
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 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.
