15 U.S.C. § 1691c — Administrative enforcement

Page 1626 TITLE 15—COMMERCE AND TRADE § 1691c 1 So in original. Probably should be ‘‘Consumer Financial Pro- tection Act of 2010’’. 2 So in original. Probably should be ‘‘, compliance with’’. Editorial Notes AMENDMENTS 2010—Pub. L. 111–203, § 1085(3)(A), substituted ‘‘Pro- mulgation of regulations by the Bureau’’ for ‘‘Regula- tions’’ in section catchline. Pub. L. 111–203, § 1085(1), substituted ‘‘Bureau’’ for ‘‘Board’’ wherever appearing. Subsecs. (a) to (e). Pub. L. 111–203, § 1085(3)(B)–(E), in subsec. (a), struck out ‘‘(a)’’ designation before ‘‘(1)’’, redesignated subsec. (a) pars. (1) to (5) as subsecs. (a) to (e), respectively, in subsec. (c) substituted ‘‘subsection (b)’’ for ‘‘paragraph (2)’’, and struck out former subsec. (b), which related to establishment of a Consumer Ad- visory Council to advise and consult with the Board. Subsecs. (f), (g). Pub. L. 111–203, § 1085(3)(F), added subsecs. (f) and (g). 1988—Subsec. (a). Pub. L. 100–533 amended subsec. (a) generally. Prior to amendment, subsec. (a) read as fol- lows: ‘‘The Board shall prescribe regulations to carry out the purposes of this subchapter. These regulations may contain but are not limited to such classifications, differentiation, or other provision, and may provide for such adjustments and exceptions for any class of trans- actions, as in the judgment of the Board are necessary or proper to effectuate the purposes of this subchapter, to prevent circumvention or evasion thereof, or to fa- cilitate or substantiate compliance therewith. In par- ticular, such regulations may exempt from one or more of the provisions of this subchapter any class of trans- actions not primarily for personal, family, or household purposes, if the Board makes an express finding that the application of such provision or provisions would not contribute substantially to carrying out the pur- poses of this subchapter. Such regulations shall be pre- scribed as soon as possible after the date of enactment of this Act, but in no event later than the effective date of this Act.’’ 1976—Pub. L. 94–239 designated existing provisions as subsec. (a), inserted provisions exempting from regula- tions of this subchapter any class of transactions not primarily for personal, family, or household purposes to be determined by the Board, and added subsec. (b). 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. § 1691c. Administrative enforcement (a) Enforcing agencies Subject to subtitle B of the Consumer Protec- tion Financial Protection Act of 2010 1 with 2 the requirements imposed under this subchapter shall be enforced under: (1) section 8 of the Federal Deposit Insur- ance Act [12 U.S.C. 1818], by the appropriate Federal banking agency, as defined in section 3(q) of the Federal Deposit Insurance Act (12 U.S.C. 1813(q)), with respect to— (A) national banks, Federal savings asso- ciations, and Federal branches and Federal agencies of foreign banks; (B) member banks of the Federal Reserve System (other than national banks), branches and agencies of foreign banks (other than Federal branches, Federal agen- cies, and insured State branches of foreign banks), commercial lending companies owned or controlled by foreign banks, and organizations operating under section 25 or 25A of the Federal Reserve Act [12 U.S.C. 601 et seq., 611 et seq.]; and (C) banks and State savings associations insured by the Federal Deposit Insurance Corporation (other than members of the Federal Reserve System), and insured State branches of foreign banks; (2) The Federal Credit Union Act [12 U.S.C. 1751 et seq.], by the Administrator of the Na- tional Credit Union Administration with re- spect to any Federal Credit Union. (3) Subtitle IV of title 49, by the Secretary of Transportation, with respect to all carriers subject to the jurisdiction of the Surface Transportation Board. (4) Part A of subtitle VII of title 49, by the Secretary of Transportation with respect to any air carrier or foreign air carrier subject to that part. (5) The Packers and Stockyards Act, 1921 [7 U.S.C. 181 et seq.] (except as provided in sec- tion 406 of that Act [7 U.S.C. 226, 227]), by the Secretary of Agriculture with respect to any activities subject to that Act. (6) The Farm Credit Act of 1971 [12 U.S.C. 2001 et seq.], by the Farm Credit Administra- tion with respect to any Federal land bank, Federal land bank association, Federal inter- mediate credit bank, and production credit as- sociation; (7) The Securities Exchange Act of 1934 [15 U.S.C. 78a et seq.], by the Securities and Ex- change Commission with respect to brokers and dealers; (8) The Small Business Investment Act of 1958 [15 U.S.C. 661 et seq.], by the Small Busi- ness Administration, with respect to small business