§ 1681s. — Administrative enforcement.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC1681s]
TITLE 15--COMMERCE AND TRADE
CHAPTER 41--CONSUMER CREDIT PROTECTION
SUBCHAPTER III--CREDIT REPORTING AGENCIES
Sec. 1681s. Administrative enforcement
(a) Enforcement by Federal Trade Commission
(1) Compliance with the requirements imposed under this subchapter
shall be enforced under the Federal Trade Commission Act [15 U.S.C. 41
et seq.] by the Federal Trade Commission with respect to consumer
reporting agencies and all other persons subject thereto, except to the
extent that enforcement of the requirements imposed under this
subchapter is specifically committed to some other government agency
under subsection (b) hereof. For the purpose of the exercise by the
Federal Trade Commission of its functions and powers under the Federal
Trade Commission Act, a violation of any requirement or prohibition
imposed under this subchapter shall constitute an unfair or deceptive
act or practice in commerce in violation of section 5(a) of the Federal
Trade Commission Act [15 U.S.C. 45(a)] and shall be subject to
enforcement by the Federal Trade Commission under section 5(b) thereof
[15 U.S.C. 45(b)] with respect to any consumer reporting agency or
person subject to enforcement by the Federal Trade Commission pursuant
to this subsection, irrespective of whether that person is engaged in
commerce or meets any other jurisdictional tests in the Federal Trade
Commission Act. The Federal Trade Commission shall have such procedural,
investigative, and enforcement powers, including the power to issue
procedural rules in enforcing compliance with the requirements imposed
under this subchapter and to require the filing of reports, the
production of documents, and the appearance of witnesses as though the
applicable terms and conditions of the Federal Trade Commission Act were
part of this subchapter. Any person violating any of the provisions of
this subchapter shall be subject to the penalties and entitled to the
privileges and immunities provided in the Federal Trade Commission Act
as though the applicable terms and provisions thereof were part of this
subchapter.
(2)(A) In the event of a knowing violation, which constitutes a
pattern or practice of violations of this subchapter, the Commission may
commence a civil action to recover a civil penalty in a district court
of the United States against any person that violates this subchapter.
In such action, such person shall be liable for a civil penalty of not
more than $2,500 per violation.
(B) In determining the amount of a civil penalty under subparagraph
(A), the court shall take into account the degree of culpability, any
history of prior such conduct, ability to pay, effect on ability to
continue to do business, and such other matters as justice may require.
(3) Notwithstanding paragraph (2), a court may not impose any civil
penalty on a person for a violation of section 1681s-2(a)(1) of this
title unless the person has been enjoined from committing the violation,
or ordered not to commit the violation, in an action or proceeding
brought by or on behalf of the Federal Trade Commission, and has
violated the injunction or order, and the court may not impose any civil
penalty for any violation occurring before the date of the violation of
the injunction or order.
(b) Enforcement by other agencies
Compliance with the requirements imposed under this subchapter with
respect to consumer reporting agencies, persons who use consumer reports
from such agencies, persons who furnish information to such agencies,
and users of information that are subject to subsection (d) of section
1681m of this title shall be enforced under--
(1) section 8 of the Federal Deposit Insurance Act [12 U.S.C.
1818], in the case of--
(A) national banks, and Federal branches and Federal
agencies of foreign banks, by the Office of the Comptroller of
the Currency;
(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 25(a) \1\ of the Federal Reserve Act [12
U.S.C. 601 et seq., 611 et seq.], by the Board of Governors of
the Federal Reserve System; and
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\1\ See References in Text note below.
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(C) banks insured by the Federal Deposit Insurance
Corporation (other than members of the Federal Reserve System)
and insured State branches of foreign banks, by the Board of
Directors of the Federal Deposit Insurance Corporation;
(2) section 8 of the Federal Deposit Insurance Act [12 U.S.C.
1818], by the Director of the Office of Thrift Supervision, in the
case of a savings association the deposits of which are insured by
the Federal Deposit Insurance Corporation;
(3) 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;
(4) subtitle IV of title 49, by the Secretary of Transportation,
with respect to all carriers subject to the jurisdiction of the
Surface Transportation Board;
(5) 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; and
(6) 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.
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).
(c) State action for violations
(1) Authority of States
In addition to such other remedies as are provided under State
law, if the chief law enforcement officer of a State, or an official
or agency designated by a State, has reason to believe that any
person has violated or is violating this subchapter, the State--
(A) may bring an action to enjoin such violation in any
appropriate United States district court or in any other court
of competent jurisdiction;
(B) subject to paragraph (5), may bring an action on behalf
of the residents of the State to recover--
(i) damages for which the person is liable to such
residents under sections 1681n and 1681o of this title as a
result of the violation;
(ii) in the case of a violation of section 1681s-2(a) of
this title, damages for which the person would, but for
section 1681s-2(c) of this title, be liable to such
residents as a result of the violation; or
(iii) damages of not more than $1,000 for each willful
or negligent violation; and
(C) in the case of any successful action under subparagraph
(A) or (B), shall be awarded the costs of the action and
reasonable attorney fees as determined by the court.
