Collapse to view only § 1691b. Promulgation of regulations by the Bureau
- § 1691. Scope of prohibition
- § 1691a. Definitions; rules of construction
- § 1691b. Promulgation of regulations by the Bureau
- § 1691c. Administrative enforcement
- § 1691c-1. Incentives for self-testing and self-correction
- § 1691c-2. Small business loan data collection
- § 1691d. Applicability of other laws
- § 1691e. Civil liability
- § 1691f. Annual reports to Congress; contents
§ 1691. Scope of prohibition
(a) Activities constituting discriminationIt shall be unlawful for any creditor to discriminate against any applicant, with respect to any aspect of a credit transaction—
(1) on the basis of race, color, religion, national origin, sex or marital status, or age (provided the applicant has the capacity to contract);
(2) because all or part of the applicant’s income derives from any public assistance program; or
(3) because the applicant has in good faith exercised any right under this chapter.
(b) Activities not constituting discriminationIt shall not constitute discrimination for purposes of this subchapter for a creditor—
(1) to make an inquiry of marital status if such inquiry is for the purpose of ascertaining the creditor’s rights and remedies applicable to the particular extension of credit and not to discriminate in a determination of credit-worthiness;
(2) to make an inquiry of the applicant’s age or of whether the applicant’s income derives from any public assistance program if such inquiry is for the purpose of determining the amount and probable continuance of income levels, credit history, or other pertinent element of credit-worthiness as provided in regulations of the Bureau;
(3) to use any empirically derived credit system which considers age if such system is demonstrably and statistically sound in accordance with regulations of the Bureau, except that in the operation of such system the age of an elderly applicant may not be assigned a negative factor or value;
(4) to make an inquiry or to consider the age of an elderly applicant when the age of such applicant is to be used by the creditor in the extension of credit in favor of such applicant; or
(5) to make an inquiry under section 1691c–2 of this title, in accordance with the requirements of that section.
(c) Additional activities not constituting discriminationIt is not a violation of this section for a creditor to refuse to extend credit offered pursuant to—
(1) any credit assistance program expressly authorized by law for an economically disadvantaged class of persons;
(2) any credit assistance program administered by a nonprofit organization for its members or an economically disadvantaged class of persons; or
(3) any special purpose credit program offered by a profit-making organization to meet special social needs which meets standards prescribed in regulations by the Bureau;
if such refusal is required by or made pursuant to such program.
(d) Reason for adverse action; procedure applicable; “adverse action” defined
(1) Within thirty days (or such longer reasonable time as specified in regulations of the Bureau for any class of credit transaction) after receipt of a completed application for credit, a creditor shall notify the applicant of its action on the application.
(2) Each applicant against whom adverse action is taken shall be entitled to a statement of reasons for such action from the creditor. A creditor satisfies this obligation by—
(A) providing statements of reasons in writing as a matter of course to applicants against whom adverse action is taken; or
(B) giving written notification of adverse action which discloses (i) the applicant’s right to a statement of reasons within thirty days after receipt by the creditor of a request made within sixty days after such notification, and (ii) the identity of the person or office from which such statement may be obtained. Such statement may be given orally if the written notification advises the applicant of his right to have the statement of reasons confirmed in writing on written request.
(3) A statement of reasons meets the requirements of this section only if it contains the specific reasons for the adverse action taken.
(4) Where a creditor has been requested by a third party to make a specific extension of credit directly or indirectly to an applicant, the notification and statement of reasons required by this subsection may be made directly by such creditor, or indirectly through the third party, provided in either case that the identity of the creditor is disclosed.
(5) The requirements of paragraph (2), (3), or (4) may be satisfied by verbal statements or notifications in the case of any creditor who did not act on more than one hundred and fifty applications during the calendar year preceding the calendar year in which the adverse action is taken, as determined under regulations of the Bureau.