investment companies; and (9) Subtitle E of the Consumer Financial Protection Act of 2010 [12 U.S.C. 5561 et seq.], by the Bureau, with respect to any person sub- ject to this subchapter. The terms used in paragraph (1) that are not de- fined in this subchapter or otherwise defined in section 3(s) of the Federal Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the meaning given to them in section 1(b) of the International Banking Act of 1978 (12 U.S.C. 3101). (b) Violations of subchapter deemed violations of preexisting statutory requirements; addi- tional agency powers For the purpose of the exercise by any agency referred to in subsection (a) of its powers under any Act referred to in that subsection, a viola- tion of any requirement imposed under this sub- chapter shall be deemed to be a violation of a re- quirement imposed under that Act. In addition to its powers under any provision of law specifi- cally referred to in subsection (a), each of the agencies referred to in that subsection may ex- ercise for the purpose of enforcing compliance with any requirement imposed under this sub- chapter, any other authority conferred on it by Page 1627 TITLE 15—COMMERCE AND TRADE § 1691c 3 See References in Text note below. law. The exercise of the authorities of any of the agencies referred to in subsection (a) for the purpose of enforcing compliance with any re- quirement imposed under this subchapter shall in no way preclude the exercise of such authori- ties for the purpose of enforcing compliance with any other provision of law not relating to the prohibition of discrimination on the basis of sex or marital status with respect to any aspect of a credit transaction. (c) Overall enforcement authority of Federal Trade Commission Except to the extent that enforcement of the requirements imposed under this subchapter is specifically committed to some other Govern- ment agency under any of paragraphs (1) through (8) of subsection (a), and subject to sub- title B of the Consumer Financial Protection Act of 2010, the Federal Trade Commission shall be authorized to enforce such requirements. For the purpose of the exercise by the Federal Trade Commission of its functions and powers under the Federal Trade Commission Act (15 U.S.C. 41 et seq.), a violation of any requirement imposed under this subchapter 3 shall be deemed a viola- tion of a requirement imposed under that Act. All of the functions and powers of the Federal Trade Commission under the Federal Trade Commission Act are available to the Federal Trade Commission to enforce compliance by any person with the requirements imposed under this subchapter, irrespective of whether that person is engaged in commerce or meets any other jurisdictional tests under the Federal Trade Commission Act, including the power to enforce any rule prescribed by the Bureau under this subchapter in the same manner as if the violation had been a violation of a Federal Trade Commission trade regulation rule. (d) Rules and regulations by enforcing agencies The authority of the Bureau to issue regula- tions under this subchapter does not impair the authority of any other agency designated in this section to make rules respecting its own proce- dures in enforcing compliance with require- ments imposed under this subchapter. (Pub. L. 90–321, title VII, § 704, as added Pub. L. 93–495, title V, § 503, Oct. 28, 1974, 88 Stat. 1522; amended Pub. L. 94–239, § 4, Mar. 23, 1976, 90 Stat. 253; Pub. L. 98–443, § 9(n), Oct. 4, 1984, 98 Stat. 1708; Pub. L. 101–73, title VII, § 744(m), Aug. 9, 1989, 103 Stat. 439; Pub. L. 102–242, title II, § 212(d), Dec. 19, 1991, 105 Stat. 2300; Pub. L. 102–550, title XVI, § 1604(a)(7), Oct. 28, 1992, 106 Stat. 4082; Pub. L. 104–88, title III, § 315, Dec. 29, 1995, 109 Stat. 948; Pub. L. 111–203, title X, § 1085(4), July 21, 2010, 124 Stat. 2084.) Editorial Notes REFERENCES IN TEXT The Consumer Financial Protection Act of 2010, re- ferred to in subsecs. (a) and (c), is title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955. Subtitles B (§§ 1021–1029A) and E (§§ 1051–1058) of the Act are classi- fied generally to parts B (§ 5511 et seq.) and E (§ 5561 et seq.), respectively, of subchapter V of chapter 53 of Title 12, Banks and Banking. For complete classifica- tion of subtitles B and E to the Code, see Tables. Sections 25 and 25A of the Federal Reserve Act, re- ferred to in subsec. (a)(1)(B), are classified to sub- chapters I (§ 601 et seq.) and II (§ 611 et seq.), respec- tively, of chapter 6 of Title 12, Banks and Banking. The Federal Credit Union Act, referred to in subsec. (a)(2), is act June 26, 1934, ch. 750, 48 Stat. 1216, which is classified generally to chapter 14 (§ 1751 et seq.) of Title 12. For complete classification of this Act to the Code, see