I 

111TH CONGRESS 

1ST SESSION H. R. 3126 

To establish the Consumer Financial Protection Agency, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JULY 8, 2009 

Mr. FRANK of Massachusetts (for himself, Ms. WATERS, Mrs. MALONEY, Mr. 

GUTIERREZ, Mr. WATT, Mr. ACKERMAN, Mr. SHERMAN, Mr. CAPUANO, 

Mr. MILLER of North Carolina, Mr. AL GREEN of Texas, Mr. ELLISON, 

Ms. SPEIER, and Mr. GRAYSON) introduced the following bill; which was 

referred to the Committee on Financial Services, and in addition to the 

Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To establish the Consumer Financial Protection Agency, and 

for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Consumer Financial 

5 Protection Agency Act of 2009’’. 

6 SEC. 2. TABLE OF CONTENTS. 

7 The table of contents for this Act is as follows: 


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Sec. 1. Short title. 

Sec. 2. Table of contents. 

TITLE I—CONSUMER FINANCIAL PROTECTION AGENCY 

Sec. 101. Definitions. 

Subtitle A—Establishment of the Agency 

Sec. 111. Establishment of the Consumer Financial Protection Agency. 

Sec. 112. Board. 

Sec. 113. Executive and administrative powers. 

Sec. 114. Administration. 

Sec. 115. Consumer Advisory Board. 

Sec. 116. Coordination. 

Sec. 117. Reports to the Congress. 

Sec. 118. Funding; fees and assessments; penalties and fines. 

Sec. 119. Effective date. 

Subtitle B—General Powers of the Agency 

Sec. 121. Mandate and objectives. 

Sec. 122. Authorities. 

Sec. 123. Collection of information; confidentiality rules. 

Sec. 124. Monitoring; assessments of significant rules; reports. 

Sec. 125. Authority to restrict mandatory pre-dispute arbitration. 

Sec. 126. Effective date. 

Subtitle C—Specific Authorities 

Sec. 131. Prohibiting unfair, deceptive, or abusive acts or practices. 

Sec. 132. Disclosures and communications. 

Sec. 133. Sales practices. 

Sec. 134. Pilot disclosures. 

Sec. 135. Adopting operational standards to deter unfair, deceptive, or abusive 

practices. 

Sec. 136. Standard consumer financial products or services. 

Sec. 137. Duties. 

Sec. 138. Consumer rights to access information. 

Sec. 139. Prohibited acts. 

Sec. 140. Effective date. 

Subtitle D—Preservation of State Law 

Sec. 141. Relation to State law. 

Sec. 142. Preservation of enforcement powers of States. 

Sec. 143. State law preemption standards for national banks and subsidiaries 

clarified. 

Sec. 144. Visitorial standards. 

Sec. 145. Clarification of law applicable to nondepository institution subsidiaries. 

Sec. 146. State law preemption standards for Federal savings associations and 

subsidiaries clarified. 

Sec. 147. Visitorial standards. 

Sec. 148. Clarification of law applicable to nondepository institution subsidiaries. 

Sec. 149. Effective date. 


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Subtitle E—Enforcement Powers 

Sec. 151. Definitions. 

Sec. 152. Investigations and administrative discovery. 

Sec. 153. Hearings and adjudication proceedings. 

Sec. 154. Litigation authority. 

Sec. 155. Relief available. 

Sec. 156. Referrals for criminal proceedings. 

Sec. 157. Employee protection. 

Sec. 158. Effective date. 

Subtitle F—Transfer of Functions and Personnel; Transitional Provisions 

Sec. 161. Transfer of certain functions. 

Sec. 162. Designated transfer date. 

Sec. 163. Savings provisions. 

Sec. 164. Transfer of certain personnel. 

Sec. 165. Incidental transfers. 

Sec. 166. Interim authority of the Secretary. 

Subtitle G—Regulatory Improvements 

Sec. 171. Collection of deposit account data. 

Sec. 172. Small business data collection. 

Subtitle H—Conforming Amendments 

Sec. 181. Amendments to the Inspector General Act of 1978. 

Sec. 182. Amendments to the Privacy Act of 1974. 

Sec. 183. Amendments to the Alternative Mortgage Transaction Parity Act of 

1982. 

Sec. 184. Amendments to the Consumer Credit Protection Act. 

Sec. 185. Amendments to the Expedited Funds Availability Act. 

Sec. 186. Amendments to the Federal Deposit Insurance Act. 

Sec. 187. Amendments to the Gramm-Leach-Bliley Act. 

Sec. 188. Amendments to the Home Mortgage Disclosure Act of 1975. 

Sec. 189. Amendments to division D of the Omnibus Appropriations Act, 2009. 

Sec. 190. Amendments to the Real Estate Settlement Procedures Act of 1974. 

Sec. 191. Amendments to the Right to Financial Privacy Act of 1978. 

Sec. 192. Amendments to the Secure and Fair Enforcement for Mortgage Licensing Act of 2008. 

Sec. 193. Amendments to the Truth in Savings Act. 

Sec. 194. Effective date. 

TITLE J—IMPROVEMENTS TO THE FEDERAL TRADE COMMISSION 

ACT 

Sec. 201. Amendments to the Federal Trade Commission Act. 


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1 TITLE I—CONSUMER FINANCIAL 

2 PROTECTION AGENCY 

3 SEC. 101. DEFINITIONS. 

4 For the purposes of subtitles A through F of this 

5 title, the following definitions shall apply: 

6 (1) AFFILIATE.—The term ‘‘affiliate’’ means 

7 any person that controls, is controlled by, or is 

8 under common control with another person. 

9 (2) AGENCY.—The term ‘‘Agency’’ means the 

10 Consumer Financial Protection Agency. 

11 (3) ALTERNATIVE CONSUMER FINANCIAL PROD12 UCT OR SERVICE.—The term ‘‘alternative consumer 

13 financial product or service’’ means a consumer fi14 nancial product or service that is of the same type 

15 or class as a standard consumer financial product or 

16 service, but that contains different or additional 

17 terms, fees, or features. 

18 (4) APPOINTED BOARD MEMBER.—The term 

19 ‘‘appointed Board member’’ or ‘‘appointed Board 

20 members’’ means a member or members of the 

21 Board appointed by the President under section 

22 112(a)(1). 

23 (5) BOARD.—The term ‘‘Board’’ means the 

24 Board of the Consumer Financial Protection Agen25 cy. 


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1 (6) BOARD OF GOVERNORS.—The term ‘‘Board 

2 of Governors’’ means the Board of Governors of the 

3 Federal Reserve System. 

4 (7) CONSUMER.—The term ‘‘consumer’’ means 

5 an individual or an agent, trustee, or representative 

6 acting on behalf of an individual. 

7 (8) CONSUMER FINANCIAL PRODUCT OR SERV8 ICE.—The term ‘‘consumer financial product or 

9 service’’ means any financial product or service to be 

10 used by a consumer primarily for personal, family, 

11 or household purposes. 

12 (9) COVERED PERSON.—The term ‘‘covered 

13 person’’ means— 

14 (A) any person who engages directly or in15 directly in a financial activity, in connection 

16 with the provision of a consumer financial prod17 uct or service; or 

18 (B) any person who, in connection with the 

19 provision of a consumer financial product or 

20 service, provides a material service to, or proc21 esses a transaction on behalf of, a person de22 scribed in subparagraph (A). 

23 (10) CREDIT.—The term ‘‘credit’’ means the 

24 right granted by a person to a consumer to defer 

25 payment of a debt, incur debt and defer its payment, 


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1 or purchase property or services and defer payment 

2 for such purchase. 

3 (11) CREDIT UNION.—The term ‘‘credit union’’ 

4 means a Federal credit union, State credit union, or 

5 State-chartered credit union as defined in section 

6 101 of the Federal Credit Union Act (12 U.S.C. 

7 1752). 

8 (12) DEPOSIT.—The term ‘‘deposit’’— 

9 (A) has the same meaning as in section 

10 3(l) of the Federal Deposit Insurance Act; and 

11 (B) includes a share in a member account 

12 (as defined in section 101(5) of the Federal 

13 Credit Union Act) at a credit union. 

14 (13) DEPOSIT-TAKING ACTIVITY.—The term 

15 ‘‘deposit-taking activity’’ means— 

16 (A) the acceptance of deposits, the provi17 sion of other services related to the acceptance 

18 of deposits, or the maintenance of deposit ac19 counts; 

20 (B) the acceptance of money, the provision 

21 of other services related to the acceptance of 

22 money, or the maintenance of members’ share 

23 accounts by a credit union; or 

24 (C) the receipt of money or its equivalent, 

25 as the Agency may determine by regulation or 


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1 order, received or held by the covered person 

2 (or an agent for the person) for the purpose of 

3 facilitating a payment or transferring funds or 

4 value of funds by a consumer to a third party. 

5 For the purposes of this title, the Agency may deter6 mine that the term ‘‘deposit-taking activity’’ includes 

7 the receipt of money or its equivalent in connection 

8 with the sale or issuance of any payment instrument 

9 or stored value product or service. 

10 (14) DESIGNATED TRANSFER DATE.—The term 

11 ‘‘designated transfer date’’ has the meaning pro12 vided in section 162. 

13 (15) DIRECTOR.—The term ‘‘Director’’ means 

14 the Director of the Agency. 

15 (16) ENUMERATED CONSUMER LAWS.—The 

16 term ‘‘enumerated consumer laws’’ means each of 

17 the following: 

18 (A) The Alternative Mortgage Transaction 

19 Parity Act (12 U.S.C. 3801 et seq.). 

20 (B) The Electronic Funds Transfer Act 

21 (15 U.S.C. 1693 et seq.) 

22 (C) The Equal Credit Opportunity Act (15 

23 U.S.C. 1691 et seq.). 


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1 (D) The Fair Credit Reporting Act (15 

2 U.S.C. 1681 et seq.), except with respect to sec3 tions 615(e), 624, and 628. 

4 (E) The Fair Debt Collection Practices Act 

5 (15 U.S.C. 1692 et seq.). 

6 (F) Subsections (c), (d), (e), and (f) of sec7 tion 43 of the Federal Deposit Insurance Act 

8 (12 U.S.C. 1831t). 

9 (G) Sections 502, 503, 504, 505, 506, 

10 507, 508, and 509 of the Gramm-Leach-Bliley 

11 Act (15 U.S.C. 6802 et seq.). 

12 (H) The Home Mortgage Disclosure Act 

13 (12 U.S.C. 2801 et seq.). 

14 (I) The Real Estate Settlement Procedures 

15 Act (12 U.S.C. 2601 et seq.). 

16 (J) The Secure and Fair Enforcement for 

17 Mortgage Licensing Act (12 U.S.C. 5101 et 

18 seq.). 

19 (K) The Truth in Lending Act (15 U.S.C. 

20 1601 et seq.). 

21 (L) The Truth in Savings Act (12 U.S.C. 

22 4301 et seq.). 

23 (17) FEDERAL BANKING AGENCY.—The term 

24 ‘‘Federal banking agency’’ means the Board of Gov25 ernors, the Comptroller of the Currency, the DirecVerDate Nov 24 2008 22:09 Jul 09, 2009 Jkt 079200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H3126.IH H3126

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1 tor of the Office of Thrift Supervision, the Federal 

2 Deposit Insurance Corporation, or the National 

3 Credit Union Administration and the term ‘‘Federal 

4 banking agencies’’ means all of those agencies. 

5 (18) FINANCIAL ACTIVITY.—The term ‘‘finan6 cial activity’’ means any of the following activities: 

7 (A) Deposit-taking activities. 

8 (B) Extending credit and servicing loans, 

9 including— 

10 (i) acquiring, brokering, or servicing 

11 loans or other extensions of credit; 

12 (ii) engaging in any other activity 

13 usual in connection with extending credit 

14 or servicing loans, including performing 

15 appraisals of real estate and personal prop16 erty and selling or servicing credit insur17 ance or mortgage insurance. 

18 (C) Check-guaranty services, including— 

19 (i) authorizing a subscribing merchant 

20 to accept personal checks tendered by the 

21 merchant’s customers in payment for 

22 goods and services; and 

23 (ii) purchasing from a subscribing 

24 merchant validly authorized checks that 

25 are subsequently dishonored. 


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1 (D) Collecting, analyzing, maintaining, and 

2 providing consumer report information or other 

3 account information by covered persons, includ4 ing information relating to the credit history of 

5 consumers and providing the information to a 

6 credit grantor who is considering a consumer 

7 application for credit or who has extended cred8 it to the borrower. 

9 (E) Collection of debt related to any con10 sumer financial product or service. 

11 (F) Providing real estate settlement serv12 ices, including providing title insurance. 

13 (G) Leasing personal or real property or 

14 acting as agent, broker, or adviser in leasing 

15 such property if— 

16 (i) the lease is on a non-operating 

17 basis; 

18 (ii) the initial term of the lease is at 

19 least 90 days; and 

20 (iii) in the case of leases involving real 

21 property, at the inception of the initial 

22 lease, the transaction is intended to result 

23 in ownership of the leased property to be 

24 transferred to the lessee, subject to stand25 ards prescribed by the Agency. 


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1 (H) Acting as an investment adviser to any 

2 person (not subject to regulation by or required 

3 to register with the Commodity Futures Trad4 ing Commission or the Securities and Exchange 

5 Commission). 

6 (I) Acting as financial adviser to any per7 son, including— 

8 (i) providing financial and other re9 lated advisory services; 

10 (ii) providing educational courses, and 

11 instructional materials to consumers on in12 dividual financial management matters; or 

13 (iii) providing credit counseling, tax14 planning or tax-preparation services to any 

15 person. 

16 (J) Financial data processing, including 

17 providing data processing and data trans18 mission services, facilities (including data proc19 essing and data transmission hardware, soft20 ware, documentation, or operating personnel), 

21 databases, advice, and access to such services, 

22 facilities, or databases by any technological 

23 means, if— 


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1 (i) the data to be processed or fur2 nished are financial, banking, or economic; 

3 and 

4 (ii) the hardware provided in connec5 tion therewith is offered only in conjunc6 tion with software designed and marketed 

7 for the processing and transmission of fi8 nancial, banking, or economic data, and 

9 where the general purpose hardware does 

10 not constitute more than 30 percent of the 

11 cost of any packaged offering. 

12 (K) Money transmitting. 

13 (L) Sale or issuance of stored value. 

14 (M) Acting as a money services business. 

15 (N) Acting as a custodian of money or any 

16 financial instrument. 

17 (O) Any other activity that the Agency de18 fines, by regulation, as a financial activity for 

19 the purposes of this title, except that the Agen20 cy shall not define engaging in the business of 

21 insurance as a financial activity (other than 

22 with respect to credit insurance, mortgage in23 surance, or title insurance, as described in this 

24 section). 


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1 (19) FINANCIAL PRODUCT OR SERVICE.—The 

2 term ‘‘financial product or service’’ means any prod3 uct or service that, directly or indirectly, results 

4 from or is related to engaging in 1 or more financial 

5 activities. 

6 (20) FOREIGN EXCHANGE.—The term ‘‘foreign 

7 exchange’’ means the exchange, for compensation, of 

8 currency of the United States or of a foreign govern9 ment for currency of another government. 

10 (21) INSURED DEPOSITORY INSTITUTION.—The 

11 term ‘‘insured depository institution’’ has the same 

12 meaning as in section 3 of the Federal Deposit In13 surance Act. 

14 (22) MONEY SERVICES BUSINESS.—The term 

15 ‘‘money services business’’ means a covered person 

16 that— 

17 (A) receives currency, monetary value, or 

18 payment instruments for the purpose of ex19 changing or transmitting the same by any 

20 means, including transmission by wire, fac21 simile, electronic transfer, courier, the Internet, 

22 or through bill payment services, or other busi23 nesses that facilitate third-party transfers with24 in the United States or to or from the United 

25 States; or 


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1 (B) issues payment instruments or stored 

2 value. 

3 (23) MONEY TRANSMITTING.—The term 

4 ‘‘money transmitting’’ means the receipt by a cov5 ered person of currency, monetary value, or payment 

6 instruments for the purpose of transmitting the 

7 same to any third-party by any means, including 

8 transmission by wire, facsimile, electronic transfer, 

9 courier, the Internet, or through bill payment serv10 ices. 

11 (24) PAYMENT INSTRUMENT.—The term ‘‘pay12 ment instrument’’ means a check, draft, warrant, 

13 money order, traveler’s check, electronic instrument, 

14 or other instrument, payment of money, or monetary 

15 value (other than currency). 

16 (25) PERSON.—The term ‘‘person’’ means an 

17 individual, partnership, company, corporation, asso18 ciation (incorporated or unincorporated), trust, es19 tate, cooperative organization, or other entity. 

20 (26) PERSON REGULATED BY THE COMMODITY

21 FUTURES TRADING COMMISSION.—The term ‘‘person 

22 regulated by the Commodity Futures Trading Com23 mission’’ means any futures commission merchant, 

24 commodity trading adviser, commodity pool oper25 ator, or introducing broker that is subject to the juVerDate Nov 24 2008 22:09 Jul 09, 2009 Jkt 079200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H3126.IH H3126

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1 risdiction of the Commodity Futures Trading Com2 mission under the Commodity Exchange Act, but 

3 only to the extent that the person acts in such ca4 pacity. 

5 (27) PERSON REGULATED BY THE SECURITIES

6 AND EXCHANGE COMMISSION.—The term ‘‘person 

7 regulated by the Securities and Exchange Commis8 sion’’ means— 

9 (A) a broker or dealer that is required to 

10 be registered under the Securities Exchange Act 

11 of 1934; 

12 (B) an investment adviser that is required 

13 to be registered under the Investment Advisers 

14 Act of 1940; or 

15 (C) an investment company that is re16 quired to be registered under the Investment 

17 Company Act of 1940— 

18 but only to the extent that the person acts in a reg19 istered capacity. 

20 (28) PROVISION OF A CONSUMER FINANCIAL

21 PRODUCT OR SERVICE.—The term ‘‘provision of (or 

22 providing) a consumer financial product or service’’ 

23 means the advertisement, marketing, solicitation, 

24 sale, disclosure, delivery, or account maintenance or 

25 servicing of a consumer financial product or service. 


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1 (29) SECRETARY.—The term ‘‘Secretary’’ 

2 means the Secretary of the Treasury. 

3 (30) STANDARD CONSUMER FINANCIAL PROD4 UCT OR SERVICE.—The term ‘‘standard consumer fi5 nancial product or service’’ means a consumer finan6 cial product or service containing terms, conditions, 

7 and features defined by the Agency. 

8 (31) STATE.—The term ‘‘State’’ means any 

9 State, territory, or possession of the United States, 

10 the District of Columbia, Commonwealth of Puerto 

11 Rico, Commonwealth of the Northern Mariana Is12 lands, Guam, American Samoa, or the United States 

13 Virgin Islands. 

14 (32) STORED VALUE.—The term ‘‘stored value’’ 

15 means funds or monetary value represented in any 

16 electronic format, whether or not specially encrypted, 

17 and stored or capable of storage on electronic media 

18 in such a way as to be retrievable and transferred 

19 electronically, and includes a prepaid debit card or 

20 product, or any other similar product, regardless of 

21 whether the amount of the funds or monetary value 

22 may be increased or reloaded. 


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1 Subtitle A—Establishment of the 

2 Agency 

3 SEC. 111. ESTABLISHMENT OF THE CONSUMER FINANCIAL 

4 PROTECTION AGENCY. 

5 (a) AGENCY ESTABLISHED.—There is established the 

6 Consumer Financial Protection Agency as an independent 

7 agency in the executive branch to regulate the provision 

8 of consumer financial products or services under this title, 

9 the enumerated consumer laws, and the authorities trans10 ferred under subtitles F and H. 

11 (b) PRINCIPAL OFFICE.—The principal office of the 

12 Agency shall be located in the city of Washington, District 

13 of Columbia, at 1 or more sites. 

14 SEC. 112. BOARD. 

15 (a) COMPOSITION OF THE BOARD.—The Agency shall 

16 have a Board that is composed of 5 members as follows: 

17 (1) 4 members of the Board who shall be ap18 pointed by the President, by and with the advice and 

19 consent of the Senate— 

20 (A) from among individuals who are citi21 zens of the United States; and 

22 (B) who have a strong competencies and 

23 experiences related to consumer financial prod24 ucts or services; and 


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1 (2) the head of the agency responsible for char2 tering and regulating national banks. 

3 (b) DIRECTOR OF THE AGENCY.—From among the 

4 appointed Board members, the President shall designate 

5 1 member of the Board to serve as the Director and the 

6 Director shall be the chief executive of the Agency. 

7 (c) TERMS OF APPOINTED BOARD MEMBERS.— 

8 (1) IN GENERAL.—An appointed Board mem9 ber, including the Director of the Agency, shall serve 

10 for a term of 5 years. 

11 (2) REMOVAL FOR CAUSE.—The President may 

12 remove any appointed Board member for ineffi13 ciency, neglect of duty, or malfeasance in office. 

14 (3) VACANCIES.—Any member of the Board ap15 pointed to fill a vacancy occurring before the expira16 tion of the term to which that member’s predecessor 

17 was appointed (including the Director of the Agen18 cy) shall be appointed only for the remainder of the 

19 term. 

20 (4) CONTINUATION OF SERVICE.—Each ap21 pointed Board member may continue to serve after 

22 the expiration of the term of office to which that 

23 member was appointed until a successor has been 

24 appointed by the President and confirmed by the 

25 Senate. 


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1 (5) INITIAL APPOINTMENTS STAGGERED.—The 

2 appointed Board members (including the Director of 

3 the Agency) shall serve staggered terms, which ini4 tially shall be established by the President for terms 

5 of 2, 3, 4, and 5 years, respectively. 

6 (d) COMPENSATION.— 

7 (1) DIRECTOR.—The Director shall receive 

8 compensation at the rate prescribed for Level I of 

9 the Executive Schedule under section 5313 of title 

10 5, United States Code. 

11 (2) OTHER APPOINTED BOARD MEMBERS.—The 

12 3 other appointed Board members shall each receive 

13 compensation at the rate prescribed for Level II of 

14 the Executive Schedule under section 5314 of title 

15 5, United States Code. 

