12 U.S.C. § 5493 — Administration

Page 1946 TITLE 12—BANKS AND BANKING § 5493 1 See References in Text note below. (c) Autonomy of the Bureau (1) Coordination with the Board of Governors Notwithstanding any other provision of law applicable to the supervision or examination of persons with respect to Federal consumer financial laws, the Board of Governors may delegate to the Bureau the authorities to ex- amine persons subject to the jurisdiction of the Board of Governors for compliance with the Federal consumer financial laws. (2) Autonomy Notwithstanding the authorities granted to the Board of Governors under the Federal Re- serve Act [12 U.S.C. 221 et seq.], the Board of Governors may not— (A) intervene in any matter or proceeding before the Director, including examinations or enforcement actions, unless otherwise specifically provided by law; (B) appoint, direct, or remove any officer or employee of the Bureau; or (C) merge or consolidate the Bureau, or any of the functions or responsibilities of the Bureau, with any division or office of the Board of Governors or the Federal reserve banks. (3) Rules and orders No rule or order of the Bureau shall be sub- ject to approval or review by the Board of Governors. The Board of Governors may not delay or prevent the issuance of any rule or order of the Bureau. (4) Recommendations and testimony No officer or agency of the United States shall have any authority to require the Direc- tor or any other officer of the Bureau to sub- mit legislative recommendations, or testi- mony or comments on legislation, to any offi- cer or agency of the United States for ap- proval, comments, or review prior to the sub- mission of such recommendations, testimony, or comments to the Congress, if such rec- ommendations, testimony, or comments to the Congress include a statement indicating that the views expressed therein are those of the Director or such officer, and do not nec- essarily reflect the views of the Board of Gov- ernors or the President. (5) Clarification of autonomy of the Bureau in legal proceedings The Bureau shall not be liable under any provision of law for any action or inaction of the Board of Governors, and the Board of Gov- ernors shall not be liable under any provision of law for any action or inaction of the Bu- reau. (Pub. L. 111–203, title X, § 1012, July 21, 2010, 124 Stat. 1965.) 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. The Federal Reserve Act, referred to in subsec. (c)(2), is act Dec. 23, 1913, ch. 6, 38 Stat. 251, which is classified principally to chapter 3 (§ 221 et seq.) of this title. For complete classification of this Act to the Code, see Ref- erences in Text note set out under section 226 of this title and Tables. § 5493. Administration (a) Personnel (1) Appointment (A) In general The Director may fix the number of, and appoint and direct, all employees of the Bu- reau, in accordance with the applicable pro- visions of title 5. (B) Employees of the Bureau The Director is authorized to employ at- torneys, compliance examiners, compliance supervision analysts, economists, statisti- cians, and other employees as may be deemed necessary to conduct the business of the Bureau. Unless otherwise provided ex- pressly by law, any individual appointed under this section shall be an employee as defined in section 2105 of title 5 and subject to the provisions of such title and other laws generally applicable to the employees of an Executive agency. (C) Waiver authority (i) In general In making any appointment under sub- paragraph (A), the Director may waive the requirements of chapter 33 of title 5, and the regulations implementing such chap- ter, to the extent necessary to appoint em- ployees on terms and conditions that are consistent with those set forth in section 11(1) of the Federal Reserve Act (12 U.S.C. 248(1)),1 while providing for— (I) fair, credible, and transparent methods of establishing qualification re- quirements for, recruitment for, and ap- pointments to positions; (II) fair and open competition and eq- uitable treatment in the consideration and selection of individuals to positions; (III) fair, credible, and transparent methods of assigning, reassigning, de- tailing, transferring, and promoting em- ployees. (ii) Veterans preferences In implementing this subparagraph, the Director shall comply with the provisions of section 2302(b)(11),1 regarding veterans’ preference requirements, in a manner con- sistent with that in which such provisions are applied under chapter 33 of title 5. The authority under this subparagraph to waive the requirements of that chapter 33 shall expire 5 years after July 21, 2010. (2) Compensation Notwithstanding any otherwise applicable provision of title 5 concerning compensation, Page 1947 TITLE 12—BANKS AND BANKING § 5493 including the provisions of chapter 51 and chapter 53, the following provisions shall apply with respect to employees of the Bu- reau: (A) The rates of basic pay for all employ- ees of the Bureau may be set and adjusted by the Director. (B) The Director shall at all times provide compensation (including benefits) to