§ 1693m. — 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: 15USC1693m]
TITLE 15--COMMERCE AND TRADE
CHAPTER 41--CONSUMER CREDIT PROTECTION
SUBCHAPTER VI--ELECTRONIC FUND TRANSFERS
Sec. 1693m. Civil liability
(a) Individual or class action for damages; amount of award
Except as otherwise provided by this section and section 1693h of
this title, any person who fails to comply with any provision of this
subchapter with respect to any consumer, except for an error resolved in
accordance with section 1693f of this title, is liable to such consumer
in an amount equal to the sum of--
(1) any actual damage sustained by such consumer as a result of
such failure;
(2)(A) in the case of an individual action, an amount not less
than $100 nor greater than $1,000; or
(B) in the case of a class action, such amount as the court may
allow, except that (i) as to each member of the class no minimum
recovery shall be applicable, and (ii) the total recovery under this
subparagraph in any class action or series of class actions arising
out of the same failure to comply by the same person shall not be
more than the lesser of $500,000 or 1 per centum of the net worth of
the defendant; and
(3) in the case of any successful action to enforce the
foregoing liability, the costs of the action, together with a
reasonable attorney's fee as determined by the court.
(b) Factors determining amount of award
In determining the amount of liability in any action under
subsection (a) of this section, the court shall consider, among other
relevant factors--
(1) in any individual action under subsection (a)(2)(A) of this
section, the frequency and persistence of noncompliance, the nature
of such noncompliance, and the extent to which the noncompliance was
intentional; or
(2) in any class action under subsection (a)(2)(B) of this
section, the frequency and persistence of noncompliance, the nature
of such noncompliance, the resources of the defendant, the number of
persons adversely affected, and the extent to which the
noncompliance was intentional.
(c) Unintentional violations; bona fide error
Except as provided in section 1693h of this title, a person may not
be held liable in any action brought under this section for a violation
of this subchapter if the person shows by a preponderance of evidence
that the violation was not intentional and resulted from a bona fide
error notwithstanding the maintenance of procedures reasonably adapted
to avoid any such error.
(d) Good faith compliance with rule, regulation, or interpretation of
Board or approval of duly authorized official or employee of
Federal Reserve System
No provision of this section or section 1693n of this title imposing
any liability shall apply to--
(1) any act done or omitted in good faith in conformity with any
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; or
(2) any failure to make disclosure in proper form if a financial
institution utilized an appropriate model clause issued by the
Board,
notwithstanding that after such act, omission, or failure has occurred,
such rule, regulation, approval, or model clause is amended, rescinded,
or determined by judicial or other authority to be invalid for any
reason.
(e) Notification to consumer prior to action; adjustment of consumer's
account
A person has no liability under this section for any failure to
comply with any requirement under this subchapter if, prior to the
institution of an action under this section, the person notifies the
consumer concerned of the failure, complies with the requirements of
this subchapter, and makes an appropriate adjustment to the consumer's
account and pays actual damages or, where applicable, damages in
accordance with section 1693h of this title.
(f) Action in bad faith or for harassment; attorney's fees
On a finding by the court that an unsuccessful action under this
section was brought in bad faith or for purposes of harassment, the
court shall award to the defendant attorney's fees reasonable in
relation to the work expended and costs.
(g) Jurisdiction of courts; time for maintenance of action
Without regard to the amount in controversy, any action under this
section may be brought in any United States district court, or in any
other court of competent jurisdiction, within one year from the date of
the occurrence of the violation.
(Pub. L. 90-321, title IX, Sec. 915, as added Pub. L. 95-630, title XX,
Sec. 2001, Nov. 10, 1978, 92 Stat. 3737.)
Section Referred to in Other Sections
This section is referred to in section 1693f of this title.