16 SEC. 113. EXECUTIVE AND ADMINISTRATIVE POWERS. 

17 (a) POWERS.—The Board may exercise all executive 

18 and administrative functions of the Agency, including to— 

19 (1) establish rules for conducting the Agency’s 

20 general business in a manner not inconsistent with 

21 this title; 

22 (2) bind the Agency and enter into contracts; 

23 (3) direct the establishment of and maintain di24 visions or other offices within the Agency in order to 

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1 ated consumer laws, and the authorities transferred 

2 under subtitles F and H, and to satisfy the require3 ments of other applicable law; 

4 (4) coordinate and oversee the operation of all 

5 administrative, enforcement, and research activities 

6 of the Agency; 

7 (5) adopt and use a seal; 

8 (6) determine the character of and the necessity 

9 for the Agency’s obligations and expenditures, and 

10 the manner in which they shall be incurred, allowed, 

11 and paid; 

12 (7) delegate authority, at the Agency’s lawful 

13 discretion, to the Director or to a member of the 

14 Board or to any officer or employee of the Agency 

15 to take action under any provision of this title or 

16 under other applicable law; 

17 (8) to implement this title and the Agency’s au18 thorities under the enumerated consumer laws and 

19 under subtitles F and H through rules, orders, guid20 ance, interpretations, statements of policy, examina21 tions, and enforcement actions; and 

22 (9) perform such other functions as may be au23 thorized or required by law. 

24 (b) TRANSACTING BUSINESS.— 


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1 (1) QUORUM.—3 members of the Board shall 

2 constitute a quorum for the transaction of business, 

3 except that if only 3 members of the Board are serv4 ing because of vacancies, 2 members of the Board 

5 shall constitute a quorum for the transaction of 

6 business. 

7 (2) VOTING.—Other than acts performed under 

8 delegated authority, the Board shall act through a 

9 majority vote of its members assembled. 

10 SEC. 114. ADMINISTRATION. 

11 (a) OFFICERS.—The Agency shall appoint the fol12 lowing officials: 

13 (1) A secretary, who shall be charged with 

14 maintaining the records of the Agency and per15 forming such other activities as the Board directs. 

16 (2) A general counsel, who shall be charged 

17 with overseeing the legal affairs of the Agency and 

18 performing such other activities as the Board di19 rects. 

20 (3) An inspector general, who shall have the au21 thority and functions of an inspector general of a 

22 designated Federal entity under the Inspector Gen23 eral Act of 1978 (5 U.S.C. App. 3). 

24 (b) PERSONNEL.— 

25 (1) APPOINTMENT.— 


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1 (A) IN GENERAL.—The Agency may fix 

2 the number of, and appoint and direct, all em3 ployees of the Agency. 

4 (B) EXPEDITED HIRING.—During the 2- 

5 year period beginning on the date of the enact6 ment of this Act, the Agency may appoint, 

7 without regard to the provisions of sections 

8 3309 through 3318, of title 5, United States 

9 Code, candidates directly to positions for which 

10 public notice has been given. 

11 (2) COMPENSATION.— 

12 (A) PAY.—The Agency shall fix, adjust, 

13 and administer the pay for all employees of the 

14 Agency without regard to the provisions of 

15 chapter 51 or subchapter III of chapter 53 of 

16 title 5, United States Code. 

17 (B) BENEFITS.—The Agency may provide 

18 additional benefits to Agency employees if the 

19 same type of benefits are then being provided 

20 by the Board of Governors or, if not then being 

21 provided, could be provided by the Board of 

22 Governors under applicable provisions of law, 

23 rule, or regulation. 

24 (C) MINIMUM STANDARD.—The Agency 

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1 efits to classes of employees that, at a min2 imum, are equivalent to the compensation and 

3 benefits provided by the Board of Governors for 

4 the corresponding class of employees in any fis5 cal year. 

6 (c) SPECIFIC FUNCTIONAL UNITS.— 

7 (1) RESEARCH.—The Agency shall establish a 

8 unit whose functions shall include researching, ana9 lyzing, and reporting on— 

10 (A) current and prospective developments 

11 in markets for consumer financial products or 

12 services, including market areas of alternative 

13 consumer financial products or services with 

14 high growth rates; 

15 (B) consumer awareness, understanding, 

16 and use of disclosures and communications re17 garding consumer financial products or services; 

18 (C) consumer awareness and under19 standing of costs, risks, and benefits of con20 sumer financial products or services; and 

21 (D) consumer behavior with respect to con22 sumer financial products or services. 

23 (2) COMMUNITY AFFAIRS.—The Agency shall 

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1 ance regarding the provision of consumer financial 

2 products or services to traditionally underserved con3 sumers and communities. 

4 (3) CONSUMER COMPLAINTS.—The Agency 

5 shall establish a unit whose functions shall include— 

6 (A) establishing a central database for col7 lecting and tracking information on consumer 

8 complaints about consumer financial products 

9 or services and resolution of complaints; and 

10 (B) sharing data and coordinating con11 sumer complaints with Federal banking agen12 cies, other Federal agencies, and State regu13 lators. 

14 SEC. 115. CONSUMER ADVISORY BOARD. 

15 (a) ESTABLISHMENT REQUIRED.—The Agency shall 

16 establish a Consumer Advisory Board to advise and con17 sult with the Agency in the exercise of its functions under 

18 this title, the enumerated consumer laws, and to provide 

19 information on emerging practices in the consumer finan20 cial products or services industry. 

21 (b) MEMBERSHIP.—In appointing the members of 

22 the Consumer Advisory Board, the Agency shall seek to 

23 assemble experts in financial services, community develop24 ment, and consumer financial products or services and 


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1 seek representation of the interests of covered persons and 

2 consumers. 

3 (c) MEETINGS.—The Consumer Advisory Board shall 

4 meet from time to time at the call of the Agency, but, 

5 at a minimum, shall meet at least twice in each year. 

6 (d) COMPENSATION AND TRAVEL EXPENSES.—Mem7 bers of the Consumer Advisory Board who are not full8 time employees of the United States shall— 

9 (1) be entitled to receive compensation at a rate 

10 fixed by the Agency while attending meetings of the 

11 Consumer Advisory Board, including travel time; 

12 and 

13 (2) be allowed travel expenses, including trans14 portation and subsistence, while away from their 

15 homes or regular places of business. 

16 SEC. 116. COORDINATION. 

17 (a) COORDINATION WITH OTHER FEDERAL AGEN18 CIES AND STATE REGULATORS.—The Agency shall coordi19 nate with the Securities and Exchange Commission, the 

20 Commodity Futures Trading Commission, and other Fed21 eral agencies and State regulators, as appropriate, to pro22 mote consistent regulatory treatment of consumer and in23 vestment products and services. 

24 (b) COORDINATION OF CONSUMER EDUCATION INI25 TIATIVES.— 


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1 (1) IN GENERAL.—The Agency shall coordinate 

2 with each agency that is a member of the Financial 

3 Literacy and Education Commission established by 

4 the Financial Literacy and Education Improvement 

5 Act (20 U.S.C. 9701 et seq.) to assist each agency 

6 in enhancing its existing financial literacy and edu7 cation initiatives to better achieve the goals in para8 graph (2) and to ensure the consistency of such ini9 tiatives across Federal agencies. 

10 (2) GOALS OF COORDINATION.—In coordinating 

11 with the agencies described in paragraph (1), the 

12 Agency shall seek to improve efforts to educate con13 sumers about financial matters generally, the man14 agement of their own financial affairs, and their 

15 judgments about the appropriateness of certain fi16 nancial products. 

17 SEC. 117. REPORTS TO THE CONGRESS. 

18 (a) REPORTS REQUIRED.—The Agency shall prepare 

19 and submit to the President and the appropriate commit20 tees of the Congress a report at the beginning of each reg21 ular session of the Congress, beginning with the session 

22 following the designated transfer date. 

23 (b) CONTENTS.—The reports required by subsection 

24 (a) shall include— 


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1 (1) a list of the significant rules and orders 

2 adopted by the Agency, as well as other significant 

3 initiatives conducted by the Agency, during the pre4 ceding year and the Agency’s plan for rules, orders, 

5 or other initiatives to be undertaken during the up6 coming period; 

7 (2) an analysis of complaints about consumer 

8 financial products or services that the Agency has 

9 received and collected in its central database on 

10 complaints during the preceding year; 

11 (3) a list, with a brief statement of the issues, 

12 of the public supervisory and enforcement actions to 

13 which the Agency is a party (including adjudication 

14 proceedings conducted under subtitle E) during the 

15 preceding year; and 

16 (4) an appraisal of significant actions, including 

17 actions under Federal or State law, by State attor18 neys general or State regulators relating to this title, 

19 the authorities transferred under subtitles F and H, 

20 and the enumerated consumer laws. 

21 SEC. 118. FUNDING; FEES AND ASSESSMENTS; PENALTIES 

22 AND FINES. 

23 (a) AUTHORIZATION OF APPROPRIATIONS.—For the 

24 purposes of carrying out the authorities granted in this 

25 title and the enumerated consumer laws and transferred 


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1 under subtitles F and H, there are appropriated to the 

2 Agency such sums as are necessary. Notwithstanding any 

3 other provision of law, such amounts shall be subject to 

4 apportionment under section 1517 of title 31, United 

5 States Code, and restrictions that generally apply to the 

6 use of appropriated funds in title 31, United States Code, 

7 and other laws. 

8 (b) FEES AND ASSESSMENTS ON COVERED PER9 SONS.— 

10 (1) RECOVERY OF EXPENDED FUNDS.—The 

11 Agency shall recover the amount of funds expended 

12 by the Agency under this title, through the collection 

13 of annual fees or assessments on covered persons. 

14 (2) RULEMAKING.—The Agency shall prescribe 

15 regulations to govern the collection of fees and as16 sessments. Such regulations shall specify and define 

17 the basis of fees or assessments (such as the out18 standing volume of consumer credit accounts, total 

19 assets under management, or consumer financial 

20 transactions), the amount and frequency of fees or 

21 assessments, and such other factors that the Agency 

22 deems appropriate. 

23 (3) FEES AND ASSESSMENTS AS MISCELLA24 NEOUS RECEIPTS.—All fees and assessments col25 lected under this title, the authorities transferred 


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1 under subtitles F and H, or any enumerated con2 sumer law shall be deposited into the Treasury as 

3 miscellaneous receipts. 

4 (c) PENALTIES AND FINES.— 

5 (1) ESTABLISHMENT OF VICTIMS RELIEF

6 FUND.—There is established in the Treasury of the 

7 United States a fund to be known as the ‘‘Consumer 

8 Financial Protection Agency Civil Penalty Fund’’ 

9 (referred to in this section as the ‘‘Fund’’). If the 

10 Agency obtains a civil penalty against any person in 

11 any judicial or administrative action under this title, 

12 the authorities transferred under subtitles F and H, 

13 or any enumerated consumer law, the Agency shall 

14 deposit into the Fund the amount of the penalty col15 lected. 

16 (2) PAYMENT TO VICTIMS.—Amounts in the 

17 Fund shall be available to the Agency, without fiscal 

18 year limitation, for payments to the victims of activi19 ties for which civil penalties have been imposed 

20 under this title, the authorities transferred under 

21 subtitles F and H, or any enumerated consumer law. 

22 SEC. 119. EFFECTIVE DATE. 

23 This subtitle shall take effect on the date of the en24 actment of this Act. 


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1 Subtitle B—General Powers of the 

2 Agency 

3 SEC. 121. MANDATE AND OBJECTIVES. 

4 (a) MANDATE.—The Agency shall seek to promote 

5 transparency, simplicity, fairness, accountability, and ac6 cess in the market for consumer financial products or serv7 ices. 

8 (b) OBJECTIVES.—The Agency is authorized to exer9 cise its authorities granted in this title, in the enumerated 

10 consumer laws, and transferred under subtitles F and H 

11 for the purposes of ensuring that— 

12 (1) consumers have, understand, and can use 

13 the information they need to make responsible deci14 sions about consumer financial products or services; 

15 (2) consumers are protected from abuse, unfair16 ness, deception, and discrimination; 

17 (3) markets for consumer financial products or 

18 services operate fairly and efficiently with ample 

19 room for sustainable growth and innovation; and 

20 (4) traditionally underserved consumers and 

21 communities have access to financial services. 

22 SEC. 122. AUTHORITIES. 

23 (a) IN GENERAL.—The Agency is authorized to exer24 cise its authorities granted in this title, in the enumerated 

25 consumer laws, and transferred under subtitles F and H, 


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1 to administer, enforce, and otherwise implement the provi2 sions of this title, the authorities transferred in subtitles 

3 F and H, and the enumerated consumer laws. 

4 (b) RULEMAKING, ORDERS, AND GUIDANCE.— 

5 (1) IN GENERAL.—The Agency may prescribe 

6 rules and issue orders and guidance as may be nec7 essary or appropriate to enable it to administer and 

8 carry out the purposes and objectives of this title, 

9 the authorities transferred under subtitles F and H, 

10 and the enumerated consumer laws, and to prevent 

11 evasions thereof. 

12 (2) STANDARDS FOR RULEMAKING.—In pre13 scribing a rule under this title or pursuant to the 

14 authorities transferred under subtitles F and H or 

15 the enumerated consumer laws, the Agency shall— 

16 (A) consider the potential benefits and 

17 costs to consumers and covered persons, includ18 ing the potential reduction of consumers’ access 

19 to consumer financial products or services, re20 sulting from such rule; and 

21 (B) consult with the Federal banking agen22 cies, or other Federal agencies, as appropriate, 

23 regarding the consistency of a proposed rule 

24 with prudential, market, or systemic objectives 

25 administered by such agencies. 


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1 (3) EXEMPTIONS.— 

2 (A) IN GENERAL.—The Agency, by rule or 

3 order, may conditionally or unconditionally ex4 empt any covered person or any consumer fi5 nancial product or service or any class of cov6 ered persons or consumer financial products or 

7 services, from any provision of this title, any 

8 enumerated consumer law, or from any rule 

9 thereunder, as the Agency deems necessary or 

10 appropriate to carry out the purposes and ob11 jectives of this title taking into consideration 

12 the factors in subparagraph (B). 

13 (B) FACTORS.—In issuing an exemption 

14 by rule or order as permitted in subparagraph 

15 (A), the Agency shall as appropriate take into 

16 consideration the following— 

17 (i) total assets of the covered person; 

18 (ii) the volume of transactions involv19 ing consumer financial products or services 

20 in which the covered person engages; 

21 (iii) the extent to which the covered 

22 person engages in 1 or more financial ac23 tivities; and 

24 (iv) existing laws or regulations which 

25 are applicable to the consumer financial 


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1 product or service and the extent to which 

2 such laws or regulations provide consumers 

3 with adequate protections. 

4 (c) EXAMINATIONS AND REPORTS.— 

5 (1) IN GENERAL.—The Agency may on a peri6 odic basis examine, or require reports from, a cov7 ered person for purposes of ensuring compliance 

8 with the requirements of this title, the enumerated 

9 consumer laws, and any regulations prescribed by 

10 the Agency under this title or pursuant to the au11 thorities transferred under subtitles F and H, and 

12 enforcing compliance with such requirements. 

13 (2) CONTENT OF REPORTS.—The reports au14 thorized in paragraph (1) may include such informa15 tion as necessary to keep the Agency informed as 

16 to— 

17 (A) the compliance systems or procedures 

18 of the covered person or any affiliate thereof, 

19 with applicable provisions of this title or any 

20 other law that the Agency has jurisdiction to 

21 enforce; and 

22 (B) matters related to the provision of con23 sumer financial products or services including 

24 the servicing or maintenance of accounts or ex25 tensions of credit. 


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1 (3) USE OF EXISTING REPORTS.—In general, 

2 the Agency shall, to the fullest extent possible, use— 

3 (A) reports that a covered person, or any 

4 affiliate thereof, has provided or been required 

5 to provide to a Federal or State agency; and 

6 (B) information that has been reported 

7 publicly. 

8 (4) REPORTS FROM NONDEPOSITORY COVERED

9 PERSONS.—The Agency may require reports regard10 ing financial condition from covered persons which 

11 are not subject to the jurisdiction of a Federal bank12 ing agency or a comparable State regulator for the 

13 purpose of assessing the ability of such person to 

14 perform its obligations to consumers. 

15 (5) ACCESS BY THE AGENCY TO REPORTS OF

16 OTHER REGULATORS.— 

17 (A) EXAMINATION AND FINANCIAL CONDI18 TION REPORTS.—Upon providing reasonable as19 surances of confidentiality, the Agency shall 

20 have access to any report of examination or fi21 nancial condition made by a Federal banking 

22 agency or other Federal agency having super23 vision of a covered person, and to all revisions 

24 made to any such report. 


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1 (B) PROVISION OF OTHER REPORTS TO

2 AGENCY.—In addition to the reports described 

3 in paragraph (a), a Federal banking agency 

4 may, in its discretion, furnish to the Agency 

5 any other report or other confidential super6 visory information concerning any insured de7 pository institution, any credit union, or other 

8 entity examined by such agency under authority 

9 of any Federal law. 

10 (6) ACCESS BY OTHER REGULATORS TO RE11 PORTS OF THE AGENCY.—Upon providing reasonable 

12 assurances of confidentiality, a Federal banking 

13 agency, a State regulator, or any other Federal 

14 agency having supervision of a covered person shall 

15 have access to any report of examination made by 

16 the Agency with respect to the covered person, and 

17 to all revisions made to any such report. 

18 (7) PRESERVATION OF AUTHORITY.—No provi19 sion in paragraph (3) shall be construed as pre20 venting the Agency from conducting an examination 

21 authorized by this title or under the authorities 

22 transferred under subtitles F and H or pursuant to 

23 any enumerated consumer law. 

24 (d) EXCLUSIVE RULEMAKING AND EXAMINATION

25 AUTHORITY.—Notwithstanding any other provision of 


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1 Federal law other than subsection (f), to the extent that 

2 a Federal law authorizes the Agency and another Federal 

3 agency to prescribe regulations, issue guidance, conduct 

4 examinations, or require reports under that law for pur5 poses of assuring compliance with this title, any enumer6 ated consumer law, the laws for which authorities were 

7 transferred under subtitles F and H, and any regulations 

8 prescribed under this title or pursuant to any such author9 ity, the Agency shall have the exclusive authority to pre10 scribe regulations, issue guidance, conduct examinations, 

11 require reports, or issue exemptions with regard to any 

12 person subject to that law. 

13 (e) PRIMARY ENFORCEMENT AUTHORITY.— 

14 (1) THE AGENCY TO HAVE PRIMARY ENFORCE15 MENT AUTHORITY.—To the extent that a Federal 

16 law authorizes the Agency and another Federal 

17 agency to enforce that law, the Agency shall have 

18 primary authority to enforce that Federal law with 

19 respect to any person in accordance with this sub20 section. 

21 (2) REFERRAL.—Any Federal agency author22 ized to enforce a Federal law described in paragraph 

23 (1) may recommend in writing to the Agency that 

24 the Agency initiate an enforcement proceeding as 

25 the Agency is authorized by that Federal law or by 


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1 this title. The recommendation shall be accompanied 

2 by a written explanation of the concerns giving rise 

3 to the recommendation. 

4 (3) BACKSTOP ENFORCEMENT AUTHORITY OF

5 OTHER FEDERAL AGENCY.—If the Agency does not, 

6 before the end of the 120-day period beginning on 

7 the date on which the Agency receives a rec8 ommendation under paragraph (2), initiate an en9 forcement proceeding, the other agency may initiate 

10 an enforcement proceeding as permitted by that 

11 Federal law. 

12 (f) EXCEPTIONS.— 

13 (1) DEPARTMENT OF JUSTICE.—Nothing in 

14 this title shall affect the authorities of the Depart15 ment of Justice. 

16 (2) PERSONS REGULATED BY THE SECURITIES

17 AND EXCHANGE COMMISSION.— 

18 (A) IN GENERAL.—No provision of this 

19 title shall be construed as altering, amending, 

20 or affecting the authority of the Securities and 

21 Exchange Commission to adopt rules, initiate 

22 enforcement proceedings, or take any other ac23 tion with respect to a person regulated by the 

24 Securities and Exchange Commission. The 

25 Agency shall have no authority to exercise any 


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•HR 3126 IH

1 power to enforce this title with respect to a per2 son regulated by the Securities and Exchange 

3 Commission. 

4 (B) CONSULTATION AND COORDINA5 TION.—Notwithstanding subparagraph (A), the 

6 Securities and Exchange Commission shall con7 sult and coordinate with the Agency with re8 spect to any rule (including any advance notice 

9 of proposed rulemaking) regarding an invest10 ment product or service that is the same type 

11 of product as, or that competes directly with, a 

12 consumer financial product or service that is 

13 subject to the jurisdiction of the Agency under 

14 this title or under any other law. 

15 (3) PERSONS REGULATED BY THE COMMODITY

16 FUTURES TRADING COMMISSION.— 

17 (A) IN GENERAL.—No provision of this 

18 title shall be construed as altering, amending, 

19 or affecting the authority of the Commodity 

20 Futures Trading Commission to adopt rules, 

21 initiate enforcement proceedings, or take any 

22 other action with respect to a person regulated 

23 by the Commodity Futures Trading Commis24 sion. The Agency shall have no authority to ex25 ercise any power to enforce this title with reVerDate Nov 24 2008 22:09 Jul 09, 2009 Jkt 079200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\H3126.IH H3126

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1 spect to a person regulated by the Commodity 

2 Futures Trading Commission. 

3 (B) CONSULTATION AND COORDINA4 TION.—Notwithstanding subparagraph (A), the 

5 Commodity Futures Trading Commission shall 

6 consult and coordinate with the Agency with re7 spect to any rule (including any advance notice 

8 of proposed rulemaking) regarding a product or 

9 service that is the same type of product as, or 

10 that competes directly with, a consumer finan11 cial product or service that is subject to the ju12 risdiction of the Agency under this title or 

13 under any other law. 

