II 

112TH CONGRESS 

2D SESSION S. 3207 

To amend title 10, United States Code, to provide for relief in civil actions 

for violations of the protections on credit extended to members of the 

Armed Forces and their dependents. 

IN THE SENATE OF THE UNITED STATES 

MAY 21, 2012 

Mr. BLUMENTHAL introduced the following bill; which was read twice and 

referred to the Committee on Armed Services 

A BILL 

To amend title 10, United States Code, to provide for relief 

in civil actions for violations of the protections on credit 

extended to members of the Armed Forces and their 

dependents. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. RELIEF IN CIVIL ACTIONS FOR VIOLATIONS OF 

2 PROTECTIONS ON CONSUMER CREDIT EX3 TENDED TO MEMBERS OF THE ARMED 

4 FORCES AND THEIR DEPENDENTS. 

5 (a) IN GENERAL.—Section 987(f) of title 10, United 

6 States Code, is amended by adding at the end the fol7 lowing new paragraph: 

8 ‘‘(5) CIVIL LIABILITY.— 

9 ‘‘(A) IN GENERAL.—A person who violates 

10 this section with respect to any person is civilly 

11 liable to such person for— 

12 ‘‘(i) any actual damage sustained as a 

13 result, but not less than $500 for each vio14 lation; 

15 ‘‘(ii) appropriate punitive damages; 

16 ‘‘(iii) appropriate equitable or declara17 tory relief; 

18 ‘‘(iv) any other relief provided by law; 

19 ‘‘(v) in any successful action to en20 force the foregoing liability, the costs of 

21 the action, together with reasonable attor22 ney fees as determined by the court; and 

23 ‘‘(vi) in any successful action by a de24 fendant under this section, if the court 

25 finds the action was brought in bad faith 

26 and for the purpose of harassment, attorVerDate Mar 15 2010 23:42 May 22, 2012 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3207.IS S3207

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1 ney fees of the defendant as determined by 

2 the court to be reasonable in relation to 

3 the work expended and costs incurred. 

4 ‘‘(B) DEFENSES.—A person may not be 

5 held liable for civil liability under this para6 graph if the person shows by a preponderance 

7 of evidence that the violation was not inten8 tional and resulted from a bona fide error not9 withstanding the maintenance of procedures 

10 reasonably adapted to avoid any such error. Ex11 amples of a bona fide error include clerical, cal12 culation, computer malfunction and program13 ming, and printing errors, except that an error 

14 of legal judgment with respect to a person’s ob15 ligations under this section is not a bona fide 

16 error. 

17 ‘‘(C) JURISDICTION AND VENUE; LIMITA18 TION.—An action for civil liability under this 

19 paragraph may be brought in any appropriate 

20 United States district court, without regard to 

21 the amount in controversy, or in any other 

22 court of competent jurisdiction, not later than 

23 the earlier of— 


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1 ‘‘(i) two years after the date of dis2 covery by the plaintiff of the violation that 

3 is the basis for such liability; or 

4 ‘‘(ii) five years after the date on which 

5 the violation that is the basis for such li6 ability occurs.’’. 

7 (b) EFFECTIVE DATE.—The amendment made by 

8 this section and shall take effect on the date of the enact9 ment of this Act, and shall apply with respect to consumer 

10 credit extended on or after that date. 

Æ 


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