15 U.S.C. § 1613 — Annual reports to Congress by Bureau

Page 1473 TITLE 15—COMMERCE AND TRADE § 1613 (3) otherwise fails to comply with any re- quirement imposed under this subchapter, shall be fined not more than $5,000 or imprisoned not more than one year, or both. (Pub. L. 90–321, title I, § 112, May 29, 1968, 82 Stat. 151; Pub. L. 111–203, title X, § 1100A(2), July 21, 2010, 124 Stat. 2107.) Editorial Notes AMENDMENTS 2010—Par. (2). Pub. L. 111–203 substituted ‘‘Bureau’’ for ‘‘Board’’. 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. § 1612. Effect on government agencies (a) Consultation requirements respecting compli- ance of credit instruments issued to partici- pating creditor Any department or agency of the United States which administers a credit program in which it extends, insures, or guarantees con- sumer credit and in which it provides instru- ments to a creditor which contain any disclo- sures required by this subchapter shall, prior to the issuance or continued use of such instru- ments, consult with the Bureau to assure that such instruments comply with this subchapter. (b) Inapplicability of Federal civil or criminal penalties to Federal, State, and local agen- cies No civil or criminal penalty provided under this subchapter for any violation thereof may be imposed upon the United States or any depart- ment or agency thereof, or upon any State or political subdivision thereof, or any agency of any State or political subdivision. (c) Inapplicability of Federal civil or criminal penalties to participating creditor where vio- lating instrument issued by United States A creditor participating in a credit program administered, insured, or guaranteed by any de- partment or agency or the United States shall not be held liable for a civil or criminal penalty under this subchapter in any case in which the violation results from the use of an instrument required by any such department or agency. (d) Applicability of State penalties to violations by participating creditor A creditor participating in a credit program administered, insured, or guaranteed by any de- partment or agency of the United States shall not be held liable for a civil or criminal penalty under the laws of any State (other than laws de- termined under section 1610 of this title to be in- consistent with this subchapter) for any tech- nical or procedural failure, such as a failure to use a specific form, to make information avail- able at a specific place on an instrument, or to use a specific typeface, as required by State law, which is caused by the use of an instrument re- quired to be used by such department or agency. (Pub. L. 90–321, title I, § 113, May 29, 1968, 82 Stat. 151; Pub. L. 96–221, title VI, § 622(a), Mar. 31, 1980, 94 Stat. 184; Pub. L. 111–203, title X, § 1100A(2), July 21, 2010, 124 Stat. 2107.) Editorial Notes AMENDMENTS 2010—Subsec. (a). Pub. L. 111–203 substituted ‘‘Bu- reau’’ for ‘‘Board’’. 1980—Pub. L. 96–221 amended section generally, desig- nating existing provisions as subsec. (b) and adding subsecs. (a), (c), and (d). 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 1980 AMENDMENT Amendment by Pub. L. 96–221 effective on expiration of two years and six months after Mar. 31, 1980, with all regulations, forms, and clauses required to be pre- scribed to be promulgated at least one year prior to such effective date, and allowing any creditor to com- ply with any amendments, in accordance with the regu- lations, forms, and clauses prescribed by the Board prior to such effective date, see section 625 of Pub. L. 96–221, set out as a note under section 1602 of this title. § 1613. Annual reports to Congress by Bureau Each year the Bureau shall make a report to the Congress concerning the administration of its functions under this subchapter, including such recommendations as the Bureau deems nec- essary or appropriate. In addition, each report of the Bureau shall include its assessment of the extent to which compliance with the require- ments imposed under this subchapter is being achieved. (Pub. L. 90–321, title I, § 114, May 29, 1968, 82 Stat. 151; Pub. L. 96–221, title VI, § 610(a), Mar. 31, 1980, 94 Stat. 174; Pub. L. 97–375, title II, § 209(b), Dec. 21, 1982, 96 Stat. 1825; Pub. L. 111–203, title X, § 1100A(2), July 21, 2010, 124 Stat. 2107.) Editorial Notes AMENDMENTS 2010—Pub. L. 111–203 substituted ‘‘Bureau’’ for ‘‘Board’’ wherever appearing. 1982—Pub. L. 97–375 struck out requirement that the Attorney General make a report on the same terms as the Board. 1980—Pub. L. 96–221 substituted ‘‘Each year’’ for ‘‘Not later than January 3 of each year after 1969,’’. 