
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 2, 2001]
[Document not affected by Public Laws enacted between
  January 2, 2001 and January 28, 2002]
[CITE: 15USC1691c-1]

 
                      TITLE 15--COMMERCE AND TRADE
 
                 CHAPTER 41--CONSUMER CREDIT PROTECTION
 
                 SUBCHAPTER IV--EQUAL CREDIT OPPORTUNITY
 
Sec. 1691c-1. Incentives for self-testing and self-correction


(a) Privileged information

                    (1) Conditions for privilege

        A report or result of a self-test (as that term is defined by 
    regulations of the Board) 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-test

        If 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 general

        No 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 remedy

        Any 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) Adjudication

    An 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, Sec. 704A, as added Pub. L. 104-208, div. A, 
title II, Sec. 2302(a)(1), Sept. 30, 1996, 110 Stat. 3009-420.)


                             Effective Date

    Section 2302(c) of div. A of Pub. L. 104-208 provided that:
    ``(1) In general.--Except as provided in paragraph (2), the 
privilege provided for in section 704A of the Equal Credit Opportunity 
Act [15 U.S.C. 1691c-1] or section 814A of the Fair Housing Act [42 
U.S.C. 3614-1] (as those sections are added by this section) shall apply 
to a self-test (as that term is defined pursuant to the regulations 
prescribed under subsection (a)(2) [set out below] or (b)(2) of this 
section [42 U.S.C. 3614-1 note], as appropriate) conducted before, on, 
or after the effective date of the regulations prescribed under 
subsection (a)(2) or (b)(2), as appropriate.
    ``(2) Exception.--The privilege referred to in paragraph (1) does 
not apply to such a self-test conducted before the effective date of the 
regulations prescribed under subsection (a) or (b), as appropriate, if--
        ``(A) before that effective date, a complaint against the 
    creditor or person engaged in residential real estate related 
    lending activities (as the case may be) was--
            ``(i) formally filed in any court of competent jurisdiction; 
        or
            ``(ii) the subject of an ongoing administrative law 
        proceeding;
        ``(B) in the case of section 704A of the Equal Credit 
    Opportunity Act, the creditor has waived the privilege pursuant to 
    subsection (b)(1)(A)(i) of that section; or
        ``(C) in the case of section 814A of the Fair Housing Act, the 
    person engaged in residential real estate related lending activities 
    has waived the privilege pursuant to subsection (b)(1)(A)(i) of that 
    section.''


                               Regulations

    Section 2302(a)(2) of div. A of Pub. L. 104-208 provided that:
    ``(A) In general.--Not later than 6 months after the date of 
enactment of this Act [Sept. 30, 1996], in consultation with the 
Secretary of Housing and Urban Development and the agencies referred to 
in section 704 of the Equal Credit Opportunity Act [15 U.S.C. 1691c], 
and after providing notice and an opportunity for public comment, the 
Board shall prescribe final regulations to implement section 704A of the 
Equal Credit Opportunity Act [15 U.S.C. 1691c-1], as added by this 
section.
    ``(B) Self-test.--
        ``(i) Definition.--The regulations prescribed under subparagraph 
    (A) shall include a definition of the term `self-test' for purposes 
    of section 704A of the Equal Credit Opportunity Act, as added by 
    this section.
        ``(ii) Requirement for self-test.--The regulations prescribed 
    under subparagraph (A) shall specify that a self-test shall be 
    sufficiently extensive to constitute a determination of the level 
    and effectiveness of compliance by a creditor with the Equal Credit 
    Opportunity Act [15 U.S.C. 1691 et seq.].
        ``(iii) Substantial similarity to certain fair housing act 
    regulations.--The regulations prescribed under subparagraph (A) 
    shall be substantially similar to the regulations prescribed by the 
    Secretary of Housing and Urban Development to carry out section 
    814A(d) of the Fair Housing Act [42 U.S.C. 3614-1(d)], as added by 
    this section.''
