12 U.S.C. § 5517 — Limitations on authorities of the Bureau;

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— Page 1966 TITLE 12—BANKS AND BANKING § 5517 (I) only extends credit for the sale of nonfinancial goods or services, as de- scribed in subparagraph (A)(i); (II) retains such credit on its own ac- counts (except to sell or convey such debt that is delinquent or otherwise in default); and (III) meets the relevant industry size threshold to be a small business concern, based on annual receipts, pursuant to section 3 of the Small Business Act (15 U.S.C. 632) and the implementing rules thereunder. (iii) Initial year A merchant, retailer, or seller of non- financial goods or services shall be deemed to meet the relevant industry size thresh- old described in clause (ii)(III) during the first year of operations of that business concern if, during that year, the receipts of that business concern reasonably are ex- pected to meet that size threshold. (iv) Other standards for small business With respect to a merchant, retailer, or seller of nonfinancial goods or services that is a classified on a basis other than annual receipts for the purposes of section 3 of the Small Business Act (15 U.S.C. 632) and the implementing rules thereunder, such merchant, retailer, or seller shall be deemed to meet the relevant industry size threshold described in clause (ii)(III) if such merchant, retailer, or seller meets the relevant industry size threshold to be a small business concern based on the number of employees, or other such appli- cable measure, established under that Act [15 U.S.C. 631 et seq.]. (E) Exception from State enforcement To the extent that the Bureau may not ex- ercise authority under this subsection with respect to a merchant, retailer, or seller of nonfinancial goods or services, no action by a State attorney general or State regulator with respect to a claim made under this title 1 may be brought under subsection 5552(a) of this title, with respect to an activ- ity described in any of clauses (i) through (iii) of subparagraph (A) by such merchant, retailer, or seller of nonfinancial goods or services. (b) Exclusion for real estate brokerage activities (1) Real estate brokerage activities excluded Without limiting subsection (a), and except as permitted in paragraph (2), the Bureau may not exercise any rulemaking, supervisory, en- forcement, or other authority under this title 1 with respect to a person that is licensed or registered as a real estate broker or real es- tate agent, in accordance with State law, to the extent that such person— (A) acts as a real estate agent or broker for a buyer, seller, lessor, or lessee of real property; (B) brings together parties interested in the sale, purchase, lease, rental, or exchange of real property; (C) negotiates, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property (other than in connection with the provision of financing with respect to any such transaction); or (D) offers to engage in any activity, or act in any capacity, described in subparagraph (A), (B), or (C). (2) Description of activities The Bureau may exercise rulemaking, super- visory, enforcement, or other authority under this title 1 with respect to a person described in paragraph (1) when such person is— (A) engaged in an activity of offering or providing any consumer financial product or service, except that the Bureau may exercise such authority only with respect to that ac- tivity; or (B) otherwise subject to any enumerated consumer law or any law for which authori- ties are transferred under subtitle F or H, but the Bureau may exercise such authority only with respect to that law. (c) Exclusion for manufactured home retailers and modular home retailers (1) In general The Director may not exercise any rule- making, supervisory, enforcement, or other authority over a person to the extent that— (A) such person is not described in para- graph (2); and (B) such person— (i) acts as an agent or broker for a buyer or seller of a manufactured home or a modular home; (ii) facilitates the purchase by a con- sumer of a manufactured home or modular home, by negotiating the purchase price or terms of the sales contract (other than providing financing with respect to such transaction); or (iii) offers to engage in any activity de- scribed in clause (i) or (ii). (2) Description of activities A person is described in this paragraph to the extent that such person is engaged in the offering or provision of any consumer finan- cial product or service or is otherwise subject to any enumerated consumer law or any law for which authorities are transferred under subtitle F or H. (3) Definitions For purposes of this subsection, the fol- lowing definitions shall apply: (A) Manufactured home The term ‘‘manufactured home’’ has the same meaning as in section 5402 of title 42. (B) Modular home The term ‘‘modular home’’ means a house built in a factory in 2 or more modules that meet the State or local building codes where the house will be located, and where such modules are transported to the building site, installed on foundations, and completed. (d) Exclusion for accountants and tax preparers (1) In general Except as permitted in paragraph (2), the Bureau may not exercise any rulemaking, su- Page 1967 TITLE 