14 (g) NO AUTHORITY TO IMPOSE USURY LIMIT.—No 

15 provision of this title shall be construed as conferring au16 thority on the Agency to establish a usury limit applicable 

17 to an extension of credit offered or made by a covered per18 son to a consumer, unless explicitly authorized by law. 

19 SEC. 123. COLLECTION OF INFORMATION; CONFIDEN20 TIALITY RULES. 

21 (a) COLLECTION OF INFORMATION.— 

22 (1) IN GENERAL.—In conducting research on 

23 the provision of consumer financial products or serv24 ices, the Agency shall have the power to gather in25 formation from time to time regarding the organizaVerDate Nov 24 2008 22:09 Jul 09, 2009 Jkt 079200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\H3126.IH H3126

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1 tion, business conduct, and practices of covered per2 sons. 

3 (2) SPECIFIC AUTHORITY.—In order to gather 

4 such information, the Agency shall have the power— 

5 (A) to gather and compile information; 

6 (B) to require persons to file with the 

7 Agency, in such form and within such reason8 able period of time as the Agency may pre9 scribe, by regulation or order, annual or special 

10 reports, or answers in writing to specific ques11 tions, furnishing information the Agency may 

12 require; and 

13 (C) to make public such information ob14 tained by it under this section as is in the pub15 lic interest in reports or otherwise in the man16 ner best suited for public information and use. 

17 (b) CONFIDENTIALITY RULES.—The Agency shall 

18 prescribe regulations regarding the confidential treatment 

19 of information obtained from persons in connection with 

20 the exercise of its authorities under this title and the enu21 merated consumer laws and the authorities transferred 

22 under subtitles F and H. 

23 SEC. 124. MONITORING; ASSESSMENTS OF SIGNIFICANT 

24 RULES; REPORTS. 

25 (a) MONITORING.— 


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1 (1) IN GENERAL.—The Agency shall monitor 

2 for risks to consumers in the provision of consumer 

3 financial products or services, including develop4 ments in markets for such products or services. 

5 (2) MEANS OF MONITORING.—Such monitoring 

6 may be conducted by examinations of covered per7 sons, analysis of reports obtained from covered per8 sons, assessment of consumer complaints, surveys 

9 and interviews of covered persons and consumers, 

10 and review of available databases. 

11 (3) CONSIDERATIONS.—In allocating its re12 sources to perform the monitoring required by this 

13 section, the Agency may consider, among other fac14 tors— 

15 (A) likely risks and costs to consumers as16 sociated with buying or using a type of con17 sumer financial product or service; 

18 (B) consumers’ understanding of the risks 

19 of a type of consumer financial product or serv20 ice; 

21 (C) the state of the law that applies to the 

22 provision of a consumer financial product or 

23 service, including the extent to which the law is 

24 likely to adequately protect consumers; 


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1 (D) rates of growth in the provision of a 

2 consumer financial product or service; 

3 (E) extent, if any, to which the risks of a 

4 consumer financial product or service may dis5 proportionately affect traditionally underserved 

6 consumers, if any; or 

7 (F) types, number, and other pertinent 

8 characteristics of covered persons that provide 

9 the product or service. 

10 (4) REPORTS.—The Agency shall publish at 

11 least 1 report of significant findings of its moni12 toring required by paragraph (1) in each calendar 

13 year, beginning in the calendar year that is 1 year 

14 after the designated transfer date. 

15 (b) ASSESSMENT OF SIGNIFICANT RULES.— 

16 (1) IN GENERAL.—The Agency shall conduct an 

17 assessment of each significant regulation prescribed 

18 or order issued by the Agency under this title, under 

19 the authorities transferred under subtitles F and H 

20 or pursuant to any enumerated consumer law that 

21 addresses, among other relevant factors, the effec22 tiveness of the regulation in meeting the purposes 

23 and objectives of this Act and the specific goals stat24 ed by the Agency. 


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1 (2) BASIS FOR ASSESSMENT.—The assessment 

2 shall reflect available evidence and any data that the 

3 Agency reasonably may collect. 

4 (3) REPORTS.—The Agency shall publish a re5 port of its assessment not later than 3 years after 

6 the effective date of the regulation or order, unless 

7 the Agency determines that 3 years is not sufficient 

8 time to study or review the impact of the regulation, 

9 but in no event shall the Agency publish a report 

10 thereof more than 5 years after the effective date of 

11 the regulation or order. 

12 (4) PUBLIC COMMENTED REQUIRED.—Before 

13 publishing a report of its assessment, the Agency 

14 shall invite public comment on recommendations for 

15 modifying, expanding, or eliminating the newly 

16 adopted significant regulation or order. 

17 (c) INFORMATION GATHERING.—In conducting any 

18 monitoring or assessment required by this section, the 

19 Agency may gather information through a variety of meth20 ods, including by conducting surveys or interviews of con21 sumers. 

22 SEC. 125. AUTHORITY TO RESTRICT MANDATORY PRE-DIS23 PUTE ARBITRATION. 

24 The Agency, by regulation, may prohibit or impose 

25 conditions or limitations on the use of agreements between 


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1 a covered person and a consumer that require the con2 sumer to arbitrate any future dispute between the parties 

3 arising under this title or any enumerated consumer law 

4 if the Agency finds that such prohibition, imposition of 

5 conditions, or limitations are in the public interest and for 

6 the protection of consumers. 

7 SEC. 126. EFFECTIVE DATE. 

8 This subtitle shall take effect on the designated 

9 transfer date. 

10 Subtitle C—Specific Authorities 

11 SEC. 131. PROHIBITING UNFAIR, DECEPTIVE, OR ABUSIVE 

12 ACTS OR PRACTICES. 

13 (a) IN GENERAL.—The Agency may take any action 

14 authorized under subtitle E to prevent a person from com15 mitting or engaging in an unfair, deceptive, or abusive act 

16 or practice under Federal law in connection with any 

17 transaction with a consumer for a consumer financial 

18 product or service. 

19 (b) RULEMAKING REQUIRED.— 

20 (1) IN GENERAL.—The Agency may prescribe 

21 regulations identifying as unlawful unfair, deceptive, 

22 or abusive acts or practices in connection with any 

23 transaction with a consumer for a consumer finan24 cial product or service. 


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1 (2) INCLUDES PREVENTION MEASURES.—Regu2 lations prescribed under this section may include re3 quirements for the purpose of preventing such acts 

4 or practices. 

5 (c) UNFAIRNESS.— 

6 (1) IN GENERAL.—The Agency shall have no 

7 authority under this section to declare an act or 

8 practice in connection with a transaction with a con9 sumer for a consumer financial product or service to 

10 be unlawful on the grounds that such act or practice 

11 is unfair unless the Agency has a reasonable basis 

12 to conclude that the act or practice causes or is like13 ly to cause substantial injury to consumers which is 

14 not reasonably avoidable by consumers and such 

15 substantial injury is not outweighed by counter16 vailing benefits to consumers or to competition. 

17 (2) ESTABLISHED PUBLIC POLICY AS FAC18 TOR.—In determining whether an act or practice is 

19 unfair, the Agency may consider established public 

20 policies as evidence to be considered with all other 

21 evidence. 

22 (d) CONSULTATION.—In prescribing a regulation 

23 under this section, the Agency shall consult with the Fed24 eral banking agencies, or other Federal agencies, as appro25 priate, concerning the consistency of the proposed regulaVerDate Nov 24 2008 22:09 Jul 09, 2009 Jkt 079200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\H3126.IH H3126

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1 tion with prudential, market, or systemic objectives admin2 istered by such agencies. 

3 SEC. 132. DISCLOSURES AND COMMUNICATIONS. 

4 (a) IN GENERAL.—The Agency may prescribe regula5 tions to ensure the appropriate and effective disclosure or 

6 communication to consumers of the costs, benefits, and 

7 risks associated with any consumer financial product or 

8 service. 

9 (b) REASONABLE DISCLOSURES AND COMMUNICA10 TIONS.—Subject to regulations prescribed by the Agency, 

11 a covered person shall, with respect to disclosures or com12 munications regarding any consumer financial product or 

13 service, make or provide to a consumer disclosures and 

14 communications that— 

15 (1) balance communication of the benefits of 

16 the product or service with communication of signifi17 cant risks and costs; 

18 (2) prominently disclose the significant risks 

19 and costs, in reasonable proportion to the disclosure 

20 of the benefits; 

21 (3) communicate significant risks and costs in 

22 a clear, concise, and timely manner designed to pro23 mote a consumer’s awareness and understanding of 

24 the risks and costs, as well as to use the information 

25 to make financial decisions; and 


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1 (4) comply with standards prescribed by the 

2 Agency. 

3 (c) BASIS FOR RULEMAKING.—In prescribing regula4 tions under this section, the Agency shall consider avail5 able evidence about consumer awareness, understanding 

6 of, and responses to disclosures or communications about 

7 the risks, costs, and benefits of consumer financial prod8 ucts or services. 

9 (d) COMBINED MORTGAGE LOAN DISCLOSURE.— 

10 Within 1 year after the designated transfer date, the 

11 Agency shall propose for public comment regulations and 

12 model disclosures that combine the disclosures required 

13 under the Truth in Lending Act and the Real Estate Set14 tlement Procedures Act into a single, integrated disclosure 

15 for mortgage loan transactions covered by those laws, un16 less the Agency determines that any proposal issued by 

17 the Board of Governors and the Department of Housing 

18 and Urban Development carries out the same purpose. 

19 SEC. 133. SALES PRACTICES. 

20 The Agency may prescribe regulations and issue or21 ders and guidance regarding the manner, settings, and cir22 cumstances for the provision of any consumer financial 

23 products or services to ensure that the risks, costs, and 

24 benefits of the products or services, both initially and over 


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1 the term of the products or services, are fully and accu2 rately represented to consumers. 

3 SEC. 134. PILOT DISCLOSURES. 

4 (a) PILOT DISCLOSURES.—The Agency shall estab5 lish standards and procedures for approval of pilot disclo6 sures to be provided or made available by a covered person 

7 to consumers in connection with the provision of a con8 sumer financial product or service. 

9 (b) STANDARDS.—The procedures shall provide that 

10 a pilot disclosure must be limited in time and scope and 

11 reasonably designed to contribute materially to the under12 standing of consumer awareness and understanding of, 

13 and responses to, disclosures or communications about the 

14 risks, costs, and benefits of consumer financial products 

15 or services. 

16 (c) TRANSPARENCY.—The procedures shall provide 

17 for public disclosure of pilots, but the Agency may limit 

18 disclosure to the extent necessary to encourage covered 

19 persons to conduct effective pilots. 

20 SEC. 135. ADOPTING OPERATIONAL STANDARDS TO DETER 

21 UNFAIR, DECEPTIVE, OR ABUSIVE PRAC22 TICES. 

23 (a) AUTHORITY TO PRESCRIBE STANDARDS.—The 

24 States are encouraged to prescribe standards applicable 

25 to covered persons who are not insured depository instituVerDate Nov 24 2008 22:09 Jul 09, 2009 Jkt 079200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\H3126.IH H3126

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1 tions or credit unions to deter and detect unfair, deceptive, 

2 abusive, fraudulent, or illegal transactions in the provision 

3 of consumer financial products or services, including 

4 standards for— 

5 (1) background checks for principals, officers, 

6 directors, or key personnel of the covered person; 

7 (2) registration, licensing, or certification; 

8 (3) bond or other appropriate financial require9 ments to provide reasonable assurance of the ability 

10 of the covered person to perform its obligations to 

11 consumers; 

12 (4) creating and maintaining records of trans13 actions or accounts; or 

14 (5) procedures and operations of the covered 

15 person relating to the provision of, or maintenance 

16 of accounts for, consumer financial products or serv17 ices. 

18 (b) AGENCY AUTHORITY TO PRESCRIBE STAND19 ARDS.—The Agency may prescribe regulations estab20 lishing minimum standards under this section for any 

21 class of covered persons other than covered persons which 

22 are subject to the jurisdiction of a Federal banking agency 

23 or a comparable State regulator. The Agency may enforce 

24 under subtitle E compliance with standards adopted by 


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1 the Agency or a State pursuant to this section for covered 

2 persons operating in that State. 

3 (c) CONSULTATION.—In prescribing minimum stand4 ards under this section, the Agency shall consult with the 

5 State authorities, the Federal banking agencies, or other 

6 Federal agencies, as appropriate, concerning the consist7 ency of the proposed regulation with prudential, market, 

8 or systemic objectives administered by such State authori9 ties or such agencies. 

10 SEC. 136. STANDARD CONSUMER FINANCIAL PRODUCTS OR 

11 SERVICES. 

12 (a) CHARACTERISTICS OF STANDARD CONSUMER FI13 NANCIAL PRODUCTS OR SERVICES.—Subject to regula14 tions prescribed by the Agency under this section, a stand15 ard consumer financial product or service is a consumer 

16 financial product or service that— 

17 (1) is or can be readily offered by covered per18 sons that offer or seek to offer alternative consumer 

19 financial products or services; 

20 (2) is transparent to consumers in its terms 

21 and features; 

22 (3) poses lower risks to consumers; 

23 (4) facilitates comparisons with and assessment 

24 of the benefits and costs of alternative consumer fi25 nancial products or services; and 


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1 (5) contains the features or terms defined by 

2 the Agency for the product or service. 

3 (b) OFFERING STANDARD CONSUMER FINANCIAL

4 PRODUCTS OR SERVICES.— 

5 (1) IN GENERAL.—The Agency may prescribe 

6 regulations or issue guidance regarding the offer of 

7 a standard consumer financial product or service at 

8 or before the time an alternative consumer financial 

9 product or service is offered to a consumer, includ10 ing— 

11 (A) warnings to consumers about the 

12 heightened risks of alternative consumer finan13 cial products or services; or 

14 (B) providing the consumer with a mean15 ingful opportunity to decline to obtain the 

16 standard consumer financial product or service. 

17 (2) RULEMAKING REGARDING THE OFFERING

18 OF STANDARD CONSUMER FINANCIAL PRODUCTS OR

19 SERVICES.—The Agency may not require a covered 

20 person to offer a standard consumer financial prod21 uct or service at or before the time an alternative 

22 consumer financial product or service is offered to a 

23 consumer unless the Agency prescribes regulations, 

24 after notice and comment, regarding the features or 

25 terms of the product or service. 


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1 (3) GENERAL APPLICABILITY.—Regulations 

2 prescribed by the Agency under this section shall 

3 apply only to any covered person who— 

4 (A) voluntarily offers or provides a con5 sumer financial product or service that is of the 

6 same type, or in the same class, as a standard 

7 consumer financial product or service; or 

8 (B) maintains an account or has a rela9 tionship with a consumer involving a product or 

10 service that is substantively similar to the 

11 standard product or service. 

12 SEC. 137. DUTIES. 

13 (a) IN GENERAL.— 

14 (1) REGULATIONS ENSURING FAIR DEALING

15 WITH CONSUMERS.—The Agency shall prescribe reg16 ulations imposing duties on a covered person, or an 

17 employee of a covered person, or an agent or inde18 pendent contractor for a covered person, who deals 

19 or communicates directly with consumers in the pro20 vision of a consumer financial product or service, as 

21 the Agency deems appropriate or necessary to en22 sure fair dealing with consumers. 

23 (2) CONSIDERATIONS FOR DUTIES.—In pre24 scribing such regulations, the Agency shall consider 

25 whether— 


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1 (A) the covered person, employee, agent, or 

2 independent contractor represents implicitly or 

3 explicitly that the person, employee, agent, or 

4 contractor is acting in the interest of the con5 sumer with respect to any aspect of the trans6 action; 

7 (B) the covered person, employee, agent, 

8 or independent contractor provides the con9 sumer with advice with respect to any aspect of 

10 the transaction; 

11 (C) the consumer’s reliance on any advice 

12 from the covered person, employee, agent, or 

13 independent contractor would be reasonable and 

14 justifiable under the circumstances; 

15 (D) the benefits to consumers of imposing 

16 a particular duty would outweigh the costs; and 

17 (E) any other factors as the Agency con18 siders appropriate. 

19 (3) DUTIES RELATING TO COMPENSATION

20 PRACTICES.—The Agency may prescribe regulations 

21 establishing duties regarding compensation practices 

22 applicable to a covered person, employee, agent, or 

23 independent contractor who deals or communicates 

24 directly with a consumer in the provision of a con25 sumer financial product or service for the purpose of 


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1 promoting fair dealing with consumers. The Agency 

2 shall not prescribe a limit on the total dollar amount 

3 of compensation paid to any person. 

4 (b) ADMINISTRATIVE PROCEEDINGS.— 

5 (1) IN GENERAL.—Any regulation prescribed by 

6 the Agency under this section shall be enforceable 

7 only by the Agency through an adjudication pro8 ceeding under subtitle E or by a State regulator 

9 through an appropriate administrative proceeding as 

10 permitted under State law. 

11 (2) EXCLUSIVITY OF REMEDY.—No action may 

12 be commenced in any court to enforce any require13 ment of a regulation prescribed under this section, 

14 and no court may exercise supplemental jurisdiction 

15 over a claim asserted under a regulation prescribed 

16 under this section based on allegations or evidence 

17 of conduct that otherwise may be subject to such 

18 regulation. 

19 (3) RULE OF CONSTRUCTION.—The Agency, 

20 the Attorney General, and any State attorney gen21 eral or State regulator shall not be precluded from 

22 enforcing any other Federal or State law against a 

23 person with respect to conduct that may be subject 

24 to a regulation prescribed by the Agency under this 

25 section. 


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1 (c) EXCLUSIONS.—This section shall not be con2 strued as authorizing the Agency to prescribe regulations 

3 applicable to— 

4 (1) an attorney licensed to practice law and in 

5 compliance with the applicable rules and standards 

6 of professional conduct, but only to the extent that 

7 the consumer financial product or service provided is 

8 within the attorney-client relationship with the con9 sumer; or 

10 (2) any trustee, custodian, or other person that 

11 holds a fiduciary duty in connection with a trust, in12 cluding a fiduciary duty to a grantor or beneficiary 

13 of a trust, that is subject to and in compliance with 

14 the applicable law relating to such trust. 

15 SEC. 138. CONSUMER RIGHTS TO ACCESS INFORMATION. 

16 (a) IN GENERAL.—Subject to regulations prescribed 

17 by the Agency, a covered person shall make available to 

18 a consumer, in an electronic form usable by the consumer, 

19 information in the control or possession of the covered per20 son concerning the consumer financial product or service 

21 that the consumer obtained from such covered person in22 cluding information relating to any transaction, series of 

23 transactions, or to the account including costs, charges 

24 and usage data. 


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1 (b) EXCEPTIONS.—A covered person shall not be re2 quired by this section to make available to the consumer— 

3 (1) any confidential commercial information, in4 cluding an algorithm used to derive credit scores or 

5 other risk scores or predictors; 

6 (2) any information collected by the covered 

7 person for the purpose of preventing fraud or money 

8 laundering, or detecting, or making any report re9 garding other unlawful or potentially unlawful con10 duct; 

11 (3) any information required to be kept con12 fidential by any other law; or 

13 (4) any information that the covered person 

14 cannot retrieve in the ordinary course of its business 

15 with respect to that information. 

16 (c) NO DUTY TO MAINTAIN RECORDS.—No provision 

17 of this section shall be construed as imposing any duty 

18 on a covered person to maintain or keep any information 

19 about a consumer. 

20 (d) STANDARDIZED FORMATS FOR DATA.—The 

21 Agency, by regulation, shall prescribe standards applicable 

22 to covered persons to promote the development and use 

23 of standardized formats for information, including 

24 through the use of machine readable files, to be made 

25 available to consumers under this section. 


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1 (e) CONSULTATION AND COORDINATION.—The Agen2 cy shall, when prescribing any regulation under this sec3 tion, consult and coordinate with the Federal banking 

4 agencies and the Federal Trade Commission to ensure 

5 that the regulations— 

6 (1) impose substantively similar requirements 

7 on covered persons; 

8 (2) take into account conditions under which 

9 covered persons do business both in the United 

10 States and in other countries; and 

11 (3) do not require or promote the use of any 

12 particular technology in order to develop systems for 

13 compliance. 

14 SEC. 139. PROHIBITED ACTS. 

15 It shall be unlawful for any person to— 

16 (1) advertise, market, offer, sell, enforce, or at17 tempt to enforce, any term, agreement, change in 

18 terms, fee or charge in connection with a consumer 

19 financial product or service that is not in conformity 

20 with this title or applicable regulation prescribed or 

21 order issued by the Agency; 

22 (2) fail or refuse to permit access to or copying 

23 of records, or fail or refuse to establish or maintain 

24 records, or fail or refuse to make reports or provide 

25 information to the Agency, as required by this title, 


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1 an enumerated consumer law, or pursuant to the au2 thorities transferred by subtitles F and H, or any 

3 regulation prescribed or order issued by the Agency 

4 this title or pursuant to any such authority; or 

5 (3) knowingly or recklessly provide substantial 

6 assistance to another person in violation of the pro7 visions of section 131, or any regulation prescribed 

8 or order issued under such section, and any such 

9 person shall be deemed to be in violation of that sec10 tion to the same extent as the person to whom such 

11 assistance is provided. 

12 SEC. 140. EFFECTIVE DATE. 

13 This subtitle shall take effect on the designated 

14 transfer date. 

15 Subtitle D—Preservation of State 

16 Law 

17 SEC. 141. RELATION TO STATE LAW. 

18 (a) IN GENERAL.— 

19 (1) RULE OF CONSTRUCTION.—This title shall 

20 not be construed as annulling, altering, or affecting, 

21 or exempting any person subject to the provisions of 

22 this title from complying with, the laws, regulations, 

23 orders, or interpretations, in effect in any State, ex24 cept to the extent that such statute, regulation, 

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1 visions of this title and then only to the extent of the 

2 inconsistency. 