(6) For purposes of this subsection, the term “adverse action” means a denial or revocation of credit, a change in the terms of an existing credit arrangement, or a refusal to grant credit in substantially the amount or on substantially the terms requested. Such term does not include a refusal to extend additional credit under an existing credit arrangement where the applicant is delinquent or otherwise in default, or where such additional credit would exceed a previously established credit limit.
(e) Copies furnished to applicants
(1) In general
(2) Waiver
(3) Reimbursement
(4) Free copy
(5) Notification to applicants
(6) Valuation defined
(Pub. L. 90–321, title VII, § 701, as added Pub. L. 93–495, title V, § 503, Oct. 28, 1974, 88 Stat. 1521; amended Pub. L. 94–239, § 2, Mar. 23, 1976, 90 Stat. 251; Pub. L. 102–242, title II, § 223(d), Dec. 19, 1991, 105 Stat. 2306; Pub. L. 111–203, title X, §§ 1071(b), 1085(1), title XIV, § 1474, July 21, 2010, 124 Stat. 2059, 2083, 2199.)
§ 1691a. Definitions; rules of construction
(a) The definitions and rules of construction set forth in this section are applicable for the purposes of this subchapter.
(b) The term “applicant” means any person who applies to a creditor directly for an extension, renewal, or continuation of credit, or applies to a creditor indirectly by use of an existing credit plan for an amount exceeding a previously established credit limit.
(c) The term “Bureau” means the Bureau of Consumer Financial Protection.
(d) The term “credit” means the right granted by a creditor to a debtor to defer payment of debt or to incur debts and defer its payment or to purchase property or services and defer payment therefor.
(e) The term “creditor” means any person who regularly extends, renews, or continues credit; any person who regularly arranges for the extension, renewal, or continuation of credit; or any assignee of an original creditor who participates in the decision to extend, renew, or continue credit.
(f) The term “person” means a natural person, a corporation, government or governmental subdivision or agency, trust, estate, partnership, cooperative, or association.
(g) Any reference to any requirement imposed under this subchapter or any provision thereof includes reference to the regulations of the Bureau under this subchapter or the provision thereof in question.
(Pub. L. 90–321, title VII, § 702, as added Pub. L. 93–495, title V, § 503, Oct. 28, 1974, 88 Stat. 1522; amended Pub. L. 111–203, title X, § 1085(1), (2), July 21, 2010, 124 Stat. 2083.)
§ 1691b. Promulgation of regulations by the Bureau
(a) In general
(b) Exempt transactions
(c) Limitation on exemptions
(d) Maintenance of records
(e) Notice of denial of loan
(f) Board authority
(g) Deference
(Pub. L. 90–321, title VII, § 703, as added Pub. L. 93–495, title V, § 503, Oct. 28, 1974, 88 Stat. 1522; amended Pub. L. 94–239, § 3(a), Mar. 23, 1976, 90 Stat. 252; Pub. L. 100–533, title III, § 301, Oct. 25, 1988, 102 Stat. 2692; Pub. L. 111–203, title X, § 1085(1), (3), July 21, 2010, 124 Stat. 2083.)
§ 1691c. Administrative enforcement
(a) Enforcing agenciesSubject to subtitle B of the Consumer Protection Financial Protection Act of 2010 1
1 So in original. Probably should be “Consumer Financial Protection Act of 2010”.
with 22 So in original. Probably should be “, compliance with”.
the requirements imposed under this subchapter shall be enforced under:(1) section 8 of the Federal Deposit Insurance 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 associations, 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 agencies, 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 National Credit Union Administration with respect 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 section 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 Administration with respect to any Federal land bank, Federal land bank association, Federal intermediate credit bank, and production credit association;
(7) The Securities Exchange Act of 1934 [15 U.S.C. 78a et seq.], by the Securities and Exchange 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 Business 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 subject to this subchapter.
The terms used in paragraph (1) that are not defined 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; additional agency powers
(c) Overall enforcement authority of Federal Trade Commission
(d) Rules and regulations by enforcing agencies
(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.)