(2) Rights of Federal regulators
The State shall serve prior written notice of any action under
paragraph (1) upon the Federal Trade Commission or the appropriate
Federal regulator determined under subsection (b) of this section
and provide the Commission or appropriate Federal regulator with a
copy of its complaint, except in any case in which such prior notice
is not feasible, in which case the State shall serve such notice
immediately upon instituting such action. The Federal Trade
Commission or appropriate Federal regulator shall have the right--
(A) to intervene in the action;
(B) upon so intervening, to be heard on all matters arising
therein;
(C) to remove the action to the appropriate United States
district court; and
(D) to file petitions for appeal.
(3) Investigatory powers
For purposes of bringing any action under this subsection,
nothing in this subsection shall prevent the chief law enforcement
officer, or an official or agency designated by a State, from
exercising the powers conferred on the chief law enforcement officer
or such official by the laws of such State to conduct investigations
or to administer oaths or affirmations or to compel the attendance
of witnesses or the production of documentary and other evidence.
(4) Limitation on State action while Federal action pending
If the Federal Trade Commission or the appropriate Federal
regulator has instituted a civil action or an administrative action
under section 8 of the Federal Deposit Insurance Act [12 U.S.C.
1818] for a violation of this subchapter, no State may, during the
pendency of such action, bring an action under this section against
any defendant named in the complaint of the Commission or the
appropriate Federal regulator for any violation of this subchapter
that is alleged in that complaint.
(5) Limitations on State actions for violation of section
1681s-2(a)(1)
(A) Violation of injunction required
A State may not bring an action against a person under
paragraph (1)(B) for a violation of section 1681s-2(a)(1) of
this title, unless--
(i) the person has been enjoined from committing the
violation, in an action brought by the State under paragraph
(1)(A); and
(ii) the person has violated the injunction.
(B) Limitation on damages recoverable
In an action against a person under paragraph (1)(B) for a
violation of section 1681s-2(a)(1) of this title, a State may
not recover any damages incurred before the date of the
violation of an injunction on which the action is based.
(d) Enforcement under other authority
For the purpose of the exercise by any agency referred to in
subsection (b) of this section of its powers under any Act referred to
in that subsection, a violation of any requirement imposed under this
subchapter shall be deemed to be a violation of a requirement imposed
under that Act. In addition to its powers under any provision of law
specifically referred to in subsection (b) of this section, each of the
agencies referred to in that subsection may exercise, for the purpose of
enforcing compliance with any requirement imposed under this subchapter
any other authority conferred on it by law.
(e) Regulatory authority
(1) The Federal banking agencies referred to in paragraphs (1) and
(2) of subsection (b) of this section shall jointly prescribe such
regulations as necessary to carry out the purposes of this subchapter
with respect to any persons identified under paragraphs (1) and (2) of
subsection (b) of this section, and the Board of Governors of the
Federal Reserve System shall have authority to prescribe regulations
consistent with such joint regulations with respect to bank holding
companies and affiliates (other than depository institutions and
consumer reporting agencies) of such holding companies.
(2) The Board of the National Credit Union Administration shall
prescribe such regulations as necessary to carry out the purposes of
this subchapter with respect to any persons identified under paragraph
(3) of subsection (b) of this section.
(Pub. L. 90-321, title VI, Sec. 621, as added Pub. L. 91-508, title VI,
Sec. 601, Oct. 26, 1970, 84 Stat. 1134; amended Pub. L. 98-443,
Sec. 9(n), Oct. 4, 1984, 98 Stat. 1708; Pub. L. 101-73, title VII,
Sec. 744(l), Aug. 9, 1989, 103 Stat. 439; Pub. L. 102-242, title II,
Sec. 212(c), Dec. 19, 1991, 105 Stat. 2300; Pub. L. 102-550, title XVI,
Sec. 1604(a)(6), Oct. 28, 1992, 106 Stat. 4082; Pub. L. 104-88, title
III, Sec. 314, Dec. 29, 1995, 109 Stat. 948; Pub. L. 104-208, div. A,
title II, Secs. 2416-2418, Sept. 30, 1996, 110 Stat. 3009-450 to 3009-
452; Pub. L. 105-347, Sec. 6(6), Nov. 2, 1998, 112 Stat. 3211; Pub. L.
