To amend the Truth in Savings Act to enhance civil liability and other enforcement, and for other purposes.

Summary: Truth in Savings Enhancement Act of 2001 - Amends the Truth in Savings Act (TSA) to authorize State authorities to bring an action in a U.S. district court for injunctive relief to enforce compliance with its disclosure requirements for interest rates and fees on depository institution accounts.Amends the Omnibus Consolidated Appropriations Act, 1997 to repeal its repeal of the civil liability provisions of the TSA (thus reinstating civil liability sanctions with respect to non-compliant depository institutions).Revises the statute of limitations for civil actions against non-compliant depository institutions to allow it to run for one year from the later of the date the violation occurred (as under current law) or the date on which the customer first learned, or reasonably should have learned, based on all facts and information available to the public, of the violation.

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Truth in Savings Enhancement Act of 
2001''.

SEC. 2. IMPROVED ENFORCEMENT AUTHORITY.  

    Section 270 of the Truth in Savings Act (12 U.S.C. 4309) is amended 
by adding at the end the following new subsection:
    ``(d) State Action for Violations.--
            ``(1) Authority of the states.--In addition to such other 
        remedies as are provided under State law, if the attorney 
        general of a State, or an officer authorized by the State, has 
        reason to believe that any depository institution has violated 
        or is violating this subtitle, the State may--
                    ``(A) bring an action on behalf of the residents of 
                the State to enjoin such violation in any appropriate 
                United States district court or in any other court of 
                competent jurisdiction; and
                    ``(B) bring an action on behalf of the residents of 
                the State to enforce compliance with this subtitle, to 
                obtain damages, restitution, or other compensation on 
                behalf of the residents of such State, or to obtain 
                such further and other relief as the court may deem 
                appropriate.
            ``(2) Rights of federal agencies.--
                    ``(A) Notice.--The State shall serve prior written 
                notice of any action commenced under paragraph (1) with 
                respect to any depository institution upon the Federal 
                agency described in subsection (a) with respect to such 
                depository institution and shall provide such agency 
                with a copy of the complaint unless such prior notice 
                is not feasible, in which case the State shall serve 
                such notice immediately upon instituting such action.
                    ``(B) Intervening action.--Any agency described in 
                subsection (a) which receives a notice from a State 
                under subparagraph (A) with respect to any action 
                described in such subparagraph shall have the right--
                            ``(i) to move to stay the action, pending 
                        the final disposition of a pending Federal 
                        matter as described in paragraph (4);
                            ``(ii) to intervene in an action under 
                        paragraph (1);
                            ``(iii) upon so intervening, to be heard on 
                        all matters arising therein;
                            ``(iv) to remove the action to the 
                        appropriate United States district court; and
                            ``(v) to file petitions for appeal.
            ``(3) Investigatory powers.--For purposes of bringing any 
        action under this subsection, nothing in this subsection shall 
        prevent the attorney general, or officers of such State who are 
        authorized by such State to bring such actions, from exercising 
        the powers conferred on the attorney general or such officers 
        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 is 
        pending.--If any Federal agency described in subsection (a) has 
        instituted an enforcement action for a violation of this 
        subtitle, no State may, during the pendency of such action, 
        bring an action under this subsection against any depository 
        institution named in the enforcement action for any violation 
        of this subtitle that is alleged in that action.''.

SEC. 3. CIVIL LIABILITY PROVISIONS.

    (a) Civil Liability Provision Continued in Effect.--
            (1) In general.--Subsection (a) of section 2604 of Public 
        Law 104-208 (110 Stat. 3009--470) is amended to read as 
        follows:
    ``(a) [Repealed]''.
            (2) Rule of construction.--The enactment of section 2604(a) 
        of Public Law 104-208, as in effect prior to the repeal of such 
        section by paragraph (1) of this subsection) shall not be 
        construed as affecting the continued application of section 271 
        of the Truth in Savings Act (12 U.S.C. 4310) after the end of 
        the 5-year period beginning on the date of the enactment of 
        Public Law 104-208.
    (b) Adjustment of Civil Liability Amounts for Inflation.--Paragraph 
(2) of section 271(a) of the Truth in Savings Act (12 U.S.C. 4310(a)) 
is amended--
            (1) in subparagraph (A)--
                    (A) by striking ``$100'' and inserting ``$200''; 
                and
                    (B) by striking ``$1,000'' and inserting 
                ``$5,000''; and
            (2) in subparagraph (B)(ii), by striking ``lesser of 
        $500,000 or 1 percent of the net worth of the depository 
        institution involved'' and inserting ``the greater of--
                                    ``(I) the amount determined by 
                                multiplying the maximum amount of 
                                liability under subparagraph (A) for 
                                such failure to comply in an individual 
                                action by the number of members in the 
                                certified class; or
                                    ``(II) the amount equal to 2 
                                percent of the net worth of the 
                                depository institution.''.
    (c) Statute of Limitations.--Subsection (f) of section 271 of the 
Truth in Savings Act (12 U.S.C. 4310(e)) is amended by striking 
``within 1 year after the date of the occurrence of the violation 
involved'' and inserting ``before the end of the 1-year period 
beginning on the later of--
            ``(1) the date of the occurrence of the violation involved; 
        or
            ``(2) the date on which the customer first learned, or 
        reasonably should have learned, based on all the facts and 
        circumstances and information available to the public, of the 
        violation.''.
    (d) Access to Court Provision.--Section 271 of the Truth in Savings 
Act (12 U.S.C. 4310) is amended by adding at the end the following new 
subsection:
    ``(j) Availability of Statutory Remedies.--
            ``(1) In general.--No provision of any agreement or 
        contract between a consumer and any depository institution, 
        relating to a deposit account, which requires binding 
        arbitration or any other nonjudicial procedure to resolve any 
        controversy or settle any claim arising out of such contract or 
        any transaction covered by the contract, or the refusal to 
        perform the whole or any part of the transaction, shall be 
        enforceable to the extent that the construction or application 
        of such provision with respect to such controversy, claim, or 
        refusal would deny the consumer the right to bring any action 
        under this section or any other provision of this subtitle for 
        any liability of the depository institution to the consumer 
        under this subtitle.
            ``(2) Rule of construction.--Paragraph (1) shall not be 
        construed as creating any inference that any provision of any 
        contract or agreement described in such paragraph could be 
        construed so as to deny any consumer the right to bring an 
        action under this subtitle absent this subsection.''.

SEC. 4. EFFECT ON STATE LAW.

    Section 273 of the Truth in Savings Act (12 U.S.C. 4312) is amended 
by adding at the end the following new sentence: ``The Board may not 
determine that any State law is inconsistent with any provision of this 
subtitle if the Board determines that the protection such State law 
affords any consumer is greater than the protection provided by this 
subtitle.''.

SEC. 5. EFFECTIVE DATE.

    The amendments made by this Act to the Truth in Savings Act shall 
take effect at the end of the 60-day period beginning on the date of 
the enactment of this Act.