3 (2) GREATER PROTECTION UNDER STATE

4 LAW.—For the purposes of this subsection, a State 

5 statute, regulation, order, or interpretation is not in6 consistent with the provisions of this title if the pro7 tection such statute, regulation, order, or interpreta8 tion affords consumers is greater than the protection 

9 provided under this title, as determined by the Agen10 cy. A determination regarding whether a State stat11 ute, regulation, order, or interpretation is incon12 sistent with the provisions of this title may be made 

13 by regulation, order or guidance adopted by the 

14 Agency on its own motion or in response to a non15 frivolous petition initiated by any interested person. 

16 (b) RELATION TO OTHER PROVISIONS OF ENUMER17 ATED CONSUMER LAWS THAT RELATE TO STATE LAW.— 

18 No provision of this title, except as provided in section 

19 175, shall be construed as modifying, limiting, or super20 seding the operation of any provision of an enumerated 

21 consumer law that relates to the application of State law 

22 with respect to such Federal law. 

23 SEC. 142. PRESERVATION OF ENFORCEMENT POWERS OF 

24 STATES. 

25 (a) IN GENERAL.— 


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1 (1) ACTION BY STATE.—Any State attorney 

2 general may bring a civil action in the name of such 

3 State, as parens patriae on behalf of natural persons 

4 residing in such State, in any district court of the 

5 United States or State court having jurisdiction of 

6 the defendant, to secure monetary or equitable relief 

7 for violation of any provisions of this title or regula8 tions issued thereunder. 

9 (2) RULE OF CONSTRUCTION.—No provision of 

10 this title shall be construed as modifying, limiting, 

11 or superseding the operation of any provision of an 

12 enumerated consumer law that relates to the author13 ity of a State attorney general or State regulator to 

14 enforce such Federal law. 

15 (b) CONSULTATION REQUIRED.— 

16 (1) NOTICE.— 

17 (A) IN GENERAL.—Before initiating any 

18 action in a court or other administrative or reg19 ulatory proceeding against any covered person 

20 to enforce any provision of this title, including 

21 any regulation prescribed by the Agency under 

22 this title, a State attorney general or State reg23 ulator shall timely provide a copy of the com24 plete complaint to be filed and written notice 


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1 describing such action or proceeding to the 

2 Agency, or the Agency’s designee. 

3 (B) EMERGENCY ACTION.—If prior notice 

4 is not practicable, the State attorney general or 

5 State regulator shall provide a copy of the com6 plete complaint and the notice to the Agency 

7 immediately upon instituting the action or pro8 ceeding. 

9 (C) CONTENTS OF NOTICE.—The notifica10 tion required under this section shall, at a min11 imum, describe— 

12 (i) the identity of the parties; 

13 (ii) the alleged facts underlying the 

14 proceeding; and 

15 (iii) whether there may be a need to 

16 coordinate the prosecution of the pro17 ceeding so as not to interfere with any ac18 tion, including any rulemaking, undertaken 

19 by the Agency or another Federal agency. 

20 (2) AGENCY RESPONSE.—In any action de21 scribed in paragraph (1), the Agency may— 

22 (A) intervene in the action as a party; 

23 (B) upon intervening— 

24 (i) remove the action to the appro25 priate United States district court, if the 


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1 action was not originally brought there; 

2 and 

3 (ii) be heard on all matters arising in 

4 the action; and 

5 (C) appeal any order or judgment to the 

6 same extent as any other party in the pro7 ceeding may. 

8 (c) REGULATIONS.—The Agency shall prescribe regu9 lations to implement the requirements of this section and, 

10 from time to time, provide guidance in order to further 

11 coordinate actions with the State attorneys general and 

12 other regulators. 

13 (d) PRESERVATION OF STATE CLAIMS.—Nothing in 

14 this section shall be construed as limiting the authority 

15 of a State attorney general or State regulator to bring an 

16 action or other regulatory proceeding arising solely under 

17 the law of that State. 

18 SEC. 143. STATE LAW PREEMPTION STANDARDS FOR NA19 TIONAL BANKS AND SUBSIDIARIES CLARI20 FIED. 

21 (a) IN GENERAL.—Chapter one of title LXII of the 

22 Revised Statutes of the United States (12 U.S.C. 21 et 

23 seq.) is amended by inserting after section 5136B the fol24 lowing new section: 


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1 ‘‘SEC. 5136C. STATE LAW PREEMPTION STANDARDS FOR NA2 TIONAL BANKS AND SUBSIDIARIES CLARI3 FIED. 

4 ‘‘(a) DEFINITIONS.—For purposes of this section, the 

5 following definitions shall apply: 

6 ‘‘(1) NATIONAL BANK.—The term ‘national 

7 bank’ includes— 

8 ‘‘(A) any bank organized under the laws of 

9 the United States; 

10 ‘‘(B) any affiliate of a national bank; 

11 ‘‘(C) any subsidiary of a national bank; 

12 and 

13 ‘‘(D) any Federal branch established in ac14 cordance with the International Banking Act of 

15 1978. 

16 ‘‘(2) OTHER DEFINITIONS.—The terms ‘affil17 iate’, ‘subsidiary’, ‘includes’, and ‘including’ have the 

18 same meaning as in section 3 of the Federal Deposit 

19 Insurance Act. 

20 ‘‘(3) STATE CONSUMER LAW.—The term ‘State 

21 consumer law’ means any law of a State that— 

22 ‘‘(A) accords rights to or protects the 

23 rights of its citizens in financial transactions 

24 concerning negotiation, sales, solicitation, dis25 closure, terms and conditions, advice, and rem26 edies; or 


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1 ‘‘(B) prevents counterparties, successors, 

2 and assigns of financial contracts from engag3 ing in unfair or deceptive acts and practices. 

4 ‘‘(b) STATE CONSUMER LAWS OF GENERAL APPLI5 CATION.—Notwithstanding any other provision of Federal 

6 law and except as provided in subsection (d), any con7 sumer protection provision in State consumer laws of gen8 eral application, including any law relating to unfair or 

9 deceptive acts or practices, any consumer fraud law and 

10 repossession, foreclosure, and collection law, shall apply to 

11 any national bank. 

12 ‘‘(c) STATE BANKING LAWS ENACTED PURSUANT TO

13 FEDERAL LAW.—Notwithstanding any other provision of 

14 Federal law and except as provided in subsection (d), any 

15 State consumer law that— 

16 ‘‘(1) is applicable to State banks; and 

17 ‘‘(2) was enacted pursuant to or in accordance 

18 with, and is not inconsistent with, an Act of Con19 gress, including the Gramm-Leach-Bliley Act, the 

20 Consumer Credit Protection Act, and the Real Es21 tate Settlement Procedures Act, that explicitly or by 

22 implication, permits States to exceed or supplement 

23 the requirements of any comparable Federal law, 

24 shall apply to any national bank. 

25 ‘‘(d) EXCEPTIONS.— 


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1 ‘‘(1) IN GENERAL.—Subsections (b) and (c) 

2 shall not apply with respect to any State consumer 

3 law if— 

4 ‘‘(A) the State consumer law discriminates 

5 against national banks; or 

6 ‘‘(B) the State consumer law is incon7 sistent with provisions of Federal law other 

8 than this title, but only to the extent of the in9 consistency (as determined in accordance with 

10 the provision of the other Federal law). 

11 ‘‘(2) RULE FOR DETERMINING INCONSIST12 ENCY.—For purposes of paragraph (1)(B), a State 

13 consumer law is not inconsistent with Federal law if 

14 the protection the State consumer law affords con15 sumers is greater than the protection provided under 

16 Federal law as determined by the Agency. 

17 ‘‘(e) NO NEGATIVE IMPLICATIONS FOR APPLICA18 BILITY OF OTHER STATE LAWS.—No provision of this 

19 section shall be construed as altering or affecting the ap20 plicability, to national banks, of any State law which is 

21 not described in this section. 

22 ‘‘(f) EFFECT OF TRANSFER OF TRANSACTION.— 

23 State consumer law applicable to a transaction at the in24 ception of the transaction may not be preempted under 

25 Federal law solely because a national bank subsequently 


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1 acquires the asset or instrument that is the subject of the 

2 transaction. 

3 ‘‘(g) DENIAL OF PREEMPTION NOT A DEPRIVATION

4 OF A CIVIL RIGHT.—The preemption of any provision of 

5 the law of any State with respect to any national bank 

6 shall not be treated as a right, privilege, or immunity for 

7 purposes of section 1979 of the Revised Statutes of the 

8 United States (42 U.S.C. 1983).’’. 

9 (b) CLERICAL AMENDMENT.—The table of sections 

10 for chapter one of title LXII of the Revised Statutes of 

11 the United States is amended by inserting after the item 

12 relating to section 5136B the following new item: 

‘‘5136C. State law preemption standards for national banks and subsidiaries 

clarified.’’. 

13 SEC. 144. VISITORIAL STANDARDS. 

14 Section 5136C of the Revised Statutes of the United 

15 States (as added by section 143) is amended by adding 

16 at the end the following new subsections: 

17 ‘‘(h) VISITORIAL POWERS.— 

18 ‘‘(1) RULE OF CONSTRUCTION.—No provision 

19 of this title which relates to visitorial powers or oth20 erwise limits or restricts the supervisory, examina21 tion, or regulatory authority to which any national 

22 bank is subject shall be construed as limiting or re23 stricting the authority of any attorney general (or 

24 other chief law enforcement officer) of any State to 


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1 bring any action in any court of appropriate jurisdic2 tion— 

3 ‘‘(A) to require a national bank to produce 

4 records relative to the investigation of violations 

5 of State consumer law, or Federal consumer 

6 laws; 

7 ‘‘(B) to enforce any applicable Federal or 

8 State law, as authorized by such law; or 

9 ‘‘(C) on behalf of residents of such State, 

10 to enforce any applicable provision of any Fed11 eral or State law against a national bank, as 

12 authorized by such law, or to seek relief and re13 cover damages for such residents from any vio14 lation of any such law by any national bank. 

15 ‘‘(2) CONSULTATION.—The attorney general (or 

16 other chief law enforcement officer) of any State 

17 shall consult with the head of the agency responsible 

18 for chartering and regulating national banks before 

19 acting under paragraph (1). 

20 ‘‘(i) ENFORCEMENT ACTIONS.—The ability of the 

21 head of the agency responsible for chartering and regu22 lating national banks to bring an enforcement action 

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1 ties from enforcing rights granted under Federal or State 

2 law in the courts.’’. 

3 SEC. 145. CLARIFICATION OF LAW APPLICABLE TO NON4 DEPOSITORY INSTITUTION SUBSIDIARIES. 

5 Section 5136C of the Revised Statutes of the United 

6 States is amended by inserting after subsection (i) (as 

7 added by section 144) the following new subsection: 

8 ‘‘(j) CLARIFICATION OF LAW APPLICABLE TO NON9 DEPOSITORY INSTITUTION SUBSIDIARIES AND AFFILI10 ATES OF NATIONAL BANKS.— 

11 ‘‘(1) DEFINITIONS.—For purposes of this sec12 tion, the following definitions shall apply: 

13 ‘‘(A) DEPOSITORY INSTITUTION, SUB14 SIDIARY, AFFILIATE.—The terms ‘depository in15 stitution’, ‘subsidiary’, and ‘affiliate’ have the 

16 same meanings as in section 3 of the Federal 

17 Deposit Insurance Act. 

18 ‘‘(B) NONDEPOSITORY INSTITUTION.—The 

19 term ‘nondepository institution’ means any enti20 ty that is not a depository institution. 

21 ‘‘(2) IN GENERAL.—No provision of this title 

22 shall be construed as annulling, altering, or affecting 

23 the applicability of State law to any nondepository 

24 institution, subsidiary, other affiliate, or agent of a 

25 national bank.’’. 


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1 SEC. 146. STATE LAW PREEMPTION STANDARDS FOR FED2 ERAL SAVINGS ASSOCIATIONS AND SUBSIDI3 ARIES CLARIFIED. 

4 (a) IN GENERAL.—The Home Owners’ Loan Act (12 

5 U.S.C. 1461 et seq.) is amended by inserting after section 

6 5 the following new section: 

7 ‘‘SEC. 6. STATE LAW PREEMPTION STANDARDS FOR FED8 ERAL SAVINGS ASSOCIATIONS CLARIFIED. 

9 ‘‘(a) DEFINITION.—For purposes of this section— 

10 ‘‘(1) the terms ‘includes’ and ‘including’ have 

11 the same meaning as in section 3(t) of the Federal 

12 Deposit Insurance Act. 

13 ‘‘(2) the term ‘State consumer law’ means any 

14 law of a State that: 

15 ‘‘(A) accords rights to or protects the 

16 rights of its citizens in financial transactions 

17 concerning negotiation, sales, solicitation, dis18 closure, terms and conditions, advice, and rem19 edies; or 

20 ‘‘(B) prevents counterparties, successors, 

21 and assigns of financial contracts from engag22 ing in unfair or deceptive acts and practices. 

23 ‘‘(b) STATE CONSUMER LAWS OF GENERAL APPLI24 CATION.—Notwithstanding any other provision of Federal 

25 law and except as provided in subsection (c), any con26 sumer protection provision in State consumer laws of genVerDate Nov 24 2008 22:09 Jul 09, 2009 Jkt 079200 PO 00000 Frm 00069 Fmt 6652 Sfmt 6201 E:\BILLS\H3126.IH H3126

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1 eral application, including any law relating to unfair or 

2 deceptive acts or practices, any consumer fraud law and 

3 repossession, foreclosure, and collection law, shall apply to 

4 any Federal savings association. 

5 ‘‘(c) EXCEPTIONS.— 

6 ‘‘(1) IN GENERAL.—Subsection (b) shall not 

7 apply with respect to any State law if— 

8 ‘‘(A) the State law discriminates against 

9 Federal savings associations; or 

10 ‘‘(B) the State consumer law is incon11 sistent with provisions of Federal law other 

12 than this Act, but only to the extent of the in13 consistency (as determined in accordance with 

14 the provision of the other Federal law). 

15 ‘‘(2) RULE FOR DETERMINING INCONSIST16 ENCY.—For purposes of paragraph (1)(B), a State 

17 consumer law is not inconsistent with Federal law if 

18 the protection the State consumer law affords con19 sumers is greater than the protection provided under 

20 Federal law, as determined by the Agency. 

21 ‘‘(d) STATE BANKING OR THRIFT LAWS ENACTED

22 PURSUANT TO FEDERAL LAW.— 

23 ‘‘(1) IN GENERAL.—Notwithstanding any other 

24 provision of Federal law and except as provided in 

25 paragraph (2), any State law that— 


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1 ‘‘(A) is applicable to State savings associa2 tions (as defined in section 3 of the Federal De3 posit Insurance Act); and 

4 ‘‘(B) was enacted pursuant to or in accord5 ance with, and is not inconsistent with, an Act 

6 of Congress, including the Gramm-Leach-Bliley 

7 Act, the Consumer Credit Protection Act, and 

8 the Real Estate Settlement Procedures Act, 

9 that explicitly or by implication, permits States 

10 to exceed or supplement the requirements of 

11 any comparable Federal law, 

12 shall apply to any Federal savings association. 

13 ‘‘(2) EXCEPTIONS.—Paragraph (1) shall not 

14 apply with respect to any State law if— 

15 ‘‘(A) the State law discriminates against 

16 Federal savings associations; or 

17 ‘‘(B) the State consumer law is incon18 sistent with provisions of Federal law other 

19 than this Act, but only to the extent of the in20 consistency (as determined in accordance with 

21 the provision of the other Federal law). For this 

22 purpose, a State consumer law is not incon23 sistent with Federal law if the protection the 

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1 er than the protection provided under Federal 

2 law, as determined by the Agency. 

3 ‘‘(e) NO NEGATIVE IMPLICATIONS FOR APPLICA4 BILITY OF OTHER STATE LAWS.—No provision of this 

5 section shall be construed as altering or affecting the ap6 plicability, to Federal savings associations, of any State 

7 law which is not described in this section. 

8 ‘‘(f) EFFECT OF TRANSFER OF TRANSACTION.— 

9 State consumer law applicable to a transaction at the in10 ception of the transaction may not be preempted under 

11 Federal law solely because a Federal savings association 

12 subsequently acquires the asset or instrument that is the 

13 subject of the transaction. 

14 ‘‘(g) DENIAL OF PREEMPTION NOT A DEPRIVATION

15 OF A CIVIL RIGHT.—The preemption of any provision of 

16 the law of any State with respect to any Federal savings 

17 association shall not be treated as a right, privilege, or 

18 immunity for purposes of section 1979 of the Revised 

19 Statutes of the United States (42 U.S.C. 1983).’’. 

20 (b) CLERICAL AMENDMENT.—The table of sections 

21 for the Home Owners’ Loan Act (12 U.S.C. 1461 et seq.) 

22 is amended by striking the item relating to section 6 and 

23 inserting the following new item: 

‘‘6. State law preemption standards for Federal savings associations and subsidiaries clarified.’’. 


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1 SEC. 147. VISITORIAL STANDARDS. 

2 Section 6 of the Home Owners’ Loan Act (as added 

3 by section 146 of this title) is amended by adding at the 

4 end the following new subsections: 

5 ‘‘(h) VISITORIAL POWERS.— 

6 ‘‘(1) IN GENERAL.—No provision of this Act 

7 shall be construed as limiting or restricting the au8 thority of any attorney general (or other chief law 

9 enforcement officer) of any State to bring any action 

10 in any court of appropriate jurisdiction— 

11 ‘‘(A) to require a Federal savings associa12 tion to produce records relative to the investiga13 tion of violations of State consumer law, or 

14 Federal consumer laws; 

15 ‘‘(B) to enforce any applicable Federal or 

16 State law, as authorized by such law; or 

17 ‘‘(C) on behalf of residents of such State, 

18 to enforce any applicable provision of any Fed19 eral or State law against a Federal savings as20 sociation, as authorized by such law, or to seek 

21 relief and recover damages for such residents 

22 from any violation of any such law by any Fed23 eral savings association. 

24 ‘‘(2) CONSULTATION.—The attorney general (or 

25 other chief law enforcement officer) of any State 


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1 shall consult with the Director or any successor 

2 agency before acting under paragraph (1). 

3 ‘‘(i) ENFORCEMENT ACTIONS.—The ability of the Di4 rector or any successor agency to bring an enforcement 

5 action under this Act or section 5 of the Federal Trade 

6 Commission Act shall not be construed as precluding pri7 vate parties from enforcing rights granted under Federal 

8 or State law in the courts.’’. 

9 SEC. 148. CLARIFICATION OF LAW APPLICABLE TO NON10 DEPOSITORY INSTITUTION SUBSIDIARIES. 

11 Section 6 of the Home Owners’ Loan Act is amended 

12 by adding after subsection (i) (as added by section 147) 

13 the following new subsection: 

14 ‘‘(j) CLARIFICATION OF LAW APPLICABLE TO NON15 DEPOSITORY INSTITUTION SUBSIDIARIES AND AFFILI16 ATES OF FEDERAL SAVINGS ASSOCIATIONS.— 

17 ‘‘(1) DEFINITIONS.—For purposes of this sec18 tion, the following definitions shall apply: 

19 ‘‘(A) DEPOSITORY INSTITUTION, SUB20 SIDIARY, AFFILIATE.—The terms ‘depository in21 stitution’, ‘subsidiary’, and ‘affiliate’ have the 

22 same meanings as in section 3 of the Federal 

23 Deposit Insurance Act. 


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1 ‘‘(B) NONDEPOSITORY INSTITUTION.—The 

2 term ‘nondepository institution’ means any enti3 ty that is not a depository institution. 

4 ‘‘(2) IN GENERAL.—No provision of this title 

5 shall be construed as preempting the applicability of 

6 State law to any nondepository institution, sub7 sidiary, other affiliate, or agent of a Federal savings 

8 association.’’. 

9 SEC. 149. EFFECTIVE DATE. 

10 This subtitle shall take effect on the designated 

11 transfer date. 

12 Subtitle E—Enforcement Powers 

13 SEC. 151. DEFINITIONS. 

14 For purposes of this subtitle, the following definitions 

15 shall apply: 

16 (1) CIVIL INVESTIGATIVE DEMAND AND DE17 MAND.—The terms ‘‘civil investigative demand’’ and 

18 ‘‘demand’’ mean any demand issued by the Agency. 

19 (2) AGENCY INVESTIGATION.—The term 

20 ‘‘Agency investigation’’ means any inquiry conducted 

21 by an Agency investigator for the purpose of 

22 ascertaining whether any person is or has been en23 gaged in any conduct that violates this title, any 

24 enumerated consumer law, or any regulation pre25 scribed or order issued by the Agency under this 


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1 title or under the authorities transferred under sub2 titles F and H. 

3 (3) AGENCY INVESTIGATOR.—The term ‘‘Agen4 cy investigator’’ means any attorney or investigator 

5 employed by the Agency who is charged with the 

6 duty of enforcing or carrying into effect any provi7 sions of this title, any enumerated consumer law, the 

8 authorities transferred under subtitles F and H, or 

9 any regulation prescribed or order issued under this 

10 title or pursuant to any such authority by the Agen11 cy. 

12 (4) CUSTODIAN.—The term ‘‘custodian’’ means 

13 the custodian or any deputy custodian designated by 

14 the Agency. 

15 (5) DOCUMENTARY MATERIAL.—The term 

16 ‘‘documentary material’’ includes the original or any 

17 copy of any book, record, report, memorandum, 

18 paper, communication, tabulation, chart, or other 

19 document. 

20 (6) VIOLATION.—The term ‘‘violation’’ means 

21 any act or omission that, if proved, would constitute 

22 a violation of any provision of this title, any enumer23 ated consumer law, any law for which authorities 

24 were transferred under subtitles F and H, or of any 


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1 regulation prescribed or order issued by the Agency 

2 under this title or pursuant to any such authority. 

3 SEC. 152. INVESTIGATIONS AND ADMINISTRATIVE DIS4 COVERY. 

5 (a) SUBPOENAS.— 

6 (1) IN GENERAL.—The Agency or an Agency 

7 investigator may issue subpoenas for the attendance 

8 and testimony of witnesses and the production of 

9 relevant papers, books, documents, or other material 

10 in connection with hearings under this title. 