106-102, title V, Sec. 506(a), (b), Nov. 12, 1999, 113 Stat. 1441,
1442.)
References in Text
The Federal Trade Commission Act, referred to in subsec. (a), is act
Sept. 26, 1914, ch. 311, 38 Stat. 717, as amended, which is classified
generally to subchapter I (Sec. 41 et seq.) of chapter 2 of this title.
For complete classification of this Act to the Code, see section 58 of
this title and Tables.
Section 25(a) of the Federal Reserve Act, referred to in subsec.
(b)(1)(B), which is classified to subchapter II (Sec. 611 et seq.) of
chapter 6 of Title 12, Banks and Banking, was renumbered section 25A of
that act by Pub. L. 102-242, title I, Sec. 142(e)(2), Dec. 19, 1991, 105
Stat. 2281. Section 25 of the Federal Reserve Act is classified to
subchapter I (Sec. 601 et seq.) of chapter 6 of Title 12.
The Federal Credit Union Act, referred to in subsec. (b)(3), is act
June 26, 1934, ch. 750, 48 Stat. 1216, as amended, which is classified
generally to chapter 14 (Sec. 1751 et seq.) of Title 12. For complete
classification of this Act to the Code, see section 1751 of Title 12 and
Tables.
The Packers and Stockyards Act, 1921, referred to in subsec. (b)(6),
is act Aug. 15, 1921, ch. 64, 42 Stat. 159, as amended, which is
classified to chapter 9 (Sec. 181 et seq.) of Title 7, Agriculture. For
complete classification of this Act to the Code, see section 181 of
Title 7 and Tables.
This subchapter, referred to in subsec. (e), was in the original,
``this Act'' and was translated as reading ``this title'', meaning title
VI of Pub. L. 90-321, known as the Fair Credit Reporting Act, to reflect
the probable intent of Congress.
Codification
In subsec. (b)(4), ``subtitle IV of title 49'' substituted for ``the
Acts to regulate commerce'' on authority of Pub. L. 95-473, Sec. 3(b),
Oct. 17, 1978, 92 Stat. 1466, the first section of which enacted
subtitle IV of Title 49, Transportation.
In subsec. (b)(5), ``part A of subtitle VII of title 49''
substituted for ``the Federal Aviation Act of 1958 [49 App. U.S.C. 1301
et seq.]'' and ``that part'' substituted for ``that Act'' on authority
of Pub. L. 103-272, Sec. 6(b), July 5, 1994, 108 Stat. 1378, the first
section of which enacted subtitles II, III, and V to X of Title 49.
Amendments
1999--Subsec. (a)(4). Pub. L. 106-102, Sec. 506(b), struck out par.
(4) which read as follows: ``Neither the Commission nor any other agency
referred to in subsection (b) of this section may prescribe trade
regulation rules or other regulations with respect to this subchapter.''
Subsec. (d). Pub. L. 106-102, Sec. 506(a)(1), struck out at the end
``Notwithstanding the preceding, no agency referred to in subsection (b)
of this section may conduct an examination of a bank, savings
association, or credit union regarding compliance with the provisions of
this subchapter, except in response to a complaint (or if the agency
otherwise has knowledge) that the bank, savings association, or credit
union has violated a provision of this subchapter, in which case, the
agency may conduct an examination as necessary to investigate the
complaint. If an agency determines during an investigation in response
to a complaint that a violation of this subchapter has occurred, the
agency may, during its next 2 regularly scheduled examinations of the
bank, savings association, or credit union, examine for compliance with
this subchapter.''
Subsec. (e). Pub. L. 106-102, Sec. 506(a)(2), added subsec. (e) and
struck out heading and text of former subsec. (e). Text read as follows:
``The Board of Governors of the Federal Reserve System may issue
interpretations of any provision of this subchapter as such provision
may apply to any persons identified under paragraph (1), (2), and (3) of
subsection (b) of this section, or to the holding companies and
affiliates of such persons, in consultation with Federal agencies
identified in paragraphs (1), (2), and (3) of subsection (b) of this
section.''
1998--Subsec. (b). Pub. L. 105-347 struck out ``or (e)'' after
``subject to subsection (d)'' in introductory provisions.
1996--Subsec. (a). Pub. L. 104-208, Sec. 2416(b)(1), which directed
the amendment of subsec. (a) by inserting heading ``Enforcement by
Federal Trade Commission'' before ``Compliance with the requirements'',
was executed by making the insertion after ``(a)'', to reflect the
probable intent of Congress and the amendment by Pub. L. 104-208,
Sec. 2416(a). See below.