12—BANKS AND BANKING § 5517 2 So in original. Probably should be followed by a comma. pervisory, enforcement, or other authority over— (A) any person that is a certified public ac- countant, permitted to practice as a cer- tified public accounting firm, or certified or licensed for such purpose by a State, or any individual who is employed by or holds an ownership interest with respect to a person described in this subparagraph, when such person is performing or offering to perform— (i) customary and usual accounting ac- tivities, including the provision of ac- counting, tax, advisory, or other services that are subject to the regulatory author- ity of a State board of accountancy or a Federal authority; or (ii) other services that are incidental to such customary and usual accounting ac- tivities, to the extent that such incidental services are not offered or provided— (I) by the person separate and apart from such customary and usual account- ing activities; or (II) to consumers who are not receiving such customary and usual accounting ac- tivities; or (B) any person, other than a person de- scribed in subparagraph (A) 2 that performs income tax preparation activities for con- sumers. (2) Description of activities (A) In general Paragraph (1) shall not apply to any per- son described in paragraph (1)(A) or (1)(B) to the extent that such person is engaged in any activity which is not a customary and usual accounting activity described in para- graph (1)(A) or incidental thereto but which is the offering or provision of any consumer financial product or service, except to the extent that a person described in paragraph (1)(A) is engaged in an activity which is a customary and usual accounting activity de- scribed in paragraph (1)(A), or incidental thereto. (B) Not a customary and usual accounting activity For purposes of this subsection, extending or brokering credit is not a customary and usual accounting activity, or incidental thereto. (C) Rule of construction For purposes of subparagraphs (A) and (B), a person described in paragraph (1)(A) shall not be deemed to be extending credit, if such person is only extending credit directly to a consumer, exclusively for the purpose of en- abling such consumer to purchase services described in clause (i) or (ii) of paragraph (1)(A) directly from such person, and such credit is— (i) not subject to a finance charge; and (ii) not payable by written agreement in more than 4 installments. (D) Other limitations Paragraph (1) does not apply to any person described in paragraph (1)(A) or (1)(B) that is otherwise subject to any enumerated con- sumer law or any law for which authorities are transferred under subtitle F or H. (e) Exclusion for practice of law (1) In general Except as provided under paragraph (2), the Bureau may not exercise any supervisory or enforcement authority with respect to an ac- tivity engaged in by an attorney as part of the practice of law under the laws of a State in which the attorney is licensed to practice law. (2) Rule of construction Paragraph (1) shall not be construed so as to limit the exercise by the Bureau of any super- visory, enforcement, or other authority re- garding the offering or provision of a con- sumer financial product or service described in any subparagraph of section 5481(5) of this title— (A) that is not offered or provided as part of, or incidental to, the practice of law, oc- curring exclusively within the scope of the attorney-client relationship; or (B) that is otherwise offered or provided by the attorney in question with respect to any consumer who is not receiving legal advice or services from the attorney in connection with such financial product or service. (3) Existing authority Paragraph (1) shall not be construed so as to limit the authority of the Bureau with respect to any attorney, to the extent that such attor- ney is otherwise subject to any of the enumer- ated consumer laws or the authorities trans- ferred under subtitle F or H. (f) Exclusion for persons regulated by a State in- surance regulator (1) In general No provision of this title 1 shall be construed as altering, amending, or affecting the author- ity of any State insurance regulator to adopt rules, initiate enforcement proceedings, or take any other action with respect to a person regulated by a State insurance regulator. Ex- cept as provided in paragraph (2), the Bureau shall have no authority to exercise any power to enforce this title 1 with respect to a person regulated by a State insurance regulator. (2) Description of activities Paragraph (1) does not apply to any person described in such paragraph to the extent that such person is engaged in the offering or provi- sion of any consumer financial product or service or is otherwise subject to any enumer- ated consumer law or any law for which au- thorities are transferred under subtitle F or H. (3) State insurance authority under Gramm- Leach-Bliley Notwithstanding paragraph (2), the Bureau shall not exercise any authorities that are granted a State insurance authority under sec- tion 6805(a)(6) of title 15 with respect to a per- son regulated by a State insurance authority. Page 1968 TITLE 12—BANKS AND BANKING § 5517 (g) Exclusion for employee benefit and com- pensation plans and certain other