any civil action brought under this title 1 may be brought in a United States district court or in any court of competent jurisdiction of a state in a district in which the defendant is located or resides or is doing business, and such court shall have jurisdiction to enjoin such person and to require compliance with any Federal consumer financial law. (g) Time for bringing action (1) In general Except as otherwise permitted by law or eq- uity, no action may be brought under this title 1 more than 3 years after the date of dis- covery of the violation to which an action re- lates. (2) Limitations under other Federal laws (A) In general An action arising under this title 1 does not include claims arising solely under enu- merated consumer laws.