12 U.S.C. § 5519 — Exclusion for auto dealers

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 Page 1971 TITLE 12—BANKS AND BANKING § 5531 1 See References in Text note below. 2 So in original. The period probably should be a comma. (B) in which— (i) the extension of retail credit or retail leases are provided directly to consumers; and (ii) the contract governing such exten- sion of retail credit or retail leases is not routinely assigned to an unaffiliated third party finance or leasing source; or (3) offers or provides a consumer financial product or service not involving or related to the sale, financing, leasing, rental, repair, re- furbishment, maintenance, or other servicing of motor vehicles, motor vehicle parts, or any related or ancillary product or service. (c) Preservation of authorities of other agencies Except as provided in subsections (b) and (d), nothing in this title,1 including subtitle F, shall be construed as modifying, limiting, or super- seding the operation of any provision of Federal law, or otherwise affecting the authority of the Board of Governors, the Federal Trade Commis- sion, or any other Federal agency, with respect to a person described in subsection (a). (d) Federal Trade Commission authority Notwithstanding section 57a of title 15, the Federal Trade Commission is authorized to pre- scribe rules under sections 45 and 57a(a)(1)(B) of title 15.2 in accordance with section 553 of title 5, with respect to a person described in sub- section (a). (e) Coordination with Office of Service Member Affairs The Board of Governors and the Federal Trade Commission shall coordinate with the Office of Service Member Affairs, to ensure that— (1) service members and their families are educated and empowered to make better in- formed decisions regarding consumer financial products and services offered by motor vehicle dealers, with a focus on motor vehicle dealers in the proximity of military installations; and (2) complaints by service members and their families concerning such motor vehicle deal- ers are effectively monitored and responded to, and where appropriate, enforcement action is pursued by the authorized agencies. (f) Definitions For purposes of this section, the following definitions shall apply: (1) Motor vehicle The term ‘‘motor vehicle’’ means— (A) any self-propelled vehicle designed for transporting persons or property on a street, highway, or other road; (B) recreational boats and marine equip- ment; (C) motorcycles; (D) motor homes, recreational vehicle trailers, and slide-in campers, as those terms are defined in sections 571.3 and 575.103 (d) of title 49, Code of Federal Regulations, or any successor thereto; and (E) other vehicles that are titled and sold through dealers. (2) Motor vehicle dealer The term ‘‘motor vehicle dealer’’ means any person or resident in the United States, or any territory of the United States, who— (A) is licensed by a State, a territory of the United States, or the District of Colum- bia to engage in the sale of motor vehicles; and (B) takes title to, holds an ownership in, or takes physical custody of motor vehicles. (Pub. L. 111–203, title X, § 1029, July 21, 2010, 124 Stat. 2004.) Editorial Notes REFERENCES IN TEXT This title, referred to in subsec. (c), 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 subsec. (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. 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. PART C—SPECIFIC BUREAU AUTHORITIES § 5531. Prohibiting unfair, deceptive, or abusive acts or practices (a) In general The Bureau may take any action authorized under part E to prevent a covered person or service provider from committing or engaging in an unfair, deceptive, or abusive act or practice under Federal law in connection with any trans- action with a consumer for a consumer financial product or service, or the offering of a consumer financial product or service. (b) Rulemaking The Bureau may prescribe rules applicable to a covered person or service provider identifying as unlawful unfair, deceptive, or abusive acts or practices in connection with any transaction with a consumer for a consumer financial prod- uct or service, or the offering of a consumer fi- nancial product or service. Rules under this sec- tion may include requirements for the purpose of preventing such acts or practices. (c) Unfairness (1) In general The Bureau shall have no authority under this section to declare an act or practice in connection with a transaction with a con- sumer for a consumer financial product or service, or the offering of a consumer financial product or service, to be unlawful on the grounds that such act or practice is unfair, un- less the Bureau has a reasonable basis to con- clude that—