arrange- ments under title 26 (1) Preservation of authority of other agencies No provision of this title 1 shall be construed as altering, amending, or affecting the author- ity of the Secretary of the Treasury, the Sec- retary of Labor, or the Commissioner of Inter- nal Revenue to adopt regulations, initiate en- forcement proceedings, or take any actions with respect to any specified plan or arrange- ment. (2) Activities not constituting the offering or provision of any consumer financial prod- uct or service For purposes of this title,1 a person shall not be treated as having engaged in the offering or provision of any consumer financial product or service solely because such person is— (A) a specified plan or arrangement; (B) engaged in the activity of establishing or maintaining, for the benefit of employees of such person (or for members of an em- ployee organization), any specified plan or arrangement; or (C) engaged in the activity of establishing or maintaining a qualified tuition program under section 529(b)(1) of title 26 offered by a State or other prepaid tuition program of- fered by a State. (3) Limitation on Bureau authority (A) In general Except as provided under subparagraphs (B) and (C), the Bureau may not exercise any rulemaking or enforcement authority with respect to products or services that relate to any specified plan or arrangement. (B) Bureau action pursuant to agency re- quest (i) Agency request The Secretary and the Secretary of Labor may jointly issue a written request to the Bureau regarding implementation of appropriate consumer protection stand- ards under this title 1 with respect to the provision of services relating to any speci- fied plan or arrangement. (ii) Agency response In response to a request by the Bureau, the Secretary and the Secretary of Labor shall jointly issue a written response, not later than 90 days after receipt of such re- quest, to grant or deny the request of the Bureau regarding implementation of ap- propriate consumer protection standards under this title 1 with respect to the provi- sion of services relating to any specified plan or arrangement. (iii) Scope of Bureau action Subject to a request or response pursu- ant to clause (i) or clause (ii) by the agen- cies made under this subparagraph, the Bureau may exercise rulemaking author- ity, and may act to enforce a rule pre- scribed pursuant to such request or re- sponse, in accordance with the provisions of this title.1 A request or response made by the Secretary and the Secretary of Labor under this subparagraph shall de- scribe the basis for, and scope of, appro- priate consumer protection standards to be implemented under this title 1 with respect to the provision of services relating to any specified plan or arrangement. (C) Description of products or services To the extent that a person engaged in providing products or services relating to any specified plan or arrangement is subject to any enumerated consumer law or any law for which authorities are transferred under subtitle F or H, subparagraph (A) shall not apply with respect to that law. (4) Specified plan or arrangement For purposes of this subsection, the term ‘‘specified plan or arrangement’’ means any plan, account, or arrangement described in section 220, 223, 401(a), 403(a), 403(b), 408, 408A, 529, 529A, or 530 of title 26, or any employee benefit or compensation plan or arrangement, including a plan that is subject to title I of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1001 et seq.], or any prepaid tui- tion program offered by a State. (h) Persons regulated by a State securities com- mission (1) In general No provision of this title 1 shall be construed as altering, amending, or affecting the author- ity of any securities commission (or any agen- cy or office performing like functions) of any State to adopt rules, initiate enforcement pro- ceedings, or take any other action with re- spect to a person regulated by any securities commission (or any agency or office per- forming like functions) of any State. Except as permitted in paragraph (2) and subsection (f), the Bureau shall have no authority to exer- cise any power to enforce this title 1 with re- spect to a person regulated by any securities commission (or any agency or office per- forming like functions) of any State, but only to the extent that the person acts in such reg- ulated capacity. (2) Description of activities Paragraph (1) shall not apply to any person to the extent such person is engaged in the of- fering or provision of any consumer financial product or service, or is otherwise subject to any enumerated consumer law or any law for which authorities are transferred under sub- title F or H. (i) Exclusion for persons regulated by the Com- mission (1) In general No provision of this title 1 may be construed as altering, amending, or affecting the author- ity of the Commission to adopt rules, initiate enforcement proceedings, or take any other action with respect to a person regulated by the Commission. The Bureau shall have no au- thority to exercise any power to enforce this title 1 with respect to a person regulated by the Commission. Page 1969 TITLE 12—BANKS AND BANKING § 5517 (2) Consultation and coordination Notwithstanding paragraph (1), the Commis- sion