11 (2) FAILURE TO OBEY.—In case of contumacy 

12 or refusal to obey a subpoena issued pursuant to 

13 this paragraph and served upon any person, the dis14 trict court of the United States for any district in 

15 which such person is found, resides, or transacts 

16 business, upon application by the Agency or an 

17 Agency investigator and after notice to such person, 

18 shall have jurisdiction to issue an order requiring 

19 such person to appear and give testimony or to ap20 pear and produce documents or other material, or 

21 both. 

22 (3) CONTEMPT.—Any failure to obey an order 

23 of the court under this subsection may be punished 

24 by the court as a contempt thereof. 

25 (b) DEMANDS.— 


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1 (1) IN GENERAL.—Whenever the Agency has 

2 reason to believe that any person may be in posses3 sion, custody, or control of any documentary mate4 rial or tangible things, or may have any information, 

5 relevant to a violation, the Agency may, before the 

6 institution of any proceedings under this title or 

7 under any enumerated consumer law or pursuant to 

8 the authorities transferred under subtitles F and H, 

9 issue in writing, and cause to be served upon such 

10 person, a civil investigative demand requiring such 

11 person to— 

12 (A) produce such documentary material for 

13 inspection and copying or reproduction; 

14 (B) submit such tangible things; 

15 (C) file written reports or answers to ques16 tions; 

17 (D) give oral testimony concerning docu18 mentary material or other information; or 

19 (E) furnish any combination of such mate20 rial, answers, or testimony. 

21 (2) REQUIREMENTS.—Each civil investigative 

22 demand shall state the nature of the conduct consti23 tuting the alleged violation which is under investiga24 tion and the provision of law applicable to such vio25 lation. 


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1 (3) PRODUCTION OF DOCUMENTS.—Each civil 

2 investigative demand for the production of documen3 tary material shall— 

4 (A) describe each class of documentary 

5 material to be produced under the demand with 

6 such definiteness and certainty as to permit 

7 such material to be fairly identified; 

8 (B) prescribe a return date or dates which 

9 will provide a reasonable period of time within 

10 which the material so demanded may be assem11 bled and made available for inspection and 

12 copying or reproduction; and 

13 (C) identify the custodian to whom such 

14 material shall be made available. 

15 (4) PRODUCTION OF THINGS.—Each civil inves16 tigative demand for the submission of tangible 

17 things shall— 

18 (A) describe each class of tangible things 

19 to be submitted under the demand with such 

20 definiteness and certainty as to permit such 

21 things to be fairly identified; 

22 (B) prescribe a return date or dates which 

23 will provide a reasonable period of time within 

24 which the things so demanded may be assem25 bled and submitted; and 


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1 (C) identify the custodian to whom such 

2 things shall be submitted. 

3 (5) DEMAND FOR WRITTEN REPORTS OR AN4 SWERS.—Each civil investigative demand for written 

5 reports or answers to questions shall— 

6 (A) propound with definiteness and cer7 tainty the reports to be produced or the ques8 tions to be answered; 

9 (B) prescribe a date or dates at which time 

10 written reports or answers to questions shall be 

11 submitted; and 

12 (C) identify the custodian to whom such 

13 reports or answers shall be submitted. 

14 (6) ORAL TESTIMONY.—Each civil investigative 

15 demand for the giving of oral testimony shall— 

16 (A) prescribe a date, time, and place at 

17 which oral testimony shall be commenced; and 

18 (B) identify a Agency investigator who 

19 shall conduct the investigation and the custo20 dian to whom the transcript of such investiga21 tion shall be submitted. 

22 (7) SERVICE.— 

23 (A) Any civil investigative demand may be 

24 served by any Agency investigator at any place 


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1 within the territorial jurisdiction of any court of 

2 the United States. 

3 (B) Any such demand or any enforcement 

4 petition filed under this section may be served 

5 upon any person who is not found within the 

6 territorial jurisdiction of any court of the 

7 United States, in such manner as the Federal 

8 Rules of Civil Procedure prescribe for service in 

9 a foreign nation. 

10 (C) To the extent that the courts of the 

11 United States have authority to assert jurisdic12 tion over such person consistent with due proc13 ess, the United States District Court for the 

14 District of Columbia shall have the same juris15 diction to take any action respecting compliance 

16 with this section by such person that such dis17 trict court would have if such person were per18 sonally within the jurisdiction of such district 

19 court. 

20 (8) METHOD OF SERVICE.—Service of any civil 

21 investigative demand or any enforcement petition 

22 filed under this section may be made upon a person, 

23 including any legal entity, by— 

24 (A) delivering a duly executed copy of such 

25 demand or petition to the individual or to any 


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1 partner, executive officer, managing agent, or 

2 general agent of such person, or to any agent 

3 of such person authorized by appointment or by 

4 law to receive service of process on behalf of 

5 such person; 

6 (B) delivering a duly executed copy of such 

7 demand or petition to the principal office or 

8 place of business of the person to be served; or 

9 (C) depositing a duly executed copy in the 

10 United States mails, by registered or certified 

11 mail, return receipt requested, duly addressed 

12 to such person at its principal office or place of 

13 business. 

14 (9) PROOF OF SERVICE.— 

15 (A) A verified return by the individual 

16 serving any civil investigative demand or any 

17 enforcement petition filed under this section 

18 setting forth the manner of such service shall 

19 be proof of such service. 

20 (B) In the case of service by registered or 

21 certified mail, such return shall be accompanied 

22 by the return post office receipt of delivery of 

23 such demand or enforcement petition. 

24 (10) PRODUCTION OF DOCUMENTARY MATE25 RIAL.—The production of documentary material in 


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1 response to a civil investigative demand shall be 

2 made under a sworn certificate, in such form as the 

3 demand designates, by the person, if a natural per4 son, to whom the demand is directed or, if not a 

5 natural person, by any person having knowledge of 

6 the facts and circumstances relating to such produc7 tion, to the effect that all of the documentary mate8 rial required by the demand and in the possession, 

9 custody, or control of the person to whom the de10 mand is directed has been produced and made avail11 able to the custodian. 

12 (11) SUBMISSION OF TANGIBLE THINGS.—The 

13 submission of tangible things in response to a civil 

14 investigative demand shall be made under a sworn 

15 certificate, in such form as the demand designates, 

16 by the person to whom the demand is directed or, 

17 if not a natural person, by any person having knowl18 edge of the facts and circumstances relating to such 

19 production, to the effect that all of the tangible 

20 things required by the demand and in the posses21 sion, custody, or control of the person to whom the 

22 demand is directed have been submitted to the cus23 todian. 

24 (12) SEPARATE ANSWERS.—Each reporting re25 quirement or question in a civil investigative demand 


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1 shall be answered separately and fully in writing 

2 under oath, unless it is objected to, in which event 

3 the reasons for the objection shall be stated in lieu 

4 of an answer, and it shall be submitted under a 

5 sworn certificate, in such form as the demand des6 ignates, by the person, if a natural person, to whom 

7 the demand is directed or, if not a natural person, 

8 by any person responsible for answering each report9 ing requirement or question, to the effect that all in10 formation required by the demand and in the posses11 sion, custody, control, or knowledge of the person to 

12 whom the demand is directed has been submitted. 

13 (13) TESTIMONY.— 

14 (A) PROCEDURE.— 

15 (i) OATH AND RECORDATION.—Any 

16 Agency investigator before whom oral testi17 mony is to be taken shall put the witness 

18 on oath or affirmation and shall person19 ally, or by any individual acting under his 

20 direction and in his presence, record the 

21 testimony of the witness. 

22 (ii) TRANSCRIPTIONS.—The testimony 

23 shall be taken stenographically and tran24 scribed. 


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1 (iii) COPY TO CUSTODIAN.—After the 

2 testimony is fully transcribed, the Agency 

3 investigator before whom the testimony is 

4 taken shall promptly transmit a copy of 

5 the transcript of the testimony to the cus6 todian. 

7 (B) PARTIES PRESENT.—Any Agency in8 vestigator before whom oral testimony is to be 

9 taken shall exclude from the place where the 

10 testimony is to be taken all other persons ex11 cept the person giving the testimony, his or her 

12 attorney, the officer before whom the testimony 

13 is to be taken, and any stenographer taking 

14 such testimony. 

15 (C) LOCATION.—The oral testimony of any 

16 person taken pursuant to a civil investigative 

17 demand shall be taken in the judicial district of 

18 the United States in which such person resides, 

19 is found, or transacts business, or in such other 

20 place as may be agreed upon by the Agency in21 vestigator before whom the oral testimony of 

22 such person is to be taken and such person. 

23 (D) ATTORNEY REPRESENTATION.— 

24 (i) IN GENERAL.—Any person com25 pelled to appear under a civil investigative 


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1 demand for oral testimony pursuant to this 

2 section may be accompanied, represented, 

3 and advised by an attorney. 

4 (ii) CONFIDENTIAL ADVICE.—The at5 torney may advise the person summoned, 

6 in confidence, either upon the request of 

7 such person or upon the initiative of the 

8 attorney, with respect to any question 

9 asked of such person. 

10 (iii) OBJECTIONS.—The person sum11 moned or the attorney may object on the 

12 record to any question, in whole or in part, 

13 and shall briefly state for the record the 

14 reason for the objection. 

15 (iv) REFUSAL TO ANSWER.—An objec16 tion may properly be made, received, and 

17 entered upon the record when it is claimed 

18 that the person summoned is entitled to 

19 refuse to answer the question on grounds 

20 of any constitutional or other legal right or 

21 privilege, including the privilege against 

22 self-incrimination, but such person shall 

23 not otherwise object to or refuse to answer 

24 any question, and shall not otherwise interVerDate Nov 24 2008 22:09 Jul 09, 2009 Jkt 079200 PO 00000 Frm 00086 Fmt 6652 Sfmt 6201 E:\BILLS\H3126.IH H3126

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1 rupt the oral examination, directly or 

2 through such person’s attorney. 

3 (v) PETITION FOR ORDER.—If such 

4 person refuses to answer any question, the 

5 Agency may petition the district court of 

6 the United States pursuant to this section 

7 for an order compelling such person to an8 swer such question. 

9 (vi) BASIS FOR COMPELLING TESTI10 MONY.—If such person refuses to answer 

11 any question on grounds of the privilege 

12 against self-incrimination, the testimony of 

13 such person may be compelled in accord14 ance with the provisions of section 6004 of 

15 title 18, United States Code. 

16 (E) TRANSCRIPTS.— 

17 (i) RIGHT TO EXAMINE.—After the 

18 testimony of any witness is fully tran19 scribed, the Agency investigator shall af20 ford the witness (who may be accompanied 

21 by an attorney) a reasonable opportunity 

22 to examine the transcript. 

23 (ii) READING THE TRANSCRIPT.—The 

24 transcript shall be read to or by the witVerDate Nov 24 2008 22:09 Jul 09, 2009 Jkt 079200 PO 00000 Frm 00087 Fmt 6652 Sfmt 6201 E:\BILLS\H3126.IH H3126

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1 ness, unless such examination and reading 

2 are waived by the witness. 

3 (iii) REQUEST FOR CHANGES.—Any 

4 changes in form or substance which the 

5 witness desires to make shall be entered 

6 and identified upon the transcript by the 

7 Agency investigator with a statement of 

8 the reasons given by the witness for mak9 ing such changes. 

10 (iv) SIGNATURE.—The transcript 

11 shall be signed by the witness, unless the 

12 witness in writing waives the signing, is ill, 

13 cannot be found, or refuses to sign. 

14 (v) AGENCY ACTION IN LIEU OF SIG15 NATURE.—If the transcript is not signed 

16 by the witness during the 30-day period 

17 following the date upon which the witness 

18 is first afforded a reasonable opportunity 

19 to examine it, the Agency investigator shall 

20 sign the transcript and state on the record 

21 the fact of the waiver, illness, absence of 

22 the witness, or the refusal to sign, together 

23 with any reasons given for the failure to 

24 sign. 


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1 (F) CERTIFICATION BY INVESTIGATOR.— 

2 The Agency investigator shall certify on the 

3 transcript that the witness was duly sworn by 

4 the investigator and that the transcript is a 

5 true record of the testimony given by the wit6 ness, and the Agency investigator shall prompt7 ly deliver the transcript or send it by registered 

8 or certified mail to the custodian. 

9 (G) COPY OF TRANSCRIPT.—The Agency 

10 investigator shall furnish a copy of the tran11 script (upon payment of reasonable charges for 

12 the transcript) to the witness only, except that 

13 the Agency may for good cause limit such wit14 ness to inspection of the official transcript of 

15 his testimony. 

16 (H) WITNESS FEES.—Any witness appear17 ing for the taking of oral testimony pursuant to 

18 a civil investigative demand shall be entitled to 

19 the same fees and mileage which are paid to 

20 witnesses in the district courts of the United 

21 States. 

22 (c) CONFIDENTIAL TREATMENT OF DEMAND MATE23 RIAL.— 

24 (1) IN GENERAL.—Materials received as a re25 sult of a civil investigative demand shall be subject 


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1 to requirements and procedures regarding confiden2 tiality, in accordance with regulations established by 

3 the Agency. 

4 (2) DISCLOSURE TO CONGRESS.—No regulation 

5 established by the Agency regarding the confiden6 tiality of materials submitted to, or otherwise ob7 tained by, the Agency shall be intended to prevent 

8 disclosure to either House of Congress or to an ap9 propriate committee of the Congress, except that the 

10 Agency may prescribe regulations allowing prior no11 tice to any party that owns or otherwise provided 

12 the material to the Agency and has designated such 

13 material as confidential. 

14 (d) PETITION FOR ENFORCEMENT.— 

15 (1) IN GENERAL.—Whenever any person fails 

16 to comply with any civil investigative demand duly 

17 served upon such person under this section, or when18 ever satisfactory copying or reproduction of material 

19 requested pursuant to the demand cannot be accom20 plished and such person refuses to surrender such 

21 material, the Agency, through such officers or attor22 neys as it may designate, may file, in the district 

23 court of the United States for any judicial district 

24 in which such person resides, is found, or transacts 

25 business, and serve upon such person, a petition for 


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1 an order of such court for the enforcement of this 

2 section. 

3 (2) SERVICE OF PROCESS.—All process of any 

4 court to which application may be made as provided 

5 in this subsection may be served in any judicial dis6 trict. 

7 (e) PETITION FOR ORDER MODIFYING OR SETTING

8 ASIDE DEMAND.— 

9 (1) IN GENERAL.—Not later than 20 days after 

10 the service of any civil investigative demand upon 

11 any person under subsection (b), or at any time be12 fore the return date specified in the demand, which13 ever period is shorter, or within such period exceed14 ing 20 days after service or in excess of such return 

15 date as may be prescribed in writing, subsequent to 

16 service, by any Agency investigator named in the de17 mand, such person may file with the Agency a peti18 tion for an order by the Agency modifying or setting 

19 aside the demand. 

20 (2) COMPLIANCE DURING PENDENCY.—The 

21 time permitted for compliance with the demand in 

22 whole or in part, as deemed proper and ordered by 

23 the Agency, shall not run during the pendency of 

24 such petition at the Agency, except that such person 


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1 shall comply with any portions of the demand not 

2 sought to be modified or set aside. 

3 (3) SPECIFIC GROUNDS.—Such petition shall 

4 specify each ground upon which the petitioner relies 

5 in seeking such relief, and may be based upon any 

6 failure of the demand to comply with the provisions 

7 of this section, or upon any constitutional or other 

8 legal right or privilege of such person. 

9 (f) CUSTODIAL CONTROL.—At any time during which 

10 any custodian is in custody or control of any documentary 

11 material, tangible things, reports, answers to questions, or 

12 transcripts of oral testimony given by any person in com13 pliance with any civil investigative demand, such person 

14 may file, in the district court of the United States for the 

15 judicial district within which the office of such custodian 

16 is situated, and serve upon such custodian, a petition for 

17 an order of such court requiring the performance by such 

18 custodian of any duty imposed upon such custodian by 

19 this section or regulation prescribed by the Agency. 

20 (g) JURISDICTION OF COURT.— 

21 (1) IN GENERAL.—Whenever any petition is 

22 filed in any district court of the United States under 

23 this section, such court shall have jurisdiction to 

24 hear and determine the matter so presented, and to 


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1 enter such order or orders as may be required to 

2 carry into effect the provisions of this section. 

3 (2) APPEAL.—Any final order so entered shall 

4 be subject to appeal pursuant to section 1291 of title 

5 28, United States Code. 

6 SEC. 153. HEARINGS AND ADJUDICATION PROCEEDINGS. 

7 (a) IN GENERAL.—The Agency may conduct hear8 ings and adjudication proceedings with respect to any per9 son in the manner prescribed by chapter 5 of title 5, 

10 United States Code in order to ensure or enforce compli11 ance with— 

12 (1) the provisions of this title, including any 

13 regulations prescribed by the Agency under this 

14 title; and 

15 (2) any other Federal law that the Agency is 

16 authorized to enforce, including an enumerated con17 sumer law, and any regulations or order prescribed 

18 thereunder, unless such Federal law specifically lim19 its the Agency from conducting a hearing or adju20 dication proceeding and only to the extent of such 

21 limitation. 

22 (b) SPECIAL RULES FOR CEASE-AND-DESIST PRO23 CEEDINGS.— 

24 (1) ISSUANCE.— 


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1 (A) NOTICE OF CHARGES.—If, in the opin2 ion of the Agency, any covered person is engag3 ing or has engaged in an activity that violates 

4 a law, regulation, or any condition imposed in 

5 writing on the person by the Agency, the Agen6 cy may issue and serve upon the person a no7 tice of charges with respect to such violation. 

8 (B) CONTENTS OF NOTICE.—The notice 

9 shall contain a statement of the facts consti10 tuting any alleged violation and shall fix a time 

11 and place at which a hearing will be held to de12 termine whether an order to cease-and-desist 

13 there from should issue against the person. 

14 (C) TIME OF HEARING.—A hearing under 

15 this subsection shall be fixed for a date not ear16 lier than 30 days nor later than 60 days after 

17 service of such notice unless an earlier or a 

18 later date is set by the Agency at the request 

19 of any party so served. 

20 (D) NONAPPEARANCE DEEMED TO BE

21 CONSENT TO ORDER.—Unless the party or par22 ties so served shall appear at the hearing per23 sonally or by a duly authorized representative, 

24 they shall be deemed to have consented to the 

25 issuance of the cease-and-desist order. 


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1 (E) ISSUANCE OF ORDER.—In the event of 

2 such consent, or if upon the record made at any 

3 such hearing, the Agency shall find that any 

4 violation specified in the notice of charges has 

5 been established, the Agency may issue and 

6 serve upon the person an order to cease-and-de7 sist from any such violation or practice. 

8 (F) INCLUDES REQUIREMENT FOR COR9 RECTIVE ACTION.—Such order may, by provi10 sions which may be mandatory or otherwise, re11 quire the person to cease-and-desist from the 

12 same, and, further, to take affirmative action to 

13 correct the conditions resulting from any such 

14 violation. 

15 (2) EFFECTIVENESS OF ORDER.—A cease-and16 desist order shall take effect at the end of the 30- 

17 day period beginning on the date of the service of 

18 such order upon the covered person concerned (ex19 cept in the case of a cease-and-desist order issued 

20 upon consent, which shall take effect at the time 

21 specified therein), and shall remain effective and en22 forceable as provided therein, except to such extent 

23 as it is stayed, modified, terminated, or set aside by 

24 action of the Agency or a reviewing court. 

25 (3) DECISION AND APPEAL.— 


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1 (A) PLACE OF AND PROCEDURES FOR

2 HEARING.—Any hearing provided for in this 

3 subsection shall be held in the Federal judicial 

4 district or in the territory in which the resi5 dence or home office of the person is located 

6 unless the person consents to another place, 

7 and shall be conducted in accordance with the 

8 provisions of chapter 5 of title 5 of the United 

9 States Code. 

10 (B) TIME LIMIT FOR DECISION.—After 

11 such hearing, and within 90 days after the 

12 Agency has notified the parties that the case 

13 has been submitted to it for final decision, the 

14 Agency shall— 

15 (i) render its decision (which shall in16 clude findings of fact upon which its deci17 sion is predicated) and shall issue; and 

18 (ii) serve upon each party to the pro19 ceeding an order or orders consistent with 

20 the provisions of this section. Judicial re21 view of any such order shall be exclusively 

22 as provided in this subsection. 

23 (C) MODIFICATION OF ORDER GEN24 ERALLY.—Unless a petition for review is timely 

25 filed in a court of appeals of the United States, 


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1 as hereinafter provided in paragraph (4), and 

2 thereafter until the record in the proceeding has 

3 been filed as so provided, the Agency may at 

4 any time, upon such notice and in such manner 

5 as it shall deem proper, modify, terminate, or 

6 set aside any such order. 

7 (D) MODIFICATION OF ORDER AFTER FIL8 ING RECORD ON APPEAL.—Upon such filing of 

9 the record, the Agency may modify, terminate, 

10 or set aside any such order with permission of 

11 the court. 

12 (4) APPEAL TO COURT OF APPEALS.— 

13 (A) IN GENERAL.—Any party to any pro14 ceeding under this subsection may obtain a re15 view of any order served pursuant to this sub16 section (other than an order issued with the 

17 consent of the person concerned) by the filing 

18 in the court of appeals of the United States for 

19 the circuit in which the principal office of the 

20 covered person is located, or in the United 

21 States Court of Appeals for the District of Co22 lumbia Circuit, within 30 days after the date of 

23 service of such order, a written petition praying 

24 that the order of the Agency be modified, termi25 nated, or set aside. 


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1 (B) TRANSMITTAL OF COPY TO THE AGEN2 CY.—A copy of such petition shall be forthwith 

3 transmitted by the clerk of the court to the 

4 Agency, and thereupon the Agency shall file in 

5 the court the record in the proceeding, as pro6 vided in section 2112 of title 28 of the United 

7 States Code. 

8 (C) JURISDICTION OF COURT.—Upon the 

9 filing of such petition, such court shall have ju10 risdiction, which upon the filing of the record 

11 shall except as provided in the last sentence of 

12 paragraph (3) be exclusive, to affirm, modify, 

13 terminate, or set aside, in whole or in part, the 

14 order of the agency. 

15 (D) SCOPE OF REVIEW.—Review of such 

16 proceedings shall be had as provided in chapter 

17 7 of title 5 of the United States Code. 