§ 1691c–1. Incentives for self-testing and self-correction
(a) Privileged information
(1) Conditions for privilegeA 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 aspect 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 violation.
(2) Privileged self-testIf 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 applicant, 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 relating to compliance with this subchapter.
(b) Results of self-testing
(1) In generalNo provision of this section may be construed to prevent an applicant, department, or agency from obtaining or using a report or results of any self-test in any proceeding or civil action in which a violation of this subchapter is alleged, or in any examination or investigation of compliance with this subchapter if—
(A) the creditor or any person with lawful access to the report or results—
(i) voluntarily releases or discloses all, or any part of, the report or results to the applicant, department, or agency, or to the general public; or
(ii) refers to or describes the report or results as a defense to charges of violations of this subchapter against the creditor to whom the self-test relates; or
(B) the report or results are sought in conjunction with an adjudication or admission of a violation of this subchapter for the sole purpose of determining an appropriate penalty or remedy.
(2) Disclosure for determination of penalty or remedyAny report or results of a self-test that are disclosed for the purpose specified in paragraph (1)(B)—
(A) shall be used only for the particular proceeding in which the adjudication or admission referred to in paragraph (1)(B) is made; and
(B) may not be used in any other action or proceeding.
(c) AdjudicationAn applicant, department, or agency that challenges a privilege asserted under this section may seek a determination of the existence and application of that privilege in—
(1) a court of competent jurisdiction; or
(2) an administrative law proceeding with appropriate jurisdiction.
(Pub. L. 90–321, title VII, § 704A, as added Pub. L. 104–208, div. A, title II, § 2302(a)(1), Sept. 30, 1996, 110 Stat. 3009–420; amended Pub. L. 111–203, title X, § 1085(1), July 21, 2010, 124 Stat. 2083.)
§ 1691c–2. Small business loan data collection
(a) Purpose
(b) Information gathering
Subject to the requirements of this section, in the case of any application to a financial institution for credit for women-owned, minority-owned, or small business, the financial institution shall—
(1) inquire whether the business is a women-owned, minority-owned, or small business, without regard to whether such application is received in person, by mail, by telephone, by electronic mail or other form of electronic transmission, or by any other means, and whether or not such application is in response to a solicitation by the financial institution; and
(2) maintain a record of the responses to such inquiry, separate from the application and accompanying information.
(c) Right to refuse
(d) No access by underwriters
(1) Limitation
(2) Limited access
(e) Form and manner of information
(1) In general
(2) Itemization
Information compiled and maintained under paragraph (1) shall be itemized in order to clearly and conspicuously disclose—
(A) the number of the application and the date on which the application was received;
(B) the type and purpose of the loan or other credit being applied for;
(C) the amount of the credit or credit limit applied for, and the amount of the credit transaction or the credit limit approved for such applicant;
(D) the type of action taken with respect to such application, and the date of such action;
(E) the census tract in which is located the principal place of business of the women-owned, minority-owned, or small business loan applicant;
(F) the gross annual revenue of the business in the last fiscal year of the women-owned, minority-owned, or small business loan applicant preceding the date of the application;
(G) the race, sex, and ethnicity of the principal owners of the business; and
(H) any additional data that the Bureau determines would aid in fulfilling the purposes of this section.
(3) No personally identifiable information
(4) Discretion to delete or modify publicly available data
(f) Availability of information
(1) Submission to Bureau
(2) Availability of information
Information compiled and maintained under this section shall be—
(A) retained for not less than 3 years after the date of preparation;
(B) made available to any member of the public, upon request, in the form required under regulations prescribed by the Bureau;
(C) annually made available to the public generally by the Bureau, in such form and in such manner as is determined by the Bureau, by regulation.
(3) Compilation of aggregate data
The Bureau may, at its discretion—
(A) compile and aggregate data collected under this section for its own use; and
(B) make public such compilations of aggregate data.