shall consult and coordinate, where fea- sible, with the Bureau with respect to any rule (including any advance notice of proposed rulemaking) regarding an investment product or service that is the same type of product as, or that competes directly with, a consumer fi- nancial product or service that is subject to the jurisdiction of the Bureau under this title 1 or under any other law. In carrying out this paragraph, the agencies shall negotiate an agreement to establish procedures for such co- ordination, including procedures for providing advance notice to the Bureau when the Com- mission is initiating a rulemaking. (j) Exclusion for persons regulated by the Com- modity Futures Trading Commission (1) In general No provision of this title 1 shall be construed as altering, amending, or affecting the author- ity of the Commodity Futures Trading Com- mission to adopt rules, initiate enforcement proceedings, or take any other action with re- spect to a person regulated by the Commodity Futures Trading Commission. The Bureau shall have no authority to exercise any power to enforce this title 1 with respect to a person regulated by the Commodity Futures Trading Commission. (2) Consultation and coordination Notwithstanding paragraph (1), the Com- modity Futures Trading Commission shall consult and coordinate with the Bureau with respect to any rule (including any advance no- tice of proposed rulemaking) regarding a prod- uct or service that is the same type of product as, or that competes directly with, a consumer financial product or service that is subject to the jurisdiction of the Bureau under this title 1 or under any other law. (k) Exclusion for persons regulated by the Farm Credit Administration (1) In general No provision of this title 1 shall be construed as altering, amending, or affecting the author- ity of the Farm Credit Administration to adopt rules, initiate enforcement proceedings, or take any other action with respect to a per- son regulated by the Farm Credit Administra- tion. The Bureau shall have no authority to exercise any power to enforce this title 1 with respect to a person regulated by the Farm Credit Administration. (2) Definition For purposes of this subsection, the term ‘‘person regulated by the Farm Credit Admin- istration’’ means any Farm Credit System in- stitution that is chartered and subject to the provisions of the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.). (l) Exclusion for activities relating to charitable contributions (1) In general The Director and the Bureau may not exer- cise any rulemaking, supervisory, enforce- ment, or other authority, including authority to order penalties, over any activities related to the solicitation or making of voluntary contributions to a tax-exempt organization as recognized by the Internal Revenue Service, by any agent, volunteer, or representative of such organizations to the extent the organiza- tion, agent, volunteer, or representative there- of is soliciting or providing advice, informa- tion, education, or instruction to any donor or potential donor relating to a contribution to the organization. (2) Limitation The exclusion in paragraph (1) does not apply to other activities not described in para- graph (1) that are the offering or provision of any consumer financial product or service, or are otherwise subject to any enumerated con- sumer law or any law for which authorities are transferred under subtitle F or H. (m) Insurance The Bureau may not define as a financial product or service, by regulation or otherwise, engaging in the business of insurance. (n) Limited authority of the Bureau Notwithstanding subsections (a) through (h) and (l), a person subject to or described in one or more of such provisions— (1) may be a service provider; and (2) may be subject to requests from, or re- quirements imposed by, the Bureau regarding information in order to carry out the respon- sibilities and functions of the Bureau and in accordance with section 5512, 5562, or 5563 of this title. (o) No authority to impose usury limit No provision of this title 1 shall be construed as conferring authority on the Bureau to estab- lish a usury limit applicable to an extension of credit offered or made by a covered person to a consumer, unless explicitly authorized by law. (p) Attorney General No provision of this title,1 including section 5514(c)(1) of this title, shall affect the authori- ties of the Attorney General under otherwise ap- plicable provisions of law. (q) Secretary of the Treasury No provision of this title 1 shall affect the au- thorities of the Secretary, including with re- spect to prescribing rules, initiating enforce- ment proceedings, or taking other actions with respect to a person that performs income tax preparation activities for consumers. (r) Deposit insurance and share insurance Nothing in this title 1 shall affect the author- ity of the Corporation under the Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.] or the Na- tional Credit Union Administration Board under the Federal Credit Union Act [12 U.S.C. 1751 et seq.] as to matters related to deposit insurance and share insurance, respectively. (s) Fair Housing Act No provision of this title 1 shall be construed as affecting any authority arising under the Fair Housing Act [42 U.S.C. 3601 et seq.]