18 (E) FINALITY.—The judgment and decree 

19 of the court shall be final, except that the same 

20 shall be subject to review by the Supreme Court 

21 upon certiorari, as provided in section 1254 of 

22 title 28 of the United States Code. 

23 (5) NO STAY.—The commencement of pro24 ceedings for judicial review under paragraph (4) 


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1 shall not, unless specifically ordered by the court, 

2 operate as a stay of any order issued by the agency. 

3 (c) SPECIAL RULES FOR TEMPORARY CEASE-AND4 DESIST PROCEEDINGS.— 

5 (1) ISSUANCE.— 

6 (A) IN GENERAL.—Whenever the Agency 

7 determines that the violation specified in the 

8 notice of charges served upon a person pursu9 ant to subsection (b), or the continuation there10 of, is likely to cause the person to be insolvent 

11 or otherwise prejudice the interests of con12 sumers before the completion of the proceedings 

13 conducted pursuant to subsection (b), the Agen14 cy may issue a temporary order requiring the 

15 covered person to cease-and-desist from any 

16 such violation or practice and to take affirma17 tive action to prevent or remedy such insolvency 

18 or other condition pending completion of such 

19 proceedings. 

20 (B) OTHER REQUIREMENTS.—Any tem21 porary order issued under this paragraph may 

22 include any requirement authorized under this 

23 subtitle. 

24 (C) EFFECT DATE OF ORDER.—Any tem25 porary order issued under this paragraph shall 


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1 take effect upon service upon the person and, 

2 unless set aside, limited, or suspended by a 

3 court in proceedings authorized by paragraph 

4 (2) of this subsection, shall remain effective and 

5 enforceable pending the completion of the ad6 ministrative proceedings pursuant to such no7 tice and until such time as the Agency shall dis8 miss the charges specified in such notice, or if 

9 a cease-and-desist order is issued against the 

10 person, until the effective date of such order. 

11 (2) APPEAL.—Within 10 days after the person 

12 concerned has been served with a temporary cease13 and-desist order, the person may apply to the United 

14 States district court for the judicial district in which 

15 the home office of the covered person is located, or 

16 the United States District Court for the District of 

17 Columbia, for an injunction setting aside, limiting, 

18 or suspending the enforcement, operation, or effec19 tiveness of such order pending the completion of the 

20 administrative proceedings pursuant to the notice of 

21 charges served upon the person under subsection 

22 (b), and such court shall have jurisdiction to issue 

23 such injunction. 

24 (3) INCOMPLETE OR INACCURATE RECORDS.— 


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1 (A) TEMPORARY ORDER.—If a notice of 

2 charges served under subsection (b) specifies, 

3 on the basis of particular facts and cir4 cumstances, that a person’s books and records 

5 are so incomplete or inaccurate that the Agency 

6 is unable to determine the financial condition of 

7 that person or the details or purpose of any 

8 transaction or transactions that may have a 

9 material effect on the financial condition of that 

10 person, the Agency may issue a temporary 

11 order requiring— 

12 (i) the cessation of any activity or 

13 practice which gave rise, whether in whole 

14 or in part, to the incomplete or inaccurate 

15 state of the books or records; or 

16 (ii) affirmative action to restore such 

17 books or records to a complete and accu18 rate state, until the completion of the pro19 ceedings under subsection (b)(1). 

20 (B) EFFECTIVE PERIOD.—Any temporary 

21 order issued under subparagraph (A)— 

22 (i) shall take effect upon service; and 

23 (ii) unless set aside, limited, or sus24 pended by a court in proceedings under 


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1 paragraph (2), shall remain in effect and 

2 enforceable until the earlier of— 

3 (I) the completion of the pro4 ceeding initiated under subsection (b) 

5 in connection with the notice of 

6 charges; or 

7 (II) the date the Agency deter8 mines, by examination or otherwise, 

9 that the person’s books and records 

10 are accurate and reflect the financial 

11 condition of the person. 

12 (d) SPECIAL RULES FOR ENFORCEMENT OF OR13 DERS.— 

14 (1) IN GENERAL.—The Agency may in its dis15 cretion apply to the United States district court 

16 within the jurisdiction of which the principal office 

17 of the covered person is located, for the enforcement 

18 of any effective and outstanding notice or order 

19 issued under this section, and such court shall have 

20 jurisdiction and power to order and require compli21 ance herewith. 

22 (2) EXCEPTION.—Except as otherwise provided 

23 in this subsection, no court shall have jurisdiction to 

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1 ify, suspend, terminate, or set aside any such notice 

2 or order. 

3 (e) REGULATIONS.—The Agency shall prescribe regu4 lations establishing such procedures as may be necessary 

5 to carry out this section. 

6 SEC. 154. LITIGATION AUTHORITY. 

7 (a) IN GENERAL.—If any person violates a provision 

8 of this title, any enumerated consumer law, any law for 

9 which authorities were transferred under subtitles F and 

10 H, or any regulation prescribed or order issued by the 

11 Agency under this title or pursuant to any such authority, 

12 the Agency may commence a civil action against such per13 son to impose a civil penalty or to seek all appropriate 

14 legal or equitable relief including a permanent or tem15 porary injunction as permitted by law. 

16 (b) REPRESENTATION.—The Agency may act in its 

17 own name and through its own attorneys in enforcing any 

18 provision of this title, regulations under this title, or any 

19 other law or regulation, or in any action, suit, or pro20 ceeding to which the Agency is a party. 

21 (c) COMPROMISE OF ACTIONS.—The Agency may 

22 compromise or settle any action if such compromise is ap23 proved by the court. 

24 (d) NOTICE TO THE ATTORNEY GENERAL.—When 

25 commencing a civil action under this title, any enumerated 


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1 consumer law, any law for which authorities were trans2 ferred under subtitles F and H, or any regulation there3 under, the Agency shall notify the Attorney General. 

4 (e) APPEARANCE BEFORE THE SUPREME COURT.— 

5 The Agency may represent itself in its own name before 

6 the Supreme Court of the United States, if— 

7 (1) the Agency makes a written request to the 

8 Attorney General within the 10-day period which be9 gins on the date of entry of the judgment which 

10 would permit any party to file a petition for writ of 

11 certiorari; and 

12 (2) the Attorney General concurs with such re13 quest or fails to take action within 60 days of the 

14 Agency’s request. 

15 (f) FORUM.—Any civil action brought under this title 

16 may be brought in a United States district court or in 

17 any court of competent jurisdiction of a state in a district 

18 in which the defendant is located or resides or is doing 

19 business, and such court shall have jurisdiction to enjoin 

20 such person and to require compliance with this title, any 

21 enumerated consumer law, any law for which authorities 

22 were transferred under subtitles F and H, or any regula23 tion prescribed or order issued by the Agency under this 

24 title or pursuant to any such authority. 

25 (g) TIME FOR BRINGING ACTION.— 


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1 (1) IN GENERAL.—Except as otherwise per2 mitted by law, no action may be brought under this 

3 title more than 3 years after the violation to which 

4 an action relates. 

5 (2) LIMITATIONS UNDER OTHER FEDERAL

6 LAWS.— 

7 (A) For purposes of this section, an action 

8 arising under this title shall not include claims 

9 arising solely under enumerated consumer laws. 

10 (B) In any action arising solely under an 

11 enumerated consumer law, the Agency may 

12 commence, defend, or intervene in the action in 

13 accordance with the requirements of that law, 

14 as applicable. 

15 (C) In any action arising solely under the 

16 laws for which authorities were transferred by 

17 subtitles F and H, the Agency may commence, 

18 defend, or intervene in the action in accordance 

19 with the requirements of that law, as applicable. 

20 SEC. 155. RELIEF AVAILABLE. 

21 (a) ADMINISTRATIVE PROCEEDINGS OR COURT AC22 TIONS.— 

23 (1) JURISDICTION.—The court (or Agency, as 

24 the case may be) in an action or adjudication pro25 ceeding brought under this title, any enumerated 


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1 consumer law, or any law for which authorities were 

2 transferred by subtitles F and H, shall have jurisdic3 tion to grant any appropriate legal or equitable relief 

4 with respect to a violation of this title, any enumer5 ated consumer law, and any law for which authori6 ties were transferred by subtitles F and H, including 

7 a violation of a regulation prescribed or order issued 

8 under this title, any enumerated consumer law and 

9 any law for which authorities were transferred by 

10 subtitles F and H. 

11 (2) RELIEF.—Such relief may include— 

12 (A) rescission or reformation of contracts; 

13 (B) refund of moneys or return of real 

14 property; 

15 (C) restitution; 

16 (D) compensation for unjust enrichment; 

17 (E) payment of damages; 

18 (F) public notification regarding the viola19 tion, including the costs of notification; 

20 (G) limits on the activities or functions of 

21 the person; and 

22 (H) civil money penalties, as set forth 

23 more fully in subsection (d). 

24 (3) NO EXEMPLARY OR PUNITIVE DAMAGES.— 

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1 thorizing the imposition of exemplary or punitive 

2 damages. 

3 (b) RECOVERY OF COSTS.—In any action brought by 

4 the Agency to enforce any provision of this title, any enu5 merated consumer law, any law for which authorities were 

6 transferred by subtitles F and H, or any regulation pre7 scribed or order issued by the Agency under this title or 

8 pursuant to any such authority, the Agency may recover 

9 its costs in connection with prosecuting such action if the 

10 Agency is the prevailing party in the action. 

11 (c) CIVIL MONEY PENALTY IN COURT AND ADMINIS12 TRATIVE ACTIONS.— 

13 (1) Any person that violates any provision of 

14 this title, any enumerated consumer law, or any reg15 ulation prescribed or order issued by the Agency 

16 under this title shall forfeit and pay a civil penalty 

17 pursuant to this subsection determined as follows: 

18 (A) FIRST TIER.—For any violation of a 

19 final order or condition imposed in writing by 

20 the Agency, a civil penalty shall not exceed 

21 $5,000 for each day during which such violation 

22 continues. 

23 (B) SECOND TIER.—Notwithstanding 

24 paragraph (A), for any violation of a regulation 

25 prescribed under section 136 or for any person 


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1 that recklessly engages in a violation of this 

2 title, any enumerated consumer law, or any reg3 ulation prescribed or order issued by the Agen4 cy under this title, relating to the provision of 

5 an alternative consumer financial product or 

6 service, a civil penalty shall not exceed $25,000 

7 for each day during which such violation con8 tinues. 

9 (C) THIRD TIER.—Notwithstanding sub10 paragraphs (A) and (B), for any person that 

11 knowingly violates this title, any enumerated 

12 consumer law, or any regulation prescribed or 

13 order issued by the Agency under this title, a 

14 civil penalty shall not exceed $1,000,000 for 

15 each day during which such violation continues. 

16 (2) MITIGATING FACTORS.—In determining the 

17 amount of any penalty assessed under paragraph 

18 (1), the Agency or the court shall take into account 

19 the appropriateness of the penalty with respect to— 

20 (A) the size of financial resources and good 

21 faith of the person charged; 

22 (B) the gravity of the violation; 

23 (C) the severity of the risks to or losses of 

24 the consumer, which may take into account the 

25 number of products or services sold or provided; 


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1 (D) the history of previous violations; and 

2 (E) such other matters as justice may re3 quire. 

4 (3) AUTHORITY TO MODIFY OR REMIT PEN5 ALTY.—The Agency may compromise, modify, or 

6 remit any penalty which may be assessed or had al7 ready been assessed under paragraph (1). The 

8 amount of such penalty, when finally determined, 

9 shall be exclusive of any sums owed by the person 

10 to the United States in connection with the costs of 

11 the proceeding, and may be deducted from any sums 

12 owing by the United States to the person charged. 

13 (4) NOTICE AND HEARING.—No civil penalty 

14 may be assessed with respect to a violation of this 

15 title, any enumerated consumer law, or any regula16 tion prescribed or order issued by the Agency, un17 less— 

18 (A) the Agency gives notice and an oppor19 tunity for a hearing to the person accused of 

20 the violation; or 

21 (B) the appropriate court has ordered such 

22 assessment and entered judgment in favor of 

23 the Agency. 


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1 SEC. 156. REFERRALS FOR CRIMINAL PROCEEDINGS. 

2 Whenever the Agency obtains evidence that any per3 son, either domestic or foreign, has engaged in conduct 

4 that may constitute a violation of Federal criminal law, 

5 the Agency shall have the power to transmit such evidence 

6 to the Attorney General, who may institute criminal pro7 ceedings under appropriate law. Nothing in this section 

8 affects any other authority of the Agency to disclose infor9 mation. 

10 SEC. 157. EMPLOYEE PROTECTION. 

11 (a) IN GENERAL.—No person shall terminate or in 

12 any other way discriminate against, or cause to be termi13 nated or discriminated against, any employee or any au14 thorized representative of employees by reason of the fact 

15 that such employee or representative has provided infor16 mation to the Agency, filed, instituted or caused to be filed 

17 or instituted any proceeding under this title, any enumer18 ated consumer law, or any law for which authorities were 

19 transferred by subtitles F and H, or has testified or is 

20 about to testify in any proceeding resulting from the ad21 ministration or enforcement of the provisions of this title. 

22 (b) AGENCY REVIEW OF TERMINATION.— 

23 (1) APPLICATION FOR REVIEW.—Any employee 

24 or representative of employees who believes that he 

25 has been terminated or otherwise discriminated 

26 against by any person in violation of subsection (a) 


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1 may, within 45 days after such alleged violated oc2 curs, apply to the Agency for review of such termi3 nation or alleged discrimination. 

4 (2) COPY TO RESPONDENT.—A copy of the ap5 plication shall be sent to the person who is alleged 

6 to have terminated or otherwise discriminated 

7 against an employee, and such person shall be the 

8 respondent. 

9 (3) INVESTIGATION.—Upon receipt of such ap10 plication, the Agency shall cause such investigation 

11 to be made as the Agency deems appropriate. 

12 (4) HEARING.—Any investigation under this 

13 subsection shall provide an opportunity for a public 

14 hearing at the request of any party to such review 

15 to enable the parties to present information relating 

16 to such alleged violation. 

17 (5) NOTICE OF TIME AND PLACE FOR HEAR18 ING.—The parties shall be given written notice of 

19 the time and place of the hearing at least 5 days 

20 prior to the hearing. 

21 (6) PROCEDURE.—Any hearing under this sub22 section shall be of record and shall be subject to sec23 tion 554 of title 5, United States Code. 

24 (7) DETERMINATION.— 


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1 (A) IN GENERAL.—Upon receiving the re2 port of such investigation, the Agency shall 

3 make findings of fact. 

4 (B) ISSUANCE OF DECISION.—If the Agen5 cy finds that there is sufficient evidence in the 

6 record to conclude that such a violation did 

7 occur, the Agency shall issue a decision, incor8 porating an order therein and the Agency’s 

9 findings, requiring the party committing such 

10 violation to take such affirmative action to 

11 abate the violation as the Agency deems appro12 priate, including reinstating or rehiring the em13 ployee or representative of employees to the 

14 former position with compensation. 

15 (C) DENIAL OF APPLICATION.—If the 

16 Agency finds insufficient evidence to support 

17 the allegations made in the application, the 

18 Agency shall deny the application. 

19 (8) JUDICIAL REVIEW.—An order issued by the 

20 Agency under this subsection (b) shall be subject to 

21 judicial review in the same manner as orders and de22 cisions are subject to judicial review under this title 

23 or any enumerated consumer law. 

24 (c) COSTS AND EXPENSES.—Whenever an order is 

25 issued under this section to abate such violation, at the 


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1 request of the applicant a sum equal to the aggregate 

2 amount of all costs and expenses (including attorney’s 

3 fees) determined by the Agency to have been reasonably 

4 incurred by the applicant for, or in connection with, the 

5 application and prosecution of such proceedings shall be 

6 assessed against the person committing such violation. 

7 (d) EXCEPTION.—This section shall not apply to any 

8 employee who acting without discretion from the employer 

9 of such employee (or the employer’s agent) deliberately 

10 violates any requirement of this title or any enumerated 

11 consumer law. 

12 SEC. 158. EFFECTIVE DATE. 

13 This subtitle shall take effect on the designated 

14 transfer date. 

15 Subtitle F—Transfer of Functions 

16 and Personnel; Transitional 

17 Provisions 

18 SEC. 161. TRANSFER OF CERTAIN FUNCTIONS. 

19 (a) IN GENERAL.—Except as provided in subsection 

20 (b), consumer financial protection functions are trans21 ferred as follows: 

22 (1) BOARD OF GOVERNORS.— 

23 (A) TRANSFER OF FUNCTIONS.—All con24 sumer financial protection functions of the 


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1 Board of Governors are transferred to the 

2 Agency. 

3 (B) BOARD OF GOVERNORS’ AUTHORITY.— 

4 The Agency shall have all powers and duties 

5 that were vested in the Board of Governors, re6 lating to consumer financial protection func7 tions, on the day before the designated transfer 

8 date. 

9 (2) COMPTROLLER OF THE CURRENCY.— 

10 (A) TRANSFER OF FUNCTIONS.—All con11 sumer financial protection functions of the 

12 Comptroller of the Currency are transferred to 

13 the Agency. 

14 (B) COMPTROLLER’S AUTHORITY.—The 

15 Agency shall have all powers and duties that 

16 were vested in the Comptroller of the Currency, 

17 relating to consumer financial protection func18 tions, on the day before the designated transfer 

19 date. 

20 (3) DIRECTOR OF THE OFFICE OF THRIFT SU21 PERVISION.— 

22 (A) TRANSFER OF FUNCTIONS.—All con23 sumer financial protection functions of the Di24 rector of the Office of Thrift Supervision are 

25 transferred to the Agency. 


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1 (B) DIRECTOR’S AUTHORITY.—The Agen2 cy shall have all powers and duties that were 

3 vested in the Director of the Office of Thrift 

4 Supervision, relating to consumer financial pro5 tection functions, on the day before the des6 ignated transfer date. 

7 (4) FEDERAL DEPOSIT INSURANCE CORPORA8 TION.— 

9 (A) TRANSFER OF FUNCTIONS.—All con10 sumer financial protection functions of the Fed11 eral Deposit Insurance Corporation are trans12 ferred to the Agency. 

13 (B) CORPORATION’S AUTHORITY.—The 

14 Agency shall have all powers and duties that 

15 were vested in the Federal Deposit Insurance 

16 Corporation, relating to consumer financial pro17 tection functions, on the day before the des18 ignated transfer date. 

19 (5) FEDERAL TRADE COMMISSION.— 

20 (A) TRANSFER OF FUNCTIONS.—All con21 sumer financial protection functions of the Fed22 eral Trade Commission are transferred to the 

23 Agency. 

24 (B) COMMISSION’S AUTHORITY.—The 

25 Agency shall have all powers and duties that 


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1 were vested in the Federal Trade Commission, 

2 relating to consumer financial protection func3 tions, on the day before the designated transfer 

4 date. 

5 (6) NATIONAL CREDIT UNION ADMINISTRA6 TION.— 

7 (A) TRANSFER OF FUNCTIONS.—All con8 sumer financial protection functions of the Na9 tional Credit Union Administration are trans10 ferred to the Agency. 

11 (B) NATIONAL CREDIT UNION ADMINIS12 TRATION’S AUTHORITY.—The Agency shall have 

13 all powers and duties that were vested in the 

14 National Credit Union Administration, relating 

15 to consumer financial protection functions, on 

16 the day before the designated transfer date. 

17 (b) TRANSFERS OF FUNCTIONS SUBJECT TO BACK18 STOP ENFORCEMENT AUTHORITY REMAINING WITH

19 TRANSFEROR AGENCIES.—The transfers of functions in 

20 subsection (a) shall not affect the authority of the agencies 

21 identified in subsection (a) from initiating enforcement 

22 proceedings under the circumstances described in section 

23 122(e)(3). 

24 (c) TERMINATION OF AUTHORITY OF TRANSFEROR

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1 CIAL PROTECTION PURPOSES.—Authorities of the agen2 cies identified in subsection (a) to assess and collect fees 

3 to cover the cost of conducting consumer financial protec4 tion functions shall terminate on the day before the des5 ignated transfer date. 

6 (d) CONSUMER FINANCIAL PROTECTION FUNCTIONS

7 DEFINED.—For purposes of this subtitle, the term ‘‘con8 sumer financial protection functions’’ means research, 

9 rulemaking, issuance of orders or guidance, supervision, 

10 examination, and enforcement activities, powers, and du11 ties relating to the provision of consumer financial prod12 ucts or services, including the authority to assess and col13 lect fees for those purposes, except that such term shall 

14 not include any such function relating to an agency’s re15 sponsibilities under the Community Reinvestment Act of 

16 1977. 

17 (e) EFFECTIVE DATE.—Subsections (a) and (b) shall 

18 take effect on the designated transfer date. 

19 SEC. 162. DESIGNATED TRANSFER DATE. 

20 (a) IN GENERAL.—Not later than 60 days after the 

21 date of the enactment of this Act, the Secretary— 

22 (1) shall, in consultation with the Chairman of 

23 the Board of Governors, the Chairperson of the Fed24 eral Deposit Insurance Corporation, the Chairman 

25 of the Federal Trade Commission, the Chairman of 


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1 the National Credit Union Administration Board, 

2 the Comptroller of the Currency, the Director of the 

3 Office of Thrift Supervision, and the Director of the 

4 Office of Management and Budget, designate a sin5 gle calendar date for the transfer of functions to the 

6 Agency under section 161; and 

7 (2) shall publish notice of that designation in 

8 the Federal Register. 

9 (b) CHANGING DESIGNATION.—The Secretary— 

10 (1) may, in consultation with the Chairman of 

11 the Board of Governors, the Chairperson of the Fed12 eral Deposit Insurance Corporation, the Chairman 

13 of the Federal Trade Commission, the Chairman of 

14 the National Credit Union Administration Board, 

15 the Comptroller of the Currency, the Director of the 

16 Office of Thrift Supervision, and the Director of the 

17 Office of Management and Budget, change the date 

18 designated under subsection (a); and 

19 (2) shall publish notice of any changed designa20 tion in the Federal Register. 