each class of employees that, at a minimum, are comparable to the compensation and bene- fits then being provided by the Board of Gov- ernors for the corresponding class of employ- ees. (C) All such employees shall be com- pensated (including benefits) on terms and conditions that are consistent with the terms and conditions set forth in section 248(l) of this title. (3) Bureau participation in Federal Reserve System Retirement Plan and Federal Re- serve System Thrift Plan (A) Employee election Employees appointed to the Bureau may elect to participate in either— (i) both the Federal Reserve System Re- tirement Plan and the Federal Reserve System Thrift Plan, under the same terms on which such participation is offered to employees of the Board of Governors who participate in such plans and under the terms and conditions specified under sec- tion 5584(i)(1)(C) of this title; or (ii) the Civil Service Retirement System under chapter 83 of title 5 or the Federal Employees Retirement System under chapter 84 of title 5, if previously covered under one of those Federal employee re- tirement systems. (B) Election period Bureau employees shall make an election under this paragraph not later than 1 year after the date of appointment by, or transfer under part F to, the Bureau. Participation in, and benefit accruals under, any other re- tirement plan established or maintained by the Federal Government shall end not later than the date on which participation in, and benefit accruals under, the Federal Reserve System Retirement Plan and Federal Re- serve System Thrift Plan begin. (C) Employer contribution The Bureau shall pay an employer con- tribution to the Federal Reserve System Re- tirement Plan, in the amount established as an employer contribution under the Federal Employees Retirement System, as estab- lished under chapter 84 of title 5 for each Bu- reau employee who elects to participate in the Federal Reserve System Retirement Plan. The Bureau shall pay an employer con- tribution to the Federal Reserve System Thrift Plan for each Bureau employee who elects to participate in such plan, as re- quired under the terms of such plan. (D) Controlled group status The Bureau is the same employer as the Federal Reserve System (as comprised of the Board of Governors and each of the 12 Fed- eral reserve banks prior to July 21, 2010) for purposes of subsections (b), (c), (m), and (o) of section 414 of title 26. (4) Labor-management relations Chapter 71 of title 5 shall apply to the Bu- reau and the employees of the Bureau. (5) Agency ombudsman (A) Establishment required Not later than 180 days after the des- ignated transfer date, the Bureau shall ap- point an ombudsman. (B) Duties of ombudsman The ombudsman appointed in accordance with subparagraph (A) shall— (i) act as a liaison between the Bureau and any affected person with respect to any problem that such party may have in dealing with the Bureau, resulting from the regulatory activities of the Bureau; and (ii) assure that safeguards exist to en- courage complainants to come forward and preserve confidentiality. (b) Specific functional units (1) Research The Director shall establish a unit whose functions shall include researching, analyzing, and reporting on— (A) developments in markets for consumer financial products or services, including market areas of alternative consumer finan- cial products or services with high growth rates and areas of risk to consumers; (B) access to fair and affordable credit for traditionally underserved communities; (C) consumer awareness, understanding, and use of disclosures and communications regarding consumer financial products or services; (D) consumer awareness and understanding of costs, risks, and benefits of consumer fi- nancial products or services; (E) consumer behavior with respect to con- sumer financial products or services, includ- ing performance on mortgage loans; and (F) experiences of traditionally under- served consumers, including un-banked and under-banked consumers. (2) Community affairs The Director shall establish a unit whose functions shall include providing information, guidance, and technical assistance regarding the offering and provision of consumer finan- cial products or services to traditionally un- derserved consumers and communities. (3) Collecting and tracking complaints (A) In general The Director shall establish a unit whose functions shall include establishing a single, toll-free telephone number, a website, and a database or utilizing an existing database to facilitate the centralized collection of, mon- itoring of, and response to consumer com- plaints regarding consumer financial prod- ucts or services. The Director shall coordi- Page 1948 TITLE 12—BANKS AND BANKING § 5493 nate with the Federal Trade Commission or other Federal agencies to route complaints to such agencies, where appropriate. (B) Routing calls to States To the extent practicable, State agencies may receive appropriate complaints from the systems established under subparagraph (A), if— (i) the State agency system has the func- tional capacity to receive calls