15 U.S.C. § 1691d — Applicability of other laws

Page 1631 TITLE 15—COMMERCE AND TRADE § 1691d mine whether the applicants are women- owned, minority-owned, or small businesses for purposes of this section. (h) Definitions For purposes of this section, the following definitions shall apply: (1) Financial institution The term ‘‘financial institution’’ means any partnership, company, corporation, associa- tion (incorporated or unincorporated), trust, estate, cooperative organization, or other en- tity that engages in any financial activity. (2) Small business The term ‘‘small business’’ has the same meaning as the term ‘‘small business concern’’ in section 632 of this title. (3) Small business loan The term ‘‘small business loan’’ means a loan made to a small business. (4) Minority The term ‘‘minority’’ has the same meaning as in section 1204(c)(3) of the Financial Institu- tions Reform, Recovery, and Enforcement Act of 1989. (5) Minority-owned business The term ‘‘minority-owned business’’ means a business— (A) more than 50 percent of the ownership or control of which is held by 1 or more mi- nority individuals; and (B) more than 50 percent of the net profit or loss of which accrues to 1 or more minor- ity individuals. (6) Women-owned business The term ‘‘women-owned business’’ means a business— (A) more than 50 percent of the ownership or control of which is held by 1 or more women; and (B) more than 50 percent of the net profit or loss of which accrues to 1 or more women. (Pub. L. 90–321, title VII, § 704B, as added Pub. L. 111–203, title X, § 1071(a), July 21, 2010, 124 Stat. 2056.) Editorial Notes REFERENCES IN TEXT Section 1204(c)(3) of the Financial Institutions Re- form, Recovery, and Enforcement Act of 1989, referred to in subsec. (h)(4), is section 1204(c)(3) of Pub. L. 101–73, which is set out as a note under section 1811 of Title 12, Banks and Banking. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective on the designated transfer date, see section 1071(d) of Pub. L. 111–203, set out as an Effective Date of 2010 Amendment note under section 1691 of this title. § 1691d. Applicability of other laws (a) Requests for signature of husband and wife for creation of valid lien, etc. A request for the signature of both parties to a marriage for the purpose of creating a valid lien, passing clear title, waiving inchoate rights to property, or assigning earnings, shall not con- stitute discrimination under this subchapter: Provided, however, That this provision shall not be construed to permit a creditor to take sex or marital status into account in connection with the evaluation of creditworthiness of any appli- cant. (b) State property laws affecting creditworthi- ness Consideration or application of State property laws directly or indirectly affecting credit- worthiness shall not constitute discrimination for purposes of this subchapter. (c) State laws prohibiting separate extension of consumer credit to husband and wife Any provision of State law which prohibits the separate extension of consumer credit to each party to a marriage shall not apply in any case where each party to a marriage voluntarily ap- plies for separate credit from the same creditor: Provided, That in any case where such a State law is so preempted, each party to the marriage shall be solely responsible for the debt so con- tracted. (d) Combining credit accounts of husband and wife with same creditor to determine permis- sible finance charges or loan ceilings under Federal or State laws When each party to a marriage separately and voluntarily applies for and obtains separate credit accounts with the same creditor, those accounts shall not be aggregated or otherwise combined for purposes of determining permis- sible finance charges or permissible loan ceil- ings under the laws of any State or of the United States. (e) Election of remedies under subchapter or State law; nature of relief determining appli- cability Where the same act or omission constitutes a violation of this subchapter and of applicable State law, a person aggrieved by such conduct may bring a legal action to recover monetary damages either under this subchapter or under such State law, but not both. This election of remedies shall not apply to court actions in which the relief sought does not include mone- tary damages or to administrative actions. (f) Compliance with inconsistent State laws; de- termination of inconsistency This subchapter does not annul, alter, or af- fect, or exempt any person subject to the provi- sions of this subchapter from complying with, the laws of any State with respect to credit dis- crimination, except to the extent that those laws are inconsistent with any provision of this subchapter, and then only to the extent of the inconsistency. The Bureau is authorized to de- termine whether such inconsistencies exist. The Bureau may not determine that any State law is inconsistent with any provision of this sub- chapter if the Bureau determines that such law gives greater protection to the applicant. (g) Exemption by regulation of credit trans- actions covered by State law; failure to com- ply with State law The Bureau shall by regulation exempt from the requirements of sections 1691 and 1691a of Page 1632 TITLE 15—COMMERCE AND TRADE § 1691e this title any class of credit transactions within