21 (c) PERMISSIBLE DATES.— 

22 (1) IN GENERAL.—Except as provided in para23 graph (2), any date designated under this section 

24 shall be not earlier than 180 days nor later than 18 

25 months after the date of the enactment of this Act. 


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1 (2) EXTENSION OF TIME.—The Secretary may 

2 designate a date that is later than 18 months after 

3 the date of the enactment of this Act if the Sec4 retary transmits to appropriate committees of Con5 gress— 

6 (A) a written determination that orderly 

7 implementation of this title is not feasible on 

8 the date that is 18 months after the date of the 

9 enactment of this Act; 

10 (B) an explanation of why an extension is 

11 necessary for the orderly implementation of this 

12 title; and 

13 (C) a description of the steps that will be 

14 taken to effect an orderly and timely implemen15 tation of this title within the extended time pe16 riod. 

17 (3) EXTENSION LIMITED.—In no case shall any 

18 date designated under this section be later than 24 

19 months after the date of the enactment of this Act. 

20 SEC. 163. SAVINGS PROVISIONS. 

21 (a) BOARD OF GOVERNORS.— 

22 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA23 TIONS NOT AFFECTED.—Section 161(a)(1) shall not 

24 affect the validity of any right, duty, or obligation of 


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1 the United States, the Board of Governors (or any 

2 Federal reserve bank), or any other person that— 

3 (A) arises under any provision of law relat4 ing to any consumer financial protection func5 tion of the Board of Governors transferred to 

6 the Agency by this title; and 

7 (B) existed on the day before the des8 ignated transfer date. 

9 (2) CONTINUATION OF SUITS.—This Act shall 

10 not abate any proceeding commenced by or against 

11 the Board of Governors (or any Federal reserve 

12 bank) before the designated transfer date with re13 spect to any consumer financial protection function 

14 of the Board of Governors (or any Federal reserve 

15 bank) transferred to the Agency by this title, except 

16 that the Agency shall be substituted for the Board 

17 of Governors (or Federal reserve bank) as a party 

18 to any such proceeding as of the designated transfer 

19 date. 

20 (b) FEDERAL DEPOSIT INSURANCE CORPORATION.— 

21 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA22 TIONS NOT AFFECTED.—Section 161(a)(4) shall not 

23 affect the validity of any right, duty, or obligation of 

24 the United States, the Federal Deposit Insurance 


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1 Corporation, the Board of Directors of that Corpora2 tion, or any other person, that— 

3 (A) arises under any provision of law relat4 ing to any consumer financial protection func5 tion of the Federal Deposit Insurance Corpora6 tion transferred to the Agency by this title; and 

7 (B) existed on the day before the des8 ignated transfer date. 

9 (2) CONTINUATION OF SUITS.—This Act shall 

10 not abate any proceeding commenced by or against 

11 the Federal Deposit Insurance Corporation (or the 

12 Board of Directors of that Corporation) before the 

13 designated transfer date with respect to any con14 sumer financial protection function of the Federal 

15 Deposit Insurance Corporation transferred to the 

16 Agency by this title, except that the Agency shall be 

17 substituted for the Federal Deposit Insurance Cor18 poration (or Board of Directors) as a party to any 

19 such proceeding as of the designated transfer date. 

20 (c) FEDERAL TRADE COMMISSION.— 

21 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA22 TIONS NOT AFFECTED.—Section 161(a)(5) shall not 

23 affect the validity of any right, duty, or obligation of 

24 the United States, the Federal Trade Commission, 

25 or any other person, that— 


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1 (A) arises under any provision of law relat2 ing to any consumer financial protection func3 tion of the Federal Trade Commission trans4 ferred to the Agency by this title; and 

5 (B) existed on the day before the des6 ignated transfer date. 

7 (2) CONTINUATION OF SUITS.—This Act shall 

8 not abate any proceeding commenced by or against 

9 the Federal Trade Commission before the designated 

10 transfer date with respect to any consumer financial 

11 protection function of the Federal Trade Commis12 sion transferred to the Agency by this title, except 

13 that the Agency shall be substituted for the Federal 

14 Trade Commission as a party to any such pro15 ceeding as of the designated transfer date. 

16 (d) NATIONAL CREDIT UNION ADMINISTRATION.— 

17 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA18 TIONS NOT AFFECTED.—Section 161(a)(6) shall not 

19 affect the validity of any right, duty, or obligation of 

20 the United States, the National Credit Union Ad21 ministration, the National Credit Union Administra22 tion Board, or any other person, that— 

23 (A) arises under any provision of law relat24 ing to any consumer financial protection funcVerDate Nov 24 2008 22:09 Jul 09, 2009 Jkt 079200 PO 00000 Frm 00122 Fmt 6652 Sfmt 6201 E:\BILLS\H3126.IH H3126

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1 tion of the National Credit Union Administra2 tion transferred to the Agency by this title; and 

3 (B) existed on the day before the des4 ignated transfer date. 

5 (2) CONTINUATION OF SUITS.—This Act shall 

6 not abate any proceeding commenced by or against 

7 the National Credit Union Administration (or the 

8 National Credit Union Administration Board) before 

9 the designated transfer date with respect to any con10 sumer financial protection function of the National 

11 Credit Union Administration transferred to the 

12 Agency by this title, except that the Agency shall be 

13 substituted for the National Credit Union Adminis14 tration (or National Credit Union Administration 

15 Board) as a party to any such proceeding as of the 

16 designated transfer date. 

17 (e) COMPTROLLER OF THE CURRENCY.— 

18 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA19 TIONS NOT AFFECTED.—Section 161(a)(2) shall not 

20 affect the validity of any right, duty, or obligation of 

21 the United States, the Comptroller of the Currency, 

22 the Office of the Comptroller of the Currency, or 

23 any other person, that— 

24 (A) arises under any provision of law relat25 ing to any consumer financial protection funcVerDate Nov 24 2008 22:09 Jul 09, 2009 Jkt 079200 PO 00000 Frm 00123 Fmt 6652 Sfmt 6201 E:\BILLS\H3126.IH H3126

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1 tion of the Comptroller of the Currency trans2 ferred to the Agency by this title; and 

3 (B) existed on the day before the des4 ignated transfer date. 

5 (2) CONTINUATION OF SUITS.—This Act shall 

6 not abate any proceeding commenced by or against 

7 the Comptroller of the Currency (or the Office of the 

8 Comptroller of the Currency) with respect to any 

9 consumer financial protection function of the Comp10 troller of the Currency transferred to the Agency by 

11 this title before the designated transfer date, except 

12 that the Agency shall be substituted for the Comp13 troller of the Currency (or the Office of the Comp14 troller of the Currency) as a party to any such pro15 ceeding as of the designated transfer date. 

16 (f) OFFICE OF THRIFT SUPERVISION.— 

17 (1) EXISTING RIGHTS, DUTIES, AND OBLIGA18 TIONS NOT AFFECTED.—Section 161(a)(3) shall not 

19 affect the validity of any right, duty, or obligation of 

20 the United States, the Director of the Office of 

21 Thrift Supervision, the Office of Thrift Supervision, 

22 or any other person, that— 

23 (A) arises under any provision of law relat24 ing to any consumer financial protection func25 tion of the Director of the Office of Thrift SuVerDate Nov 24 2008 22:09 Jul 09, 2009 Jkt 079200 PO 00000 Frm 00124 Fmt 6652 Sfmt 6201 E:\BILLS\H3126.IH H3126

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1 pervision transferred to the Agency by this title; 

2 and 

3 (B) that existed on the day before the des4 ignated transfer date. 

5 (2) CONTINUATION OF SUITS.—This Act shall 

6 not abate any proceeding commenced by or against 

7 the Director of the Office of Thrift Supervision (or 

8 the Office of Thrift Supervision) with respect to any 

9 consumer financial protection function of the Direc10 tor of the Office of Thrift Supervision transferred to 

11 the Agency by this title before the designated trans12 fer date, except that the Agency shall be substituted 

13 for the Director (or the Office of Thrift Supervision) 

14 as a party to any such proceeding as of the des15 ignated transfer date. 

16 (g) CONTINUATION OF EXISTING ORDERS, REGULA17 TIONS, DETERMINATIONS, AGREEMENTS, AND RESOLU18 TIONS.—All orders, resolutions, determinations, agree19 ments, and regulations that have been issued, made, pre20 scribed, or allowed to become effective by the Board of 

21 Governors (or any Federal reserve bank), the Federal De22 posit Insurance Corporation, the Federal Trade Commis23 sion, the National Credit Union Administration, the Office 

24 of the Comptroller of the Currency, or the Office of Thrift 

25 Supervision, or by a court of competent jurisdiction, in 


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1 the performance of consumer financial protection func2 tions that are transferred by this title and that are in ef3 fect on the day before the designated transfer date, shall 

4 continue in effect according to the terms of those orders, 

5 resolutions, determinations, agreements, and regulations, 

6 and shall be enforceable by or against the Agency until 

7 modified, terminated, set aside, or superseded in accord8 ance with applicable law by the Agency, by any court of 

9 competent jurisdiction, or by operation of law. 

10 (h) IDENTIFICATION OF REGULATIONS CONTIN11 UED.—Not later than the designated transfer date, the 

12 Agency— 

13 (1) shall, after consultation with the Chairman 

14 of the Board of Governors, the Chairperson of the 

15 Federal Deposit Insurance Corporation, the Chair16 man of the Federal Trade Commission, the Chair17 man of the National Credit Union Administration 

18 Board, the Comptroller of the Currency, and the Di19 rector of the Office of Thrift Supervision, identify 

20 the regulations continued under subsection (g) that 

21 will be enforced by the Agency; and 

22 (2) shall publish a list of such regulations in 

23 the Federal Register. 

24 (i) STATUS OF REGULATIONS PROPOSED OR NOT

25 YET EFFECTIVE.— 


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1 (1) PROPOSED REGULATIONS.—Any proposed 

2 regulation of the Board of Governors, the Federal 

3 Deposit Insurance Corporation, the Federal Trade 

4 Commission, the National Credit Union Administra5 tion, the Office of the Comptroller of the Currency, 

6 or the Office of Thrift Supervision, which that agen7 cy, in performing consumer financial protection 

8 functions transferred by this title, has proposed be9 fore the designated transfer date but has not pub10 lished as a final rule before that date, shall be 

11 deemed to be a proposed regulation of the Agency. 

12 (2) REGULATIONS NOT YET EFFECTIVE.—Any 

13 interim or final regulation of Board of Governors, 

14 the Federal Deposit Insurance Corporation, the Fed15 eral Trade Commission, the National Credit Union 

16 Administration, the Office of the Comptroller of the 

17 Currency, or the Office of Thrift Supervision, which 

18 that agency, in performing consumer financial pro19 tection functions transferred by this title, has pub20 lished before the designated transfer date but which 

21 has not become effective before that date, shall take 

22 effect as a regulation of the Agency according to its 

23 terms. 

24 SEC. 164. TRANSFER OF CERTAIN PERSONNEL. 

25 (a) IN GENERAL.— 


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1 (1) CERTAIN FEDERAL RESERVE SYSTEM EM2 PLOYEES TRANSFERRED.— 

3 (A) IDENTIFYING EMPLOYEES FOR TRANS4 FER.—The Agency and the Board of Governors 

5 shall— 

6 (i) jointly determine the number of 

7 employees of the Board necessary to per8 form or support the consumer financial 

9 protection functions of the Board of Gov10 ernors that are transferred to the Agency 

11 by this title; and 

12 (ii) consistent with the number deter13 mined under clause (i), jointly identify em14 ployees of the Board of Governors for 

15 transfer to the Agency in a manner that 

16 the Agency and the Board of Governors, in 

17 their sole discretion, deem equitable. 

18 (B) IDENTIFIED EMPLOYEES TRANS19 FERRED.—All employees of the Board of Gov20 ernors identified under subparagraph (A)(ii) 

21 shall be transferred to the Agency for employ22 ment. 

23 (C) FEDERAL RESERVE BANK EMPLOY24 EES.—Employees of any Federal reserve bank 

25 who, on the day before the designated transfer 


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1 date, are performing consumer financial protec2 tion functions on behalf of the Board of Gov3 ernors shall be treated as employees of the 

4 Board of Governors for purposes of subpara5 graphs (A) and (B). 

6 (2) CERTAIN FDIC EMPLOYEES TRANS7 FERRED.— 

8 (A) IDENTIFYING EMPLOYEES FOR TRANS9 FER.—The Agency and the Board of Directors 

10 of the Federal Deposit Insurance Corporation 

11 shall— 

12 (i) jointly determine the number of 

13 employees of that Corporation necessary to 

14 perform or support the consumer financial 

15 protection functions of the Corporation 

16 that are transferred to the Agency by this 

17 title; and 

18 (ii) consistent with the number deter19 mined under clause (i), jointly identify em20 ployees of the Corporation for transfer to 

21 the Agency in a manner that the Agency 

22 and the Board of Directors of the Corpora23 tion, in their sole discretion, deem equi24 table. 


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1 (B) IDENTIFIED EMPLOYEES TRANS2 FERRED.—All employees of the Corporation 

3 identified under subparagraph (A)(ii) shall be 

4 transferred to the Agency for employment. 

5 (3) CERTAIN NCUA EMPLOYEES TRANS6 FERRED.— 

7 (A) IDENTIFYING EMPLOYEES FOR TRANS8 FER.—The Agency and the National Credit 

9 Union Administration Board shall— 

10 (i) jointly determine the number of 

11 employees of the National Credit Union 

12 Administration necessary to perform or 

13 support the consumer financial protection 

14 functions of the National Credit Union Ad15 ministration that are transferred to the 

16 Agency by this title; and 

17 (ii) consistent with the number deter18 mined under clause (i), jointly identify em19 ployees of the National Credit Union Ad20 ministration for transfer to the Agency in 

21 a manner that the Agency and the Na22 tional Credit Union Administration Board, 

23 in their sole discretion, deem equitable. 

24 (B) IDENTIFIED EMPLOYEES TRANS25 FERRED.—All employees of the National Credit 


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1 Union Administration identified under subpara2 graph (A)(ii) shall be transferred to the Agency 

3 for employment. 

4 (4) APPOINTMENT AUTHORITY FOR EXCEPTED

5 SERVICE AND SENIOR EXECUTIVE SERVICE TRANS6 FERRED.— 

7 (A) IN GENERAL.—In the case of employ8 ees occupying positions in the excepted service 

9 or the Senior Executive Service, any appoint10 ment authority established pursuant to law or 

11 regulations of the Office of Personnel Manage12 ment for filling such positions shall be trans13 ferred, subject to subparagraph (B). 

14 (B) DECLINING TRANSFERS ALLOWED.— 

15 An agency or entity may decline to make a 

16 transfer of authority under subparagraph (A) 

17 (and the employees appointed pursuant thereto) 

18 to the extent that such authority relates to posi19 tions excepted from the competitive service be20 cause of their confidential, policy-making, pol21 icy-determining, or policy-advocating character, 

22 and non-career positions in the Senior Execu23 tive Service (within the meaning of section 

24 3132(a)(7) of title 5, United States Code). 


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1 (b) TIMING OF TRANSFERS AND POSITION ASSIGN2 MENTS.—Each employee to be transferred under this sec3 tion shall— 

4 (1) be transferred not later than 90 days after 

5 the designated transfer date; and 

6 (2) receive notice of his or her position assign7 ment not later than 120 days after the effective date 

8 of his or her transfer. 

9 (c) TRANSFER OF FUNCTION.— 

10 (1) IN GENERAL.—Notwithstanding any other 

11 provision of law, the transfer of employees shall be 

12 deemed a transfer of functions for the purpose of 

13 section 3503 of title 5, United States Code. 

14 (2) PRIORITY OF THIS TITLE.—If any provi15 sions of this title conflict with any protection pro16 vided to transferred employees under section 3503 of 

17 title 5, United States Code, the provisions of this 

18 title shall control. 

19 (d) EQUAL STATUS AND TENURE POSITIONS.— 

20 (1) EMPLOYEES TRANSFERRED FROM FDIC, 

21 FTC, NCUA, OCC, AND OTS.—Each employee trans22 ferred from the Federal Deposit Insurance Corpora23 tion, the Federal Trade Commission, the National 

24 Credit Union Administration, the Office of the 

25 Comptroller of the Currency, or the Office of Thrift 


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1 Supervision shall be placed in a position at the 

2 Agency with the same status and tenure as he or she 

3 held on the day before the designated transfer date. 

4 (2) EMPLOYEES TRANSFERRED FROM THE

5 FEDERAL RESERVE SYSTEM.— 

6 (A) COMPARABILITY.—Each employee 

7 transferred from the Board of Governors or 

8 from a Federal reserve bank shall be placed in 

9 a position with the same status and tenure as 

10 that of employees transferring to the Agency 

11 from the Office of the Comptroller of the Cur12 rency who perform similar functions and have 

13 similar periods of service. 

14 (B) SERVICE PERIODS CREDITED.—For 

15 purposes of this paragraph, periods of service 

16 with the Board of Governors or a Federal re17 serve bank shall be credited as periods of serv18 ice with a Federal agency. 

19 (e) ADDITIONAL CERTIFICATION REQUIREMENTS

20 LIMITED.—Examiners transferred to the Agency shall not 

21 be subject to any additional certification requirements be22 fore being placed in a comparable examiner’s position at 

23 the Agency examining the same types of institutions as 

24 they examined before they were transferred. 

25 (f) PERSONNEL ACTIONS LIMITED.— 


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1 (1) 1-YEAR PROTECTION.—Except as provided 

2 in paragraph (2), each transferred employee holding 

3 a permanent position on the day before the des4 ignated transfer date shall not, during the 1-year pe5 riod beginning on the designated transfer date, be 

6 involuntarily separated, or involuntarily reassigned 

7 outside his or her local locality pay area as defined 

8 by the Office of Personnel Management. 

9 (2) EXCEPTIONS.—Paragraph (1) shall not be 

10 construed as limiting the right of the Agency to— 

11 (A) separate an employee for cause or for 

12 unacceptable performance; 

13 (B) terminate an appointment to a position 

14 excepted from the competitive service because of 

15 its confidential policy-making, policy-deter16 mining, or policy-advocating character; or 

17 (C) reassign a supervisory employee out18 side his or her locality pay area as defined by 

19 the Office of Personnel Management when the 

20 Agency determines that the reassignment is 

21 necessary for the efficient operation of the 

22 Agency. 

23 (g) PAY.— 

24 (1) 1-YEAR PROTECTION.—Except as provided 

25 in paragraph (2), each transferred employee shall, 


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1 during the 1-year period beginning on the des2 ignated transfer date, receive pay at a rate not less 

3 than the basic rate of pay (including any geographic 

4 differential) that the employee received during the 1- 

5 year period immediately before the transfer. 

6 (2) EXCEPTIONS.—Paragraph (1) shall not be 

7 construed as limiting the right of the Agency to re8 duce the rate of basic pay of a transferred em9 ployee— 

10 (A) for cause; 

11 (B) for unacceptable performance; or 

12 (C) with the employee’s consent. 

13 (3) PROTECTION ONLY WHILE EMPLOYED.— 

14 Paragraph (1) applies to a transferred employee 

15 only while that employee remains employed by the 

16 Agency. 

17 (4) PAY INCREASES PERMITTED.—Paragraph 

18 (1) shall not be construed as limiting the authority 

19 of the Agency to increase a transferred employee’s 

20 pay. 

21 (h) REORGANIZATION.— 

22 (1) BETWEEN 1ST AND 3RD YEAR.— 

23 (A) IN GENERAL.—If the Agency deter24 mines, during the period beginning 1 year after 

25 the designated transfer date and ending 3 years 


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1 after the designated transfer date, that a reor2 ganization of the staff of the Agency is re3 quired— 

4 (i) that reorganization shall be 

5 deemed a ‘‘major reorganization’’ for pur6 poses of affording affected employees re7 tirement under section 8336(d)(2) or 

8 8414(b)(1)(B) of title 5, United States 

9 Code; 

10 (ii) before the reorganization occurs, 

11 all employees in the same locality pay area 

12 as defined by the Office of Personnel Man13 agement shall be placed in a uniform posi14 tion classification system; and 

15 (iii) any resulting reduction in force 

16 shall be governed by the provisions of 

17 chapter 35 of title 5, United States Code, 

18 except that the Agency shall— 

19 (I) establish competitive areas 

20 (as that term is defined in regulations 

21 issued by the Office of Personnel 

22 Management) to include at a min23 imum all employees in the same local24 ity pay area as defined by the Office 

25 of Personnel Management; 


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1 (II) establish competitive levels 

2 (as that term is defined in regulations 

3 issued by the Office of Personnel 

4 Management) without regard to 

5 whether the particular employees have 

6 been appointed to positions in the 

7 competitive service or the excepted 

8 service; and 

9 (III) afford employees appointed 

10 to positions in the excepted service 

11 (other than to a position excepted 

12 from the competitive service because 

13 of its confidential policy-making, pol14 icy-determining, or policy-advocating 

15 character) the same assignment rights 

16 to positions within the Agency as em17 ployees appointed to positions in the 

18 competitive service. 

19 (B) SERVICE CREDIT FOR REDUCTIONS IN

20 FORCE.—For purposes of this paragraph, peri21 ods of service with a Federal home loan bank, 

22 a joint office of the Federal home loan banks, 

23 the Board of Governors, a Federal reserve 

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1 tion shall be credited as periods of service with 

2 a Federal agency. 

3 (2) AFTER 3RD YEAR.— 

4 (A) IN GENERAL.—If the Agency deter5 mines, at any time after the 3-year period be6 ginning on the designated transfer date, that a 

7 reorganization of the staff of the Agency is re8 quired, any resulting reduction in force shall be 

9 governed by the provisions of chapter 35 of title 

10 5, United States Code, except that the Agency 

11 shall establish competitive levels (as that term 

12 is defined in regulations issued by the Office of 

13 Personnel Management) without regard to 

14 types of appointment held by particular employ15 ees transferred under this section. 