or elec- tronic reports routed by the Bureau sys- tems; (ii) the State agency has satisfied any conditions of participation in the system that the Bureau may establish, including treatment of personally identifiable infor- mation and sharing of information on complaint resolution or related compli- ance procedures and resources; and (iii) participation by the State agency includes measures necessary to provide for protection of personally identifiable infor- mation that conform to the standards for protection of the confidentiality of person- ally identifiable information and for data integrity and security that apply to the Federal agencies described in subpara- graph (D). (C) Reports to the Congress The Director shall present an annual re- port to Congress not later than March 31 of each year on the complaints received by the Bureau in the prior year regarding consumer financial products and services. Such report shall include information and analysis about complaint numbers, complaint types, and, where applicable, information about resolu- tion of complaints. (D) Data sharing required To facilitate preparation of the reports re- quired under subparagraph (C), supervision and enforcement activities, and monitoring of the market for consumer financial prod- ucts and services, the Bureau shall share consumer complaint information with pru- dential regulators, the Federal Trade Com- mission, other Federal agencies, and State agencies, subject to the standards applicable to Federal agencies for protection of the confidentiality of personally identifiable in- formation and for data security and integ- rity. The prudential regulators, the Federal Trade Commission, and other Federal agen- cies shall share data relating to consumer complaints regarding consumer financial products and services with the Bureau, sub- ject to the standards applicable to Federal agencies for protection of confidentiality of personally identifiable information and for data security and integrity. (c) Office of Fair Lending and Equal Opportunity (1) Establishment The Director shall establish within the Bu- reau the Office of Fair Lending and Equal Op- portunity. (2) Functions The Office of Fair Lending and Equal Oppor- tunity shall have such powers and duties as the Director may delegate to the Office, in- cluding— (A) providing oversight and enforcement of Federal laws intended to ensure the fair, eq- uitable, and nondiscriminatory access to credit for both individuals and communities that are enforced by the Bureau, including the Equal Credit Opportunity Act [15 U.S.C. 1691 et seq.] and the Home Mortgage Disclo- sure Act [12 U.S.C. 2801 et seq.]; (B) coordinating fair lending efforts of the Bureau with other Federal agencies and State regulators, as appropriate, to promote consistent, efficient, and effective enforce- ment of Federal fair lending laws; (C) working with private industry, fair lending, civil rights, consumer and commu- nity advocates on the promotion of fair lend- ing compliance and education; and (D) providing annual reports to Congress on the efforts of the Bureau to fulfill its fair lending mandate. (3) Administration of Office There is established the position of Assist- ant Director of the Bureau for Fair Lending and Equal Opportunity, who— (A) shall be appointed by the Director; and (B) shall carry out such duties as the Di- rector may delegate to such Assistant Direc- tor. (d) Office of Financial Education (1) Establishment The Director shall establish an Office of Fi- nancial Education, which shall be responsible for developing and implementing initiatives intended to educate and empower consumers to make better informed financial decisions. (2) Other duties The Office of Financial Education shall de- velop and implement a strategy to improve the financial literacy of consumers that in- cludes measurable goals and objectives, in consultation with the Financial Literacy and Education Commission, consistent with the National Strategy for Financial Literacy, through activities including providing oppor- tunities for consumers to access— (A) financial counseling, including commu- nity-based financial counseling, where prac- ticable; (B) information to assist with the evalua- tion of credit products and the under- standing of credit histories and scores; (C) savings, borrowing, and other services found at mainstream financial institutions; (D) activities intended to— (i) prepare the consumer for educational expenses and the submission of financial aid applications, and other major pur- chases; (ii) reduce debt; and (iii) improve the financial situation of the consumer; (E) assistance in developing long-term sav- ings strategies; and (F) wealth building and financial services during the preparation process to claim earned income tax credits and Federal bene- fits. Page 1949 TITLE 12—BANKS AND BANKING § 5493 (3) Coordination The Office of Financial Education shall co- ordinate with other units within the Bureau in carrying out its functions, including— (A) working with the Community Affairs Office to implement the strategy to improve financial literacy