§ 1691e. — Civil liability.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 15USC1691e]
TITLE 15--COMMERCE AND TRADE
CHAPTER 41--CONSUMER CREDIT PROTECTION
SUBCHAPTER IV--EQUAL CREDIT OPPORTUNITY
Sec. 1691e. Civil liability
(a) Individual or class action for actual damages
Any creditor who fails to comply with any requirement imposed under
this subchapter shall be liable to the aggrieved applicant for any
actual 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; exemptions; maximum amount of punitive damages
in individual actions; limitation on total recovery in class
actions; factors determining amount of award
Any creditor, other than a government or governmental 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 actual
damages provided in subsection (a) of this section, except that in the
case of a class action the total recovery 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 factors, the amount of
any actual damages awarded, the frequency and persistence of failures of
compliance by the creditor, the resources of the creditor, the number of
persons adversely affected, 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 subsection (a), (b), or
(c) of this section, the costs of the action, together with a reasonable
attorney's fee as determined by the court, shall be added to any damages
awarded by the court under such subsection.
(e) Good faith compliance with rule, regulation, or interpretation of
Board or interpretation or approval by an official or employee
of Federal Reserve System duly authorized by Board
No provision of this subchapter imposing liability shall apply to
any act done or omitted in good faith in conformity with any official
rule, regulation, or interpretation thereof by the Board or in
conformity with any interpretation or approval by an official or
employee of the Federal Reserve System duly authorized by the Board to
issue such interpretations or approvals under such procedures as the
Board may prescribe therefor, notwithstanding that after such act or
omission has occurred, such rule, regulation, interpretation, or
approval 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 two years from 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 two years from the date of the
occurrence of the violation,
(2) whenever the Attorney General commences a civil action under
this section within two years from 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
The agencies having responsibility for administrative enforcement
under section 1691c of this title, if unable to obtain compliance with
section 1691 of this title, are authorized to refer the matter to the
Attorney General with a recommendation that an appropriate civil action
be instituted. Each agency referred to in paragraphs (1), (2), and (3)
of section 1691c(a) of this title shall refer the matter to the Attorney
General whenever the agency has reason to believe that 1 or more
creditors has engaged in a pattern or practice of discouraging or
denying applications for credit in violation of section 1691(a) of this
title. Each such agency may refer the matter to the Attorney General
whenever the agency has reason to believe that 1 or more creditors has
violated section 1691(a) of this title.
(h) Authority for Attorney General to bring civil action; jurisdiction
When a matter is referred to the Attorney General pursuant to
subsection (g) of this section, or whenever he has reason to believe
that one or more creditors are engaged in a pattern or practice in
violation of this subchapter, the Attorney General may bring a civil
action in any appropriate United States district court for such relief
as may be appropriate, including actual and punitive damages and
injunctive relief.
(i) Recovery under both subchapter and fair housing enforcement
provisions prohibited for violation based on same transaction
No person aggrieved by a violation of this subchapter and by a
violation of section 3605 of title 42 shall recover under this
subchapter and section 3612 \1\ of title 42, if such violation is based
on the same transaction.
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\1\ See References in Text note below.
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(j) Discovery of creditor's granting standards
Nothing in this subchapter shall be construed to prohibit the
discovery of a creditor's credit granting standards under appropriate
discovery procedures in the court or agency in which an action or
proceeding is brought.
(k) Notice to HUD of violations
Whenever an agency referred to in paragraph (1), (2), or (3) 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) of this section,
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, Sec. 706, as added Pub. L. 93-495, title V,
Sec. 503, Oct. 28, 1974, 88 Stat. 1524; amended Pub. L. 94-239, Sec. 6,
Mar. 23, 1976, 90 Stat. 253; Pub. L. 102-242, title II, Sec. 223(a)-(c),
Dec. 19, 1991, 105 Stat. 2306.)
References in Text
Section 3612 of title 42, referred to in subsec. (i), which related
to enforcement of the Fair Housing Act (42 U.S.C. 3601 et seq.) by
private persons, was repealed by Pub. L. 100-430, Sec. 8(2), Sept. 13,
1988, 102 Stat. 1625. See section 3613 of Title 42, The Public Health
and Welfare.
The Fair Housing Act, referred to in subsec. (k), is title VIII of
Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended, which is
classified principally to subchapter I (Sec. 3601 et seq.) of chapter 45
of Title 42. For complete classification of this Act to the Code, see
Short Title note set out under section 3601 of Title 42 and Tables.
Amendments
1991--Subsec. (g). Pub. L. 102-242, Sec. 223(a), inserted at end
``Each agency referred to in paragraphs (1), (2), and (3) of section
1691c(a) of this title shall refer the matter to the Attorney General
whenever the agency has reason to believe that 1 or more creditors has
engaged in a pattern or practice of discouraging or denying applications
for credit in violation of section 1691(a) of this title. Each such
agency may refer the matter to the Attorney General whenever the agency
has reason to believe that 1 or more creditors has violated section
1691(a) of this title.''
Subsec. (h). Pub. L. 102-242, Sec. 223(b), inserted ``actual and
punitive damages and'' after ``be appropriate, including''.
Subsec. (k). Pub. L. 102-242, Sec. 223(c), added subsec. (k).
1976--Subsec. (a). Pub. L. 94-239 substituted reference to member
for reference to representative.
Subsec. (b). Pub. L. 94-239 inserted provisions exempting government
or governmental subdivision or agency from requirements of this
subchapter, incorporated provisions contained in former subsec. (c)
relating to recovery in class actions and, as incorporated, raised the
total amount of recovery under a class action from $100,000 to $500,000.
Subsec. (c). Pub. L. 94-239 redesignated subsec. (d) as (c) and
specified United States district court or other court of competent
jurisdiction as court in which to bring action, and substituted
provisions authorizing such court to grant equitable and declaratory
relief, for provisions authorizing civil actions for preventive relief.
Provisions of former subsec. (c) were incorporated into present subsec.
(b) and amended.
Subsec. (d). Pub. L. 94-239 redesignated subsec. (e) as (d) and made
minor changes in phraseology. Former subsec. (d) redesignated (c) and
amended.
Subsec. (e). Pub. L. 94-239 redesignated subsec. (f) as (e) and
inserted reference to officially promulgated rule, regulation, or
interpretation and provisions relating to approval and interpretations
by an official or employee of the Federal Reserve System duly authorized
by the Board. Former subsec. (e) redesignated (d) and amended.
Subsec. (f). Pub. L. 94-239 redesignated subsec. (g) as (f) and
inserted provisions which substituted a two year limitation for one year
limitation and provisions extending time in which to bring action under
enumerated conditions. Former subsec. (f) redesignated (e) and amended.
Subsecs. (g) to (j). Pub. L. 94-239 added subsecs. (g) to (j).
Former subsec. (g) redesignated (f) and amended.
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.