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 1980 AMENDMENT Amendment by Pub. L. 96–221 effective on expiration of two years and six months after Mar. 31, 1980, with all regulations, forms, and clauses required to be pre- scribed to be promulgated at least one year prior to such effective date, and allowing any creditor to com- Page 1474 TITLE 15—COMMERCE AND TRADE § 1614 1 So in original. Probably should be ‘‘de minimis’’. ply with any amendments, in accordance with the regu- lations, forms, and clauses prescribed by the Board prior to such effective date, see section 625 of Pub. L. 96–221, set out as a note under section 1602 of this title. § 1614. Repealed. Pub. L. 96–221, title VI, § 616(b), Mar. 31, 1980, 94 Stat. 182 Section, Pub. L. 90–321, title I, § 115, as added Pub. L. 93–495, title IV, § 413(a), Oct. 28, 1974, 88 Stat. 1520, re- lated to liability of assignees. See section 1641 of this title. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective on expiration of two years and six months after Mar. 31, 1980, with all regulations, forms, and clauses required to be prescribed to be promulgated at least one year prior to such effective date, and al- lowing any creditor to comply with any amendments, in accordance with the regulations, forms, and clauses prescribed by the Board prior to such effective date, see section 625 of Pub. L. 96–221, set out as an Effective Date of 1980 Amendment note under section 1602 of this title. § 1615. Prohibition on use of ‘‘Rule of 78’s’’ in con- nection with mortgage refinancings and other consumer loans (a) Prompt refund of unearned interest required (1) In general If a consumer prepays in full the financed amount under any consumer credit trans- action, the creditor shall promptly refund any unearned portion of the interest charge to the consumer. (2) Exception for refund of de minimus 1 amount No refund shall be required under paragraph (1) with respect to the prepayment of any con- sumer credit transaction if the total amount of the refund would be less than $1. (3) Applicability to refinanced transactions and acceleration by the creditor This subsection shall apply with respect to any prepayment of a consumer credit trans- action described in paragraph (1) without re- gard to the manner or the reason for the pre- payment, including— (A) any prepayment made in connection with the refinancing, consolidation, or re- structuring of the transaction; and (B) any prepayment made as a result of the acceleration of the obligation to repay the amount due with respect to the transaction. (b) Use of ‘‘Rule of 78’s’’ prohibited For the purpose of calculating any refund of interest required under subsection (a) for any precomputed consumer credit transaction of a term exceeding 61 months which is con- summated after September 30, 1993, the creditor shall compute the refund based on a method which is at least as favorable to the consumer as the actuarial method. (c) Statement of prepayment amount (1) In general Before the end of the 5-day period beginning on the date an oral or written request is re- ceived by a creditor from a consumer for the disclosure of the amount due on any precomputed consumer credit account, the creditor or assignee shall provide the con- sumer with a statement of— (A) the amount necessary to prepay the ac- count in full; and (B) if the amount disclosed pursuant to subparagraph (A) includes an amount which is required to be refunded under this section with respect to such prepayment, the amount of such refund. (2) Written statement required if request is in writing If the customer’s request is in writing, the statement under paragraph (1) shall be in writ- ing. (3) 1 free annual statement A consumer shall be entitled to obtain 1 statement under paragraph (1) each year with- out charge. (4) Additional statements subject to reasonable fees Any creditor may impose a reasonable fee to cover the cost of providing any statement under paragraph (1) to any consumer in addi- tion to the 1 free annual statement required under paragraph (3) if the amount of the charge for such additional statement is dis- closed to the consumer before furnishing such statement. (d) Definitions For the purpose of this section— (1) Actuarial method The term ‘‘actuarial method’’ means the method of allocating payments made on a debt between the amount financed and the finance charge pursuant to which a payment is applied first to the accumulated finance charge and any remainder is subtracted from, or any defi- ciency is added to, the unpaid balance of the amount financed. (2) Consumer, credit The terms ‘‘consumer’’ and ‘‘creditor’’ have the meanings given to such terms in section 1602 of this title. (3) Creditor The term ‘‘creditor’’— (A) has the meaning given to such term in section 1602 of this title; and (B) includes any assignee of any creditor with respect to credit extended in connec- tion with any consumer credit transaction and any subsequent assignee with respect to such credit. (Pub. L. 102–550, title IX, § 933, Oct. 28, 1992, 106 Stat. 3891.) Editorial Notes CODIFICATION Section was enacted as part of the Housing and Com- munity Development Act of 1992, and not as part of the Consumer Credit Protection Act which comprises this chapter.