. (Pub. L. 111–203, title X, § 1027, July 21, 2010, 124 Stat. 1995; Pub. L. 113–295, div. B, title I, § 102(e)(7), Dec. 19, 2014, 128 Stat. 4062.) Page 1970 TITLE 12—BANKS AND BANKING § 5518 Editorial Notes REFERENCES IN TEXT This title, where footnoted in text, is title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955, known as the Consumer Financial Protection Act of 2010, which en- acted 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. Subtitle F, referred to in text, 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 text, is subtitle H (§§ 1081–1100H) of title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 2080. For complete classification of subtitle H to the Code, see Tables. The Small Business Act, referred to in subsec. (a)(2)(D)(iv), is Pub. L. 85–536, § 2(1 et seq.), July 18, 1958, 72 Stat. 384, which is classified generally to chapter 14A (§ 631 et seq.) of Title 15, Commerce and Trade. For com- plete classification of this Act to the Code, see Short Title note set out under section 631 of Title 15 and Ta- bles. The Employee Retirement Income Security Act of 1974, referred to in subsec. (g)(4), is Pub. L. 93–406, Sept. 2, 1974, 88 Stat. 829. Title I of the Act is classified gen- erally to subchapter I (§ 1001 et seq.) of chapter 18 of Title 29, Labor. For complete classification of this Act to the Code, see Short Title note set out under section 1001 of Title 29 and Tables. The Farm Credit Act of 1971, referred to in subsec. (k)(2), is Pub. L. 92–181, Dec. 10, 1971, 85 Stat. 583, which is classified principally to chapter 23 (§ 2001 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2001 of this title and Tables. The Federal Deposit Insurance Act, referred to in subsec. (r), is act Sept. 21, 1950, ch. 967, § 2, 64 Stat. 873, which is classified generally to chapter 16 (§ 1811 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 1811 of this title and Tables. The Federal Credit Union Act, referred to in subsec. (r), is act June 26, 1934, ch. 750, 48 Stat. 1216, which is classified principally to chapter 14 (§ 1751 et seq.) of this title. For complete classification of this Act to the Code, see section 1751 of this title and Tables. The Fair Housing Act, referred to in subsec. (s), 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, The Public Health and Welfare. For complete classification of this Act to the Code, see Short Title note set out under section 3601 of Title 42 and Tables. AMENDMENTS 2014—Subsec. (g)(4). Pub. L. 113–295 inserted ‘‘, 529A’’ after ‘‘529’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2014 AMENDMENT Amendment by Pub. L. 113–295 applicable to taxable years beginning after Dec. 31, 2014, see section 102(f)(1) of Pub. L. 113–295, set out as a note under section 552a of Title 5, Government Organization and Employees. 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. § 5518. Authority to restrict mandatory pre-dis- pute arbitration (a) Study and report The Bureau shall conduct a study of, and shall provide a report to Congress concerning, the use of agreements providing for arbitration of any future dispute between covered persons and con- sumers in connection with the offering or pro- viding of consumer financial products or serv- ices. (b) Further authority The Bureau, by regulation, may prohibit or impose conditions or limitations on the use of an agreement between a covered person and a consumer for a consumer financial product or service providing for arbitration of any future dispute between the parties, if the Bureau finds that such a prohibition or imposition of condi- tions or limitations is in the public interest and for the protection of consumers. The findings in such rule shall be consistent with the study con- ducted under subsection (a). (c) Limitation The authority described in subsection (b) may not be construed to prohibit or restrict a con- sumer from entering into a voluntary arbitra- tion agreement with a covered person after a dispute has arisen. (d) Effective date Notwithstanding any other provision of law, any regulation prescribed by the Bureau under subsection (b) shall apply, consistent with the terms of the regulation, to any agreement be- tween a consumer and a covered person entered into after the end of the 180-day period begin- ning on the effective date of the regulation, as established by the Bureau. (Pub. L. 111–203, title X, § 1028, July 21, 2010, 124 Stat. 2003.) 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. § 5519. Exclusion for auto dealers (a) Sale, servicing, and leasing of motor vehicles excluded Except as permitted in subsection (b), the Bu- reau may not exercise any rulemaking, super- visory, enforcement or any other authority, in- cluding any authority to order assessments, over a motor vehicle dealer that is predomi- nantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both. (b) Certain functions excepted Subsection (a) shall not apply to any person, to the extent that such person— (1) provides consumers with any services re- lated to residential or commercial mortgages or self-financing transactions involving real property; (2) operates a line of business— (A) that involves the extension of retail credit or retail leases involving motor vehi- cles; and