12 U.S.C. § 5564 — Litigation authority

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. Page 1988 TITLE 12—BANKS AND BANKING § 5565 (B) Bureau authority In any action arising solely under an enu- merated consumer law, the Bureau may commence, defend, or intervene in the ac- tion in accordance with the requirements of that provision of law, as applicable. (C) Transferred authority In any action arising solely under laws for which authorities were transferred under subtitles F and H, the Bureau may com- mence, defend, or intervene in the action in accordance with the requirements of that provision of law, as applicable. (Pub. L. 111–203, title X, § 1054, July 21, 2010, 124 Stat. 2028.) Editorial Notes REFERENCES IN TEXT This title, referred to in subsecs. (b), (d)(2)(C), (f), and (g)(1), (2)(A), is title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955, known as the Consumer Financial Pro- tection Act of 2010, which enacted this subchapter and enacted, amended, and repealed numerous other sec- tions 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. Subtitle F, referred to in subsec. (g)(2)(C), is subtitle F (§§ 1061–1067) of title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 2035, which is classified generally to part F (§ 5581 et seq.) of this subchapter. For complete classi- fication of subtitle F to the Code, see Tables. Subtitle H, referred to in subsec. (g)(2)(C), is subtitle H (§§ 1081–1100H) of title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 2080. For complete classification of sub- title H to the Code, see 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. § 5565. Relief available (a) Administrative proceedings or court actions (1) Jurisdiction The court (or the Bureau, as the case may be) in an action or adjudication proceeding brought under Federal consumer financial law, shall have jurisdiction to grant any appro- priate legal or equitable relief with respect to a violation of Federal consumer financial law, including a violation of a rule or order pre- scribed under a Federal consumer financial law. (2) Relief Relief under this section may include, with- out limitation— (A) rescission or reformation of contracts; (B) refund of moneys or return of real property; (C) restitution; (D) disgorgement or compensation for un- just enrichment; (E) payment of damages or other monetary relief; (F) public notification regarding the viola- tion, including the costs of notification; (G) limits on the activities or functions of the person; and (H) civil money penalties, as set forth more fully in subsection (c). (3) No exemplary or punitive damages Nothing in this subsection shall be con- strued as authorizing the imposition of exem- plary or punitive damages. (b) Recovery of costs In any action brought by the Bureau, a State attorney general, or any State regulator to en- force any Federal consumer financial law, the Bureau, the State attorney general, or the State regulator may recover its costs in connection with prosecuting such action if the Bureau, the State attorney general, or the State regulator is the prevailing party in the action. (c) Civil money penalty in court and administra- tive actions (1) In general Any person that violates, through any act or omission, any provision of Federal consumer financial law shall forfeit and pay a civil pen- alty pursuant to this subsection. (2) Penalty amounts (A) First tier For any violation of a law, rule, or final order or condition imposed in writing by the Bureau, a civil penalty may not exceed $5,000 for each day during which such violation or failure to pay continues. (B) Second tier Notwithstanding paragraph (A), for any person that recklessly engages in a violation of a Federal consumer financial law, a civil penalty may not exceed $25,000 for each day during which such violation continues. (C) Third tier Notwithstanding subparagraphs (A) and (B), for any person that knowingly violates a Federal consumer financial law, a civil pen- alty may not exceed $1,000,000 for each day during which such violation continues. (3) Mitigating factors In determining the amount of any penalty assessed under paragraph (2), the Bureau or the court shall take into account the appro- priateness of the penalty with respect to— (A) the size of financial resources and good faith of the person charged; (B) the gravity of the violation or failure to pay; (C) the severity of the risks to or losses of the consumer, which may take into account the number of products or services sold or provided; (D) the history of previous violations; and (E) such other matters as justice may re- quire. (4) Authority to modify or remit penalty The Bureau may compromise, modify, or remit any penalty which may be assessed or had already been assessed under paragraph (2). The amount of such penalty, when finally de- termined, shall be exclusive of any sums owed by the person to the United States in connec- tion with the costs of the proceeding, and may