Pub. L. 104-208, Sec. 2416(a), inserted ``(1)'' after ``(a)'' and
added pars. (2) to (4).
Subsec. (b). Pub. L. 104-208, Sec. 2416(b)(2), inserted heading and
in introductory provisions substituted ``Compliance with the
requirements imposed under this subchapter with respect to consumer
reporting agencies, persons who use consumer reports from such agencies,
persons who furnish information to such agencies, and users of
information that are subject to subsection (d) or (e) of section 1681m
of this title shall be enforced under--'' for ``Compliance with the
requirements imposed under this subchapter with respect to consumer
reporting agencies and persons who use consumer reports from such
agencies shall be enforced under--''.
Subsec. (c). Pub. L. 104-208, Sec. 2417(2), added subsec. (c).
Former subsec. (c) redesignated (d).
Pub. L. 104-208, Sec. 2416(c), inserted at end ``Notwithstanding the
preceding, no agency referred to in subsection (b) of this section may
conduct an examination of a bank, savings association, or credit union
regarding compliance with the provisions of this subchapter, except in
response to a complaint (or if the agency otherwise has knowledge) that
the bank, savings association, or credit union has violated a provision
of this subchapter, in which case, the agency may conduct an examination
as necessary to investigate the complaint. If an agency determines
during an investigation in response to a complaint that a violation of
this subchapter has occurred, the agency may, during its next 2
regularly scheduled examinations of the bank, savings association, or
credit union, examine for compliance with this subchapter.''
Subsec. (d). Pub. L. 104-208, Sec. 2417(1), redesignated subsec. (c)
as (d).
Subsec. (e). Pub. L. 104-208, Sec. 2418, added subsec. (e).
1995--Subsec. (b)(4). Pub. L. 104-88 substituted ``Secretary of
Transportation, with respect to all carriers subject to the jurisdiction
of the Surface Transportation Board'' for ``Interstate Commerce
Commission with respect to any common carrier subject to those Acts''.
1992--Subsec. (b)(1)(C). Pub. L. 102-550 substituted semicolon for
period at end.
1991--Subsec. (b). Pub. L. 102-242, Sec. 212(c)(2), inserted at end
``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).''
Pub. L. 102-242, Sec. 212(c)(1), added par. (1) and struck out
former par. (1) which read as follows: ``section 8 of the Federal
Deposit Insurance Act, in the case of:
``(A) national banks, by the Comptroller of the Currency;
``(B) member banks of the Federal Reserve System (other than
national banks), by the Federal Reserve Board; and
``(C) banks insured by the Federal Deposit Insurance Corporation
(other than members of the Federal Reserve System), by the Board of
Directors of the Federal Deposit Insurance Corporation.''
1989--Subsec. (b)(2). Pub. L. 101-73 amended par. (2) generally.
Prior to amendment, par. (2) read as follows: ``section 5(d) of the Home
Owners Loan Act of 1933, section 407 of the National Housing Act, and
sections 6(i) and 17 of the Federal Home Loan Bank Act, by the Federal
Home Loan Bank Board (acting directly or through the Federal Savings and
Loan Insurance Corporation), in the case of any institution subject to
any of those provisions;''.
1984--Subsec. (b)(5). Pub. L. 98-443 substituted ``Secretary of
Transportation'' for ``Civil Aeronautics Board''.
Effective Date of 1998 Amendment
Amendment by Pub. L. 105-347 deemed to have same effective date as
amendments made by section 2403 of Pub. L. 104-208, see section 7 of
Pub. L. 105-347, set out as a note under section 1681a of this title.
Effective Date of 1996 Amendment
Amendment by Pub. L. 104-208 effective 365 days after Sept. 30,
1996, with special rule for early compliance, see section 2420 of Pub.
L. 104-208, set out as a note under section 1681a of this title.
Effective Date of 1995 Amendment
Amendment by Pub. L. 104-88 effective Jan. 1, 1996, see section 2 of
Pub. L. 104-88, set out as an Effective Date note under section 701 of
Title 49, Transportation.
Effective Date of 1992 Amendment
Amendment by Pub. L. 102-550 effective as if included in the Federal
Deposit Insurance Corporation Improvement Act of 1991, Pub. L. 102-242,
as of Dec. 19, 1991, see section 1609(a) of Pub. L. 102-550, set out as
a note under section 191 of Title 12, Banks and Banking.
Effective Date of 1984 Amendment
Amendment by Pub. L. 98-443 effective Jan. 1, 1985, see section 9(v)
of Pub. L. 98-443, set out as a note under section 5314 of Title 5,
Government Organization and Employees.
Section Referred to in Other Sections
This section is referred to in sections 1681g, 1681s-2 of this
title.