any State if it determines that under the law of that State that class of transactions is subject to requirements substantially similar to those imposed under this subchapter or that such law gives greater protection to the applicant, and that there is adequate provision for enforce- ment. Failure to comply with any requirement of such State law in any transaction so exempt- ed shall constitute a violation of this subchapter for the purposes of section 1691e of this title. (Pub. L. 90–321, title VII, § 705, as added Pub. L. 93–495, title V, § 503, Oct. 28, 1974, 88 Stat. 1523; amended Pub. L. 94–239, § 5, Mar. 23, 1976, 90 Stat. 253; Pub. L. 111–203, title X, § 1085(1), July 21, 2010, 124 Stat. 2083.) Editorial Notes AMENDMENTS 2010—Subsecs. (f), (g). Pub. L. 111–203 substituted ‘‘Bu- reau’’ for ‘‘Board’’ wherever appearing. 1976—Subsec. (e). Pub. L. 94–239, § 5(1), substituted provisions requiring an election of remedies in legal ac- tions involving the recovery of monetary damages, for provisions specifying a general election of remedies. Subsecs. (f), (g). Pub. L. 94–239, § 5(2), added subsecs. (f) and (g). 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. § 1691e. Civil liability (a) Individual or class action for actual damages Any creditor who fails to comply with any re- quirement imposed under this subchapter shall be liable to the aggrieved applicant for any ac- tual damages sustained by such applicant acting either in an individual capacity or as a member of a class. (b) Recovery of punitive damages in individual and class action for actual damages; exemp- tions; maximum amount of punitive damages in individual actions; limitation on total re- covery in class actions; factors determining amount of award Any creditor, other than a government or gov- ernmental subdivision or agency, who fails to comply with any requirement imposed under this subchapter shall be liable to the aggrieved applicant for punitive damages in an amount not greater than $10,000, in addition to any ac- tual damages provided in subsection (a), except that in the case of a class action the total recov- ery under this subsection shall not exceed the lesser of $500,000 or 1 per centum of the net worth of the creditor. In determining the amount of such damages in any action, the court shall consider, among other relevant fac- tors, the amount of any actual damages award- ed, the frequency and persistence of failures of compliance by the creditor, the resources of the creditor, the number of persons adversely af- fected, and the extent to which the creditor’s failure of compliance was intentional. (c) Action for equitable and declaratory relief Upon application by an aggrieved applicant, the appropriate United States district court or any other court of competent jurisdiction may grant such equitable and declaratory relief as is necessary to enforce the requirements imposed under this subchapter. (d) Recovery of costs and attorney fees In the case of any successful action under sub- section (a), (b), or (c), the costs of the action, to- gether with a reasonable attorney’s fee as deter- mined by the court, shall be added to any dam- ages awarded by the court under such sub- section. (e) Good faith compliance with rule, regulation, or interpretation of Bureau or interpretation or approval by an official or employee of Bu- reau of Consumer Financial Protection duly authorized by Bureau No provision of this subchapter imposing li- ability shall apply to any act done or omitted in good faith in conformity with any official rule, regulation, or interpretation thereof by the Bu- reau or in conformity with any interpretation or approval by an official or employee of the Bu- reau of Consumer Financial Protection duly au- thorized by the Bureau to issue such interpreta- tions or approvals under such procedures as the Bureau may prescribe therefor, notwithstanding that after such act or omission has occurred, such rule, regulation, interpretation, or ap- proval is amended, rescinded, or determined by judicial or other authority to be invalid for any reason. (f) Jurisdiction of courts; time for maintenance of action; exceptions Any action under this section may be brought in the appropriate United States district court without regard to the amount in controversy, or in any other court of competent jurisdiction. No such action shall be brought later than 5 years after the date of the occurrence of the violation, except that— (1) whenever any agency having responsi- bility for administrative enforcement under section 1691c of this title commences an en- forcement proceeding within 5 years after the date of the occurrence of the violation, (2) whenever the Attorney General com- mences a civil action under this section within 5 years after the date of the occurrence of the violation, then any applicant who has been a victim of the discrimination which is the subject of such pro- ceeding or civil action may bring an action under this section not later than one year after the commencement of that proceeding or action. (g) Request by responsible enforcement agency to Attorney General for civil action The agencies having responsibility for admin- istrative enforcement under section 1691c of this title, if unable to obtain compliance with sec- tion 1691 of this title, are authorized to refer the