of consumers; and (B) working with the research unit estab- lished by the Director to conduct research related to consumer financial education and counseling. (4) Report Not later than 24 months after the des- ignated transfer date, and annually thereafter, the Director shall submit a report on its finan- cial literacy activities and strategy to im- prove financial literacy of consumers to— (A) the Committee on Banking, Housing, and Urban Affairs of the Senate; and (B) the Committee on Financial Services of the House of Representatives. (5), (6) Omitted (7) Study and report on financial literacy pro- gram (A) In general The Comptroller General of the United States shall conduct a study to identify— (i) the feasibility of certification of per- sons providing the programs or performing the activities described in paragraph (2), including recognizing outstanding pro- grams, and developing guidelines and re- sources for community-based practi- tioners, including— (I) a potential certification process and standards for certification; (II) appropriate certifying entities; (III) resources required for funding such a process; and (IV) a cost-benefit analysis of such cer- tification; (ii) technological resources intended to collect, analyze, evaluate, or promote fi- nancial literacy and counseling programs; (iii) effective methods, tools, and strate- gies intended to educate and empower con- sumers about personal finance manage- ment; and (iv) recommendations intended to en- courage the development of programs that effectively improve financial education outcomes and empower consumers to make better informed financial decisions based on findings. (B) Report Not later than 1 year after July 21, 2010, the Comptroller General of the United States shall submit a report on the results of the study conducted under this paragraph to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Com- mittee on Financial Services of the House of Representatives. (e) Office of Service Member Affairs (1) In general The Director shall establish an Office of Service Member Affairs, which shall be respon- sible for developing and implementing initia- tives for service members and their families intended to— (A) educate and empower service members and their families to make better informed decisions regarding consumer financial prod- ucts and services; (B) coordinate with the unit of the Bureau established under subsection (b)(3), in order to monitor complaints by service members and their families and responses to those complaints by the Bureau or other appro- priate Federal or State agency; and (C) coordinate efforts among Federal and State agencies, as appropriate, regarding consumer protection measures relating to consumer financial products and services of- fered to, or used by, service members and their families. (2) Coordination (A) Regional services The Director is authorized to assign em- ployees of the Bureau as may be deemed nec- essary to conduct the business of the Office of Service Member Affairs, including by es- tablishing and maintaining the functions of the Office in regional offices of the Bureau located near military bases, military treat- ment facilities, or other similar military fa- cilities. (B) Agreements The Director is authorized to enter into memoranda of understanding and similar agreements with the Department of Defense, including any branch or agency as author- ized by the department, in order to carry out the business of the Office of Service Member Affairs. (3) Definition As used in this subsection, the term ‘‘service member’’ means any member of the United States Armed Forces and any member of the National Guard or Reserves. (f) Timing The Office of Fair Lending and Equal Oppor- tunity, the Office of Financial Education, and the Office of Service Member Affairs shall each be established not later than 1 year after the designated transfer date. (g) Office of Financial Protection for Older Americans (1) Establishment Before the end of the 180-day period begin- ning on the designated transfer date, the Di- rector shall establish the Office of Financial Protection for Older Americans, the functions of which shall include activities designed to facilitate the financial literacy of individuals who have attained the age of 62 years or more (in this subsection, referred to as ‘‘seniors’’) on protection from unfair, deceptive, and abu- sive practices and on current and future finan- cial choices, including through the dissemina- tion of materials to seniors on such topics. (2) Assistant director The Office of Financial Protection for Older Americans (in this subsection referred to as Page 1950 TITLE 12—BANKS AND BANKING § 5494 the ‘‘Office’’) shall be headed by an assistant director. (3) Duties The Office shall— (A) develop goals for programs that pro- vide seniors financial literacy and coun- seling, including programs that— (i) help seniors recognize warning signs of unfair, deceptive, or abusive practices, protect themselves from such practices; (ii) provide one-on-one financial coun- seling on issues including long-term sav- ings and later-life