section 1751 of Title 12 and Tables. The Packers and Stockyards Act, 1921, referred to in subsec. (a)(5), is act Aug. 15, 1921, ch. 64, 42 Stat. 159, which is classified to chapter 9 (§ 181 et seq.) of Title 7, Agriculture. For complete classification of this Act to the Code, see section 181 of Title 7 and Tables. The Farm Credit Act of 1971, referred to in subsec. (a)(6), is Pub. L. 92–181, Dec. 10, 1971, 85 Stat. 583, which is classified generally to chapter 23 (§ 2001 et seq.) of Title 12, Banks and Banking. For complete classifica- tion of this Act to the Code, see Short Title note set out under section 2001 of Title 12 and Tables. The Securities Exchange Act of 1934, referred to in subsec. (a)(7), is act June 6, 1934, ch. 404, 48 Stat. 881, which is classified principally to chapter 2B (§ 78a et seq.) of this title. For complete classification of this Act to the Code, see Codification note set out under section 78a of this title and Tables. The Small Business Investment Act of 1958, referred to in subsec. (a)(8), is Pub. L. 85–699, Aug. 21, 1958, 72 Stat. 689, which is classified principally to chapter 14B (§ 661 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 661 of this title and Tables. The Federal Trade Commission Act, referred to in subsec. (c), is act Sept. 26, 1914, ch. 311, 38 Stat. 717, which is classified generally to subchapter I (§ 41 et seq.) of chapter 2 of this title. For complete classifica- tion of this Act to the Code, see section 58 of this title and Tables. This subchapter, referred to in subsec. (c) before ‘‘shall be deemed’’, probably should have been a ref- erence to this title in the original, meaning title VII of Pub. L. 90–321 which is classified generally to this sub- chapter. CODIFICATION In subsec. (a)(3), ‘‘Subtitle IV of title 49’’ substituted for ‘‘The Acts to regulate commerce’’ on authority of Pub. L. 95–473, § 3(b), Oct. 17, 1978, 92 Stat. 1466, the first section of which enacted subtitle IV of Title 49, Trans- portation. In subsec. (a)(4), ‘‘Part A of subtitle VII of title 49’’ substituted for ‘‘The Federal Aviation Act of 1958 [49 App. U.S.C. 1301 et seq.]’’ and ‘‘that part’’ substituted for ‘‘that Act’’ on authority of Pub. L. 103–272, § 6(b), July 5, 1994, 108 Stat. 1378, the first section of which en- acted subtitles II, III, and V to X of Title 49. AMENDMENTS 2010—Subsec. (a). Pub. L. 111–203, § 1085(4)(A)(i), sub- stituted ‘‘Subject to subtitle B of the Consumer Protec- tion Financial Protection Act of 2010’’ for ‘‘Compli- ance’’ in introductory provisions. Subsec. (a)(1). Pub. L. 111–203, § 1085(4)(A)(ii), added par. (1) and struck out former par. (1) which read as fol- lows: ‘‘section 8 of the Federal Deposit Insurance Act, in the case of— ‘‘(A) national banks, and Federal branches and Fed- eral agencies of foreign banks, by the Office of the Comptroller of the Currency; ‘‘(B) member banks of the Federal Reserve System (other than national banks), branches and agencies of foreign banks (other than Federal branches, Federal agencies, and insured State branches of foreign banks), commercial lending companies owned or con- trolled by foreign banks, and organizations operating under section 25 or 25(a) of the Federal Reserve Act, by the Board; and ‘‘(C) banks insured by the Federal Deposit Insur- ance Corporation (other than members of the Federal Page 1628 TITLE 15—COMMERCE AND TRADE § 1691c–1 Reserve System) and insured State branches of for- eign banks, by the Board of Directors of the Federal Deposit Insurance Corporation;’’. Subsec. (a)(2) to (9). Pub. L. 111–203, § 1085(4)(A)(ii)–(vi), added par. (9), redesignated former pars. (3) to (9) as (2) to (8), respectively, and struck out former par. (2) which read as follows: ‘‘Section 8 of the Federal Deposit Insurance Act, by the Director of the Office of Thrift Supervision, in the case of a savings as- sociation the deposits of which are insured by the Fed- eral Deposit Insurance Corporation.’’ Subsec. (c). Pub. L. 111–203, § 1085(4)(B), added subsec. (c) and struck out former subsec. (c) which read as fol- lows: ‘‘Except to the extent that enforcement of the re- quirements imposed under this subchapter is specifi- cally committed to some other Government agency under subsection (a) of this section, the Federal Trade Commission shall enforce such requirements. For the purpose of the exercise by the Federal Trade Commis- sion of its functions and powers under the Federal Trade Commission Act, a violation of any requirement imposed under this subchapter shall be deemed a viola- tion of a requirement imposed under that Act. All of the functions and powers of the Federal Trade Commis- sion under the Federal Trade Commission Act are available to the Commission to enforce compliance by any person with the requirements imposed under this subchapter, irrespective of whether that person is en- gaged in commerce or meets any other jurisdictional tests in the Federal Trade Commission Act, including the power to enforce any Federal Reserve Board regula- tion promulgated under this subchapter in the same manner as if the violation had been a violation of a Federal Trade Commission trade regulation rule.’’ Subsec. (d). Pub. L. 111–203, § 1085(4)(C), substituted ‘‘Bureau’’ for ‘‘Board’’. 1995—Subsec. (a)(4). Pub. L. 104–88 substituted ‘‘Sec- retary of Transportation, with respect to all carriers subject to the jurisdiction of the Surface Transpor- tation Board’’ for ‘‘Interstate Commerce Commission with respect to any common carrier subject to those Acts’’. 1992—Subsec. (a)(1)(C). Pub. L. 102–550 substituted semicolon for period at end. 1991—Subsec. (a). Pub. L. 102–242, § 212(d)(2), inserted at end ‘‘The terms used in paragraph (1) that are not defined in this subchapter or otherwise defined in sec- tion 3(s) of the Federal Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the meaning given to them in section 1(b) of the International Banking Act of 1978 (12 U.S.C. 3101).’’ Pub. L. 102–242, § 212(d)(1), added par. (1) and struck out former par. (1) which read as follows: ‘‘Section 8 of Federal Deposit Insurance Act, in the case of— ‘‘(A) national banks, by the Comptroller of the Cur- rency, ‘‘(B) member banks of the Federal Reserve System (other than national banks), by the Federal Reserve Board, ‘‘(C) banks the deposits or accounts of which are in- sured by the Federal Deposit Insurance Corporation (other than members of the Federal Reserve System), by the Board of Directors of the Federal Deposit In- surance Corporation.’’ 1989—Subsec. (a)(2). Pub. L. 101–73 amended par. (2) generally. Prior to amendment, par. (2) read as follows: ‘‘Section 5(d) of the Home Owners’ Loan Act of 1933, section 407 of the National Housing Act, and sections 6(i) and 17 of the Federal Home Loan Bank Act, by the Federal Home Loan Bank Board (acting directly or through the Federal Savings and Loan Insurance Cor- poration), in the case of any institution subject to any of those provisions.’’ 1984—Subsec. (a)(5). Pub. L. 98–443 substituted ‘‘Sec- retary of Transportation’’ for ‘‘Civil Aeronautics Board’’. 1976—Subsec. (c). Pub. L. 94–239 inserted provisions giving the Federal Trade Commission power to enforce any regulation of the Federal Reserve Board promul- gated under this subchapter. 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 1995 AMENDMENT Amendment by Pub. L. 104–88 effective Jan. 1, 1996, see section 2 of Pub. L. 104–88, set out as an Effective Date note under section 1301 of Title 49, Transpor- tation. EFFECTIVE DATE OF 1992 AMENDMENT Amendment by Pub. L. 102–550 effective as if included in the Federal Deposit Insurance Corporation Improve- ment Act of 1991, Pub. L. 102–242, as of Dec. 19, 1991, see section 1609(a) of Pub. L. 102–550, set out as a note under section 191 of Title 12, Banks and Banking. EFFECTIVE DATE OF 1984 AMENDMENT Amendment by Pub. L. 98–443 effective Jan. 1, 1985, see section 9(v) of Pub. L. 98–443, set out as a note under section 5314 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. TRANSFER OF FUNCTIONS Functions vested in Administrator of National Credit Union Administration transferred and vested in Na- tional Credit Union Administration Board pursuant to section 1752a of Title 12, Banks and Banking. § 1691c–1. Incentives for self-testing and self-cor- rection (a) Privileged information (1) Conditions for privilege A report or result of a self-test (as that term is defined by regulations of the Bureau) shall be considered to be privileged under paragraph (2) if a creditor— (A) conducts, or authorizes an independent third party to conduct, a self-test of any as- pect of a credit transaction by a creditor, in order to determine the level or effectiveness of compliance with this subchapter by the creditor; and (B) has identified any possible violation of this subchapter by the creditor and has taken, or is taking, appropriate corrective action to address any such possible viola- tion. (2) Privileged self-test If a creditor meets the conditions specified in subparagraphs (A) and (B) of paragraph (1) with respect to a self-test described in that paragraph, any report or results of that self- test— (A) shall be privileged; and (B) may not be obtained or used by any ap- plicant, department, or agency in any— (i) proceeding or civil action in which one or more violations of this subchapter are alleged; or (ii) examination or investigation relat- ing to compliance with this subchapter. (b) Results of self-testing (1) In general No provision of this section may be con- strued to prevent an applicant, department, or