(g) Bureau action
(1) In general
(2) Exceptions
(3) Guidance
(h) Definitions
For purposes of this section, the following definitions shall apply:
(1) Financial institution
(2) Small business
(3) Small business loan
(4) Minority
(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 minority individuals; and
(B) more than 50 percent of the net profit or loss of which accrues to 1 or more minority 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.)
§ 1691d. Applicability of other laws
(a) Requests for signature of husband and wife for creation of valid lien, etc.
(b) State property laws affecting creditworthiness
(c) State laws prohibiting separate extension of consumer credit to husband and wife
(d) Combining credit accounts of husband and wife with same creditor to determine permissible finance charges or loan ceilings under Federal or State laws
(e) Election of remedies under subchapter or State law; nature of relief determining applicability
(f) Compliance with inconsistent State laws; determination of inconsistency
(g) Exemption by regulation of credit transactions covered by State law; failure to comply with State law
(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.)
§ 1691e. Civil liability
(a) Individual or class action for actual damages
(b) Recovery of punitive damages in individual and class action for actual damages; exemptions; maximum amount of punitive damages in individual actions; limitation on total recovery in class actions; factors determining amount of award
(c) Action for equitable and declaratory relief
(d) Recovery of costs and attorney fees
(e) Good faith compliance with rule, regulation, or interpretation of Bureau or interpretation or approval by an official or employee of Bureau of Consumer Financial Protection duly authorized by Bureau
(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 responsibility for administrative enforcement under section 1691c of this title commences an enforcement proceeding within 5 years after the date of the occurrence of the violation,
(2) whenever the Attorney General commences 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 proceeding 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
(h) Authority for Attorney General to bring civil action; jurisdiction
(i) Recovery under both subchapter and fair housing enforcement provisions prohibited for violation based on same transaction
(j) Discovery of creditor’s granting standards
(k) Notice to HUD of violations
Whenever an agency referred to in paragraph (1), (2), or (3) 1 of section 1691c(a) of this title—
(1) has reason to believe, as a result of receiving a consumer complaint, conducting a consumer compliance examination, or otherwise, that a violation of this subchapter has occurred;
(2) has reason to believe that the alleged violation would be a violation of the Fair Housing Act [42 U.S.C. 3601 et seq.]; and
(3) does not refer the matter to the Attorney General pursuant to subsection (g),
the agency shall notify the Secretary of Housing and Urban Development of the violation, and shall notify the applicant that the Secretary of Housing and Urban Development has been notified of the alleged violation and that remedies for the violation may be available under the Fair Housing Act.
(Pub. L. 90–321, title VII, § 706, as added Pub. L. 93–495, title V, § 503, Oct. 28, 1974, 88 Stat. 1524; amended Pub. L. 94–239, § 6, Mar. 23, 1976, 90 Stat. 253; Pub. L. 102–242, title II, § 223(a)–(c), Dec. 19, 1991, 105 Stat. 2306; Pub. L. 111–203, title X, § 1085(1), (5)–(7), July 21, 2010, 124 Stat. 2083, 2085.)
§ 1691f. Annual reports to Congress; contents
Each year, the Bureau and the Attorney General shall, respectively, make reports to the Congress concerning the administration of their functions under this subchapter, including such recommendations as the Bureau and the Attorney General, respectively, deem necessary or appropriate. In addition, each report of the Bureau shall include its assessment of the extent to which compliance with the requirements of this subchapter is being achieved, and a summary of the enforcement actions taken by each of the agencies assigned administrative enforcement responsibilities under section 1691c of this title.
(Pub. L. 90–321, title VII, § 707, as added Pub. L. 94–239, § 7, Mar. 23, 1976, 90 Stat. 255; amended Pub. L. 96–221, title VI, § 610(c), Mar. 31, 1980, 94 Stat. 174; Pub. L. 111–203, title X, § 1085(1), July 21, 2010, 124 Stat. 2083.)