economic security; and (iii) provide personal consumer credit ad- vocacy to respond to consumer problems caused by unfair, deceptive, or abusive practices; (B) monitor certifications or designations of financial advisors who advise seniors and alert the Commission and State regulators of certifications or designations that are identified as unfair, deceptive, or abusive; (C) not later than 18 months after the date of the establishment of the Office, submit to Congress and the Commission any legisla- tive and regulatory recommendations on the best practices for— (i) disseminating information regarding the legitimacy of certifications of finan- cial advisers who advise seniors; (ii) methods in which a senior can iden- tify the financial advisor most appropriate for the senior’s needs; and (iii) methods in which a senior can verify a financial advisor’s credentials; (D) conduct research to identify best prac- tices and effective methods, tools, tech- nology and strategies to educate and counsel seniors about personal finance management with a focus on— (i) protecting themselves from unfair, deceptive, and abusive practices; (ii) long-term savings; and (iii) planning for retirement and long- term care; (E) coordinate consumer protection efforts of seniors with other Federal agencies and State regulators, as appropriate, to promote consistent, effective, and efficient enforce- ment; and (F) work with community organizations, non-profit organizations, and other entities that are involved with educating or assisting seniors (including the National Education and Resource Center on Women and Retire- ment Planning). (h) Application of chapter 10 of title 5 Notwithstanding any provision of chapter 10 of title 5, such chapter shall apply to each advisory committee of the Bureau and each sub- committee of such an advisory committee. (Pub. L. 111–203, title X, § 1013, July 21, 2010, 124 Stat. 1966; Pub. L. 114–113, div. O, title VII, § 704, Dec. 18, 2015, 129 Stat. 3025; Pub. L. 117–286, § 4(a)(59), Dec. 27, 2022, 136 Stat. 4311.) Editorial Notes REFERENCES IN TEXT Section 11(1) of the Federal Reserve Act, referred to in subsec. (a)(1)(C)(i), probably means section 11(l) of the Federal Reserve Act, which is classified to section 248(l) of this title. Section 2302(b)(11), referred to in subsec. (a)(1)(C)(ii), probably means section 2302(b)(11) of Title 5, Govern- ment Organization and Employees. The Equal Credit Opportunity Act, referred to in sub- sec. (c)(2)(A), is title VII of Pub. L. 90–321, as added by Pub. L. 93–495, title V, § 503, Oct. 28, 1974, 88 Stat. 1521, which is classified generally to subchapter IV (§ 1691 et seq.) of chapter 41 of Title 15, Commerce and Trade. For complete classification of this Act to the Code, see Short Title note set out under section 1601 of Title 15 and Tables. The Home Mortgage Disclosure Act, referred to in subsec. (c)(2)(A), probably means the Home Mortgage Disclosure Act of 1975, which is title III of Pub. L. 94–200, Dec. 31, 1975, 89 Stat. 1125, and is classified prin- cipally to chapter 29 (§ 2801 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2801 of this title and Tables. CODIFICATION Section is comprised of section 1013 of Pub. L. 111–203. Subsec. (d)(5), (6) of section 1013 of Pub. L. 111–203 amended section 9702 of Title 20, Education. AMENDMENTS 2022—Subsec. (h). Pub. L. 117–286 substituted ‘‘chapter 10 of title 5’’ for ‘‘FACA’’ in heading and ‘‘chapter 10 of title 5, such chapter’’ for ‘‘the Federal Advisory Com- mittee Act (5 U.S.C. App.), such Act’’ in text. 2015—Subsec. (h). Pub. L. 114–113 added subsec. (h). § 5494. Consumer Advisory Board (a) Establishment required The Director shall establish a Consumer Advi- sory Board to advise and consult with the Bu- reau in the exercise of its functions under the Federal consumer financial laws, and to provide information on emerging practices in the con- sumer financial products or services industry, including regional trends, concerns, and other relevant information. (b) Membership In appointing the members of the Consumer Advisory Board, the Director shall seek to as- semble experts in consumer protection, financial services, community development, fair lending and civil rights, and consumer financial prod- ucts or services and representatives of deposi- tory institutions that primarily serve under- served communities, and representatives of com- munities that have been significantly impacted by higher-priced mortgage loans, and seek rep- resentation of the interests of covered persons and consumers, without regard to party affili- ation. Not fewer than 6 members shall be ap- pointed upon the recommendation of the re- gional Federal Reserve Bank Presidents, on a rotating basis. (c) Meetings The Consumer Advisory Board shall meet from time to time at the call of the Director, but, at a minimum, shall meet at least twice in each year. (d) Compensation and travel expenses Members of the Consumer Advisory Board who are not full-time employees of the United States shall— (1) be entitled to receive compensation at a rate fixed by the Director while attending