16 (B) SERVICE CREDIT FOR REDUCTIONS IN

17 FORCE.—For purposes of this paragraph, peri18 ods of service with a Federal home loan bank, 

19 a joint office of the Federal home loan banks, 

20 the Board of Governors, a Federal reserve 

21 bank, the Federal Deposit Insurance Corpora22 tion, or the National Credit Union Administra23 tion shall be credited as periods of service with 

24 a Federal agency. 

25 (i) BENEFITS.— 


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1 (1) RETIREMENT BENEFITS FOR TRANSFERRED

2 EMPLOYEES.— 

3 (A) IN GENERAL.— 

4 (i) CONTINUATION OF EXISTING RE5 TIREMENT PLAN.—Except as provided in 

6 subparagraph (B), each transferred em7 ployee shall remain enrolled in his or her 

8 existing retirement plan as long as he or 

9 she remains employed by the Agency. 

10 (ii) EMPLOYER’S CONTRIBUTION.— 

11 The Agency shall pay any employer con12 tributions to the existing retirement plan 

13 of each transferred employee as required 

14 under that plan. 

15 (B) OPTION FOR EMPLOYEES TRANS16 FERRED FROM FEDERAL RESERVE SYSTEM TO

17 BE SUBJECT TO FEDERAL EMPLOYEE RETIRE18 MENT PROGRAM.— 

19 (i) ELECTION.—Any transferred em20 ployee who was enrolled in a Federal Re21 serve System retirement plan on the day 

22 before his or her transfer to the Agency 

23 may, during the period beginning 6 months 

24 after the designated transfer date and end25 ing 1 year after the designated transfer 


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1 date, elect to be subject to the Federal em2 ployee retirement program. 

3 (ii) EFFECTIVE DATE OF COV4 ERAGE.—For any employee making an 

5 election under clause (i), coverage by the 

6 Federal employee retirement program shall 

7 begin 1 year after the designated transfer 

8 date. 

9 (C) AGENCY PARTICIPATION IN FEDERAL

10 RESERVE SYSTEM RETIREMENT PLAN.— 

11 (i) SEPARATE ACCOUNT IN FEDERAL

12 RESERVE SYSTEM RETIREMENT PLAN ES13 TABLISHED.—A separate account in the 

14 Federal Reserve System retirement plan 

15 shall be established for Agency employees 

16 who do not make the election under sub17 paragraph (B). 

18 (ii) FUNDS ATTRIBUTABLE TO TRANS19 FERRED EMPLOYEES REMAINING IN FED20 ERAL RESERVE SYSTEM RETIREMENT

21 PLAN TRANSFERRED.—The proportionate 

22 share of funds in the Federal Reserve Sys23 tem retirement plan, including the propor24 tionate share of any funding surplus in 

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1 ployee who does not make the election 

2 under subparagraph (B), shall be trans3 ferred to the account established under 

4 clause (i). 

5 (iii) EMPLOYER CONTRIBUTIONS DE6 POSITED.—The Agency shall deposit into 

7 the account established under clause (i) 

8 the employer contributions that the Agency 

9 makes on behalf of employees who do not 

10 make the election under subparagraph (B). 

11 (iv) ACCOUNT ADMINISTRATION.—The 

12 Agency shall administer the account estab13 lished under clause (i) as a participating 

14 employer in the Federal Reserve System 

15 retirement plan. 

16 (D) DEFINITIONS.—For purposes of this 

17 paragraph, the following definitions shall apply: 

18 (i) EXISTING RETIREMENT PLAN.— 

19 The term ‘‘existing retirement plan’’ 

20 means, with respect to any employee trans21 ferred under this section, the particular re22 tirement plan (including the Financial In23 stitutions Retirement Fund) and any asso24 ciated thrift savings plan of the agency or 

25 Federal reserve bank from which the emVerDate Nov 24 2008 22:09 Jul 09, 2009 Jkt 079200 PO 00000 Frm 00141 Fmt 6652 Sfmt 6201 E:\BILLS\H3126.IH H3126

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1 ployee was transferred, which the employee 

2 was enrolled in on the day before the des3 ignated transfer date. 

4 (ii) FEDERAL EMPLOYEE RETIRE5 MENT PLAN.—The term ‘‘Federal employee 

6 retirement program’’ means the retirement 

7 program for Federal employees established 

8 by chapters 83 and 84 of title 5, United 

9 States Code. 

10 (2) BENEFITS OTHER THAN RETIREMENT BEN11 EFITS FOR TRANSFERRED EMPLOYEES.— 

12 (A) DURING 1ST YEAR.— 

13 (i) EXISTING PLANS CONTINUE.— 

14 Each transferred employee may, for 1 year 

15 after the designated transfer date, retain 

16 membership in any other employee benefit 

17 program of the agency or bank from which 

18 the employee transferred, including a den19 tal, vision, long-term care, or life insurance 

20 program, to which the employee belonged 

21 on the day before the designated transfer 

22 date. 

23 (ii) EMPLOYER’S CONTRIBUTION.— 

24 The Agency shall reimburse the agency or 

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1 ferred for any cost incurred by that agency 

2 or bank in continuing to extend coverage 

3 in the benefit program to the employee as 

4 required under that program or negotiated 

5 agreements. 

6 (B) DENTAL, VISION, OR LIFE INSURANCE

7 AFTER 1ST YEAR.—If, after the 1-year period 

8 beginning on the designated transfer date, the 

9 Agency decides not to continue participation in 

10 any dental, vision, or life insurance program of 

11 an agency or bank from which employees trans12 ferred, a transferred employee who is a member 

13 of such a program may, before the Agency’s de14 cision takes effect, elect to enroll, without re15 gard to any regularly scheduled open season, 

16 in— 

17 (i) the enhanced dental benefits estab18 lished by chapter 89A of title 5, United 

19 States Code; 

20 (ii) the enhanced vision benefits estab21 lished by chapter 89B of title 5, United 

22 States Code; and 

23 (iii) the Federal Employees Group 

24 Life Insurance Program established by 

25 chapter 87 of title 5, United States Code, 


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1 without regard to any requirement of in2 surability. 

3 (C) LONG-TERM CARE INSURANCE AFTER

4 1ST YEAR.—If, after the 1-year period begin5 ning on the designated transfer date, the Agen6 cy decides not to continue participation in any 

7 long-term care insurance program of an agency 

8 or bank from which employees transferred, a 

9 transferred employee who is a member of such 

10 a program may, before the Agency’s decision 

11 takes effect, elect to apply for coverage under 

12 the Federal Long Term Care Insurance Pro13 gram established by chapter 90 of title 5, 

14 United States Code, under the underwriting re15 quirements applicable to a new active workforce 

16 member (as defined in Part 875, title 5, Code 

17 of Federal Regulations). 

18 (D) EMPLOYEE’S CONTRIBUTION.—An in19 dividual enrolled in the Federal Employees 

20 Health Benefits program shall pay any em21 ployee contribution required by the plan. 

22 (E) ADDITIONAL FUNDING.—The Agency 

23 shall transfer to the Federal Employees Health 

24 Benefits Fund established under section 8909 

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1 mined by the Director of the Office of Per2 sonnel Management, after consultation with the 

3 Agency and the Office of Management and 

4 Budget, to be necessary to reimburse the Fund 

5 for the cost to the Fund of providing benefits 

6 under this subparagraph. 

7 (F) CREDIT FOR TIME ENROLLED IN

8 OTHER PLANS.—For employees transferred 

9 under this section, enrollment in a health bene10 fits plan administered by the Office of the 

11 Comptroller of the Currency, the Office of 

12 Thrift Supervision, the Federal Deposit Insur13 ance Corporation, the National Credit Union 

14 Administration, the Board of Governors, or a 

15 Federal reserve bank, immediately before enroll16 ment in a health benefits plan under chapter 89 

17 of title 5, United States Code, shall be consid18 ered as enrollment in a health benefits plan 

19 under that chapter for purposes of section 

20 8905(b)(1)(A) of title 5, United States Code. 

21 (E) SPECIAL PROVISIONS TO ENSURE CON22 TINUATION OF LIFE INSURANCE BENEFITS.— 

23 (i) IN GENERAL.—An annuitant (as 

24 defined in section 8901(3) of title 5, 

25 United States Code) who is enrolled in a 


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1 life insurance plan administered by the 

2 Board of Governors of the Federal Reserve 

3 System, the Federal Deposit Insurance 

4 Corporation, the Federal Trade Commis5 sion, the National Credit Union Adminis6 tration, the Office of the Comptroller of 

7 the Currency, or the Office of Thrift Su8 pervision on the day before the designated 

9 transfer date shall be eligible for coverage 

10 by a life insurance plan under sections 

11 8706(b), 8714a, 8714b, and 8714c of title 

12 5, United States Code, or in a life insur13 ance plan established by the Agency, with14 out regard to any regularly scheduled open 

15 season and requirement of insurability. 

16 (ii) EMPLOYEE’S CONTRIBUTION.—An 

17 individual enrolled in a life insurance plan 

18 under this clause shall pay any employee 

19 contribution required by the plan. 

20 (iii) ADDITIONAL FUNDING.—The 

21 Agency shall transfer to the Employees’ 

22 Life Insurance Fund established under sec23 tion 8714 of title 5, United States Code, 

24 an amount determined by the Director of 

25 the Office of Personnel Management, after 


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1 consultation with the Agency and the Of2 fice of Management and Budget, to be nec3 essary to reimburse the Fund for the cost 

4 to the Fund of providing benefits under 

5 this subparagraph not otherwise paid for 

6 by the employee under clause (ii). 

7 (iv) CREDIT FOR TIME ENROLLED IN

8 OTHER PLANS.—For employees transferred 

9 under this section, enrollment in a life in10 surance plan administered by the Board of 

11 Governors, the Federal Deposit Insurance 

12 Corporation, the Federal Trade Commis13 sion, the National Credit Union Adminis14 tration, the Office of the Comptroller of 

15 the Currency, the Office of Thrift Super16 vision, or a Federal reserve bank imme17 diately before enrollment in a life insur18 ance plan under chapter 87 of title 5, 

19 United States Code, shall be considered as 

20 enrollment in a life insurance plan under 

21 that chapter for purposes of section 

22 8706(b)(1)(A) of title 5, United States 

23 Code. 

24 (j) IMPLEMENTATION OF UNIFORM PAY AND CLASSI25 FICATION SYSTEM.—Not later than 2 years after the desVerDate Nov 24 2008 22:09 Jul 09, 2009 Jkt 079200 PO 00000 Frm 00147 Fmt 6652 Sfmt 6201 E:\BILLS\H3126.IH H3126

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1 ignated transfer date, the Agency shall implement a uni2 form pay and classification system for all transferred em3 ployees. 

4 (k) EQUITABLE TREATMENT.—In administering the 

5 provisions of this section, the Agency— 

6 (1) shall take no action that would unfairly dis7 advantage transferred employees relative to each 

8 other based on their prior employment by the Board 

9 of Governors, the Federal Deposit Insurance Cor10 poration, the Federal Trade Commission, the Na11 tional Credit Union Administration, the Office of the 

12 Comptroller of the Currency, the Office of Thrift 

13 Supervision, a Federal reserve bank, a Federal home 

14 loan bank, or a joint office of the Federal home loan 

15 banks; and 

16 (2) may take such action as is appropriate in 

17 individual cases so that employees transferred under 

18 this section receive equitable treatment, with respect 

19 to those employees’ status, tenure, pay, benefits 

20 (other than benefits under programs administered by 

21 the Office of Personnel Management), and accrued 

22 leave or vacation time, for prior periods of service 

23 with any Federal agency, including the Board of 

24 Governors of the Federal Reserve System, the Fed25 eral Deposit Insurance Corporation, the Federal 


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1 Trade Commission, the National Credit Union Ad2 ministration, the Office of the Comptroller of the 

3 Currency, the Office of Thrift Supervision, a Federal 

4 reserve bank, a Federal home loan bank, or a joint 

5 office of the Federal home loan banks. 

6 (l) NO PRIVATE RIGHT OF ACTION.—This section 

7 shall not be construed as providing any transferred em8 ployee with any right of action to require the Agency or 

9 any officer or employee of the Agency to take any action 

10 under this section. 

11 (m) IMPLEMENTATION.—In implementing the provi12 sions of this section, the Agency shall work with the Office 

13 of Personnel Management and other entities with exper14 tise in matters related to employment to ensure a fair and 

15 orderly transition for affected employees. 

16 SEC. 165. INCIDENTAL TRANSFERS. 

17 (a) INCIDENTAL TRANSFERS AUTHORIZED.—The Di18 rector of the Office of Management and Budget, in con19 sultation with the Secretary, shall make such additional 

20 incidental transfers and dispositions of assets and liabil21 ities held, used, arising from, available, or to be made 

22 available, in connection with the functions transferred by 

23 this title, as the Director may determine necessary to ac24 complish the purposes of this title. 


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1 (b) SUNSET.—The authority provided in this section 

2 shall terminate 5 years after the date of the enactment 

3 of this Act. 

4 SEC. 166. INTERIM AUTHORITY OF THE SECRETARY. 

5 (a) IN GENERAL.—The Secretary is authorized to 

6 perform the functions of the Agency under this subtitle 

7 until 3 of the appointed Board members are confirmed 

8 by the Senate in accordance with section 112. 

9 (b) INTERIM ADMINISTRATIVE SERVICES BY THE

10 DEPARTMENT OF THE TREASURY.—The Department of 

11 the Treasury may provide administrative services nec12 essary to support the Agency before the designated trans13 fer date. 

14 (c) INTERIM FUNDING FOR THE DEPARTMENT OF

15 THE TREASURY.—For the purposes of carrying out the 

16 authorities granted in this section, there are appropriated 

17 to the Department of the Treasury such sums as are nec18 essary. Notwithstanding any other provision of law, such 

19 amounts shall be subject to apportionment under section 

20 1517 of title 31, United States Code, and restrictions that 

21 generally apply to the use of appropriated funds in title 

22 31, United States Code, and other laws. 


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1 Subtitle G—Regulatory 

2 Improvements 

3 SEC. 171. COLLECTION OF DEPOSIT ACCOUNT DATA. 

4 (a) PURPOSE.—The purpose of this section is to pro5 mote awareness and understanding of the access of indi6 viduals and communities to financial services, and to iden7 tify business and community development needs and op8 portunities. 

9 (b) IN GENERAL.— 

10 (1) RECORDS REQUIRED.—For each branch, 

11 automated teller machine at which deposits are ac12 cepted, and other deposit taking service facility with 

13 respect to any financial institution, the financial in14 stitution shall maintain records of the number and 

15 dollar amounts of deposit accounts of customers. 

16 (2) GEO-CODED ADDRESSES OF DEPOSITORS.— 

17 The customers’ addresses maintained pursuant to 

18 paragraph (1) shall be geo-coded so that data shall 

19 be collected regarding the census tracts of the resi20 dence or business location of the customers. 

21 (3) IDENTIFICATION OF DEPOSITOR TYPE.—In 

22 maintaining records on any deposit account under 

23 this section, the financial institution shall also 

24 record whether the deposit account is for a residen25 tial or commercial customer. 


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1 (4) PUBLIC AVAILABILITY.— 

2 (A) IN GENERAL.—The following informa3 tion shall be publicly available on an annual 

4 basis— 

5 (i) the address and census tracts of 

6 each branch, automated teller machine at 

7 which deposits are accepted, and other de8 posit taking service facility with respect to 

9 any financial institution; 

10 (ii) the type of deposit account includ11 ing whether the account was a checking or 

12 savings account; and 

13 (iii) data on the number and dollar 

14 amounts of the accounts, presented by cen15 sus tract location of the residential and 

16 commercial customers. 

17 (B) PROTECTION OF IDENTITY.—In the 

18 publicly available data, any personally identifi19 able data element shall be removed so as to pro20 tect the identities of the commercial and resi21 dential customers. 

22 (c) AVAILABILITY OF INFORMATION.— 

23 (1) SUBMISSION TO AGENCIES.—The data re24 quired to be compiled and maintained under this 

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1 mitted annually to the Agency, or to a Federal bank2 ing agency, in accordance with rules prescribed by 

3 the Agency. 

4 (2) AVAILABILITY OF INFORMATION.—Informa5 tion compiled and maintained under this section 

6 shall be retained for not less than 3 years after the 

7 date of preparation and shall be made available to 

8 the public, upon request, in the form required under 

9 rules prescribed by the Agency. 

10 (d) AGENCY USE.—The Agency— 

11 (1) shall assess the distribution of residential 

12 and commercial accounts at such financial institu13 tion across income and minority level of census 

14 tracts; and 

15 (2) may use the data for any other purpose as 

16 permitted by law. 

17 (e) REGULATIONS AND GUIDANCE.— 

18 (1) IN GENERAL.—The Agency shall prescribe 

19 such regulations and issue guidance as may be nec20 essary to carry out, enforce, and compile data pursu21 ant to this section. 

22 (2) DATA COMPILATION REGULATIONS.—The 

23 Agency shall prescribe regulations regarding the pro24 vision of data compiled under this section to the 

25 Federal banking agencies to carry out the purposes 


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1 of this section and shall issue guidance to financial 

2 institutions regarding measures to facilitate compli3 ance with the this section and the requirements of 

4 regulations prescribed under this section. 

5 (f) DEFINITIONS.—For purposes of this section, the 

6 following definitions shall apply: 

7 (1) AGENCY.—The term ‘‘Agency’’ means the 

8 Consumer Financial Protection Agency. 

9 (2) CREDIT UNION.—The term ‘‘credit union’’ 

10 means a Federal credit union or a State-chartered 

11 credit union (as such terms are defined in section 

12 101 of the Federal Credit Union Act). 

13 (3) DEPOSIT ACCOUNT.—The term ‘‘deposit ac14 count’’ includes any checking account, savings ac15 count, credit union share account, and other type of 

16 account as defined by the Agency. 

17 (4) FEDERAL BANKING AGENCY.—The term 

18 ‘‘Federal banking agency’’ means the Board of Gov19 ernors of the Federal Reserve System, the head of 

20 the agency responsible for chartering and regulating 

21 national banks, the Director of the Office of Thrift 

22 Supervision, the Federal Deposit Insurance Corpora23 tion, and the National Credit Union Administration; 

24 and the term ‘‘Federal banking agencies’’ means all 

25 of those agencies. 


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1 (5) FINANCIAL INSTITUTION.—The term ‘‘fi2 nancial institution’’— 

3 (A) has the meaning given to the term ‘‘in4 sured depository institution’’ in section 3(c)(2) 

5 of the Federal Deposit Insurance Act; and 

6 (B) includes any credit union. 

7 (g) EFFECTIVE DATE.—This section shall take effect 

8 on the designated transfer date. 

9 SEC. 172. SMALL BUSINESS DATA COLLECTION. 

10 (a) IN GENERAL.—The Equal Credit Opportunity 

11 Act (15 U.S.C. 1691 et seq.) is amended by inserting after 

12 section 704A the following new section: 

13 ‘‘§ 704B. Small business loan data collection 

14 ‘‘(a) PURPOSE.—The purpose of this section is to fa15 cilitate enforcement of fair lending laws and enable com16 munities, governmental entities, and creditors to identify 

17 business and community development needs and opportu18 nities of women- and minority-owned small businesses. 

19 ‘‘(b) IN GENERAL.—Subject to the requirements of 

20 this section, in the case of any application to a financial 

21 institution for credit for a small business, the financial in22 stitution shall— 

23 ‘‘(1) inquire whether the business is a women24 or minority-owned business, without regard to 

25 whether such application is received in person, by 


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1 mail, by telephone, by electronic mail or other form 

2 of electronic transmission, or by any other means 

3 and whether or not such application is in response 

4 to a solicitation by the financial institution; and 

5 ‘‘(2) maintain a record of the responses to such 

6 inquiry separate from the application and accom7 panying information. 

8 ‘‘(c) RIGHT TO REFUSE.—Any applicant for credit 

9 may refuse to provide any information requested pursuant 

10 to subsection (b) in connection with any application for 

11 credit. 

12 ‘‘(d) NO ACCESS BY UNDERWRITERS.— 

13 ‘‘(1) IN GENERAL.—Where feasible, no loan un14 derwriter or other officer or employee of a financial 

15 institution, or any affiliate of a financial institution, 

16 involved in making any determination concerning an 

17 application for credit shall have access to any infor18 mation provided by the applicant pursuant to a re19 quest under subsection (b) in connection with such 

20 application. 

21 ‘‘(2) EXCEPTION.—If a financial institution de22 termines that loan underwriter or other officer or 

23 employee of a financial institution, or any affiliate of 

24 a financial institution, involved in making any deter25 mination concerning an application for credit should 


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1 have access to any information provided by the ap2 plicant pursuant to a request under subsection (b), 

3 the financial institution will provide notice to the ap4 plicant of the access of the underwriter to this infor5 mation, along with notice that the financial institu6 tion may not discriminate on this basis of this infor7 mation. 

8 ‘‘(e) FORM AND MANNER OF INFORMATION.— 

9 ‘‘(1) IN GENERAL.—Each financial institution 

10 shall compile and maintain, in accordance with regu11 lations of the Agency, a record of the information 

12 provided by any loan applicant pursuant to a request 

13 under subsection (b). 

14 ‘‘(2) ITEMIZATION.—Information compiled and 

15 maintained under paragraph (1) shall also be 

16 itemized in order to clearly and conspicuously dis17 close the following: 

18 ‘‘(A) The number of the application and 

19 the date the application was received. 

20 ‘‘(B) The type and purpose of the loan or 

21 other credit being applied for. 

22 ‘‘(C) The amount of the credit or credit 

23 limit applied for and the amount of the credit 

24 transaction or the credit limit approved for such 

25 applicant. 


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1 ‘‘(D) The type of action taken with respect 

2 to such application and the date of such action. 

3 ‘‘(E) The census tract in which is located 

4 the principal place of business of the small busi5 ness loan applicant. 

6 ‘‘(F) The gross annual revenue of the busi7 ness in the last fiscal year of the small business 

8 loan applicant preceding the date of the appli9 cation. 

10 ‘‘(G) The race and ethnicity of the prin11 cipal owners of the business. 

12 ‘‘(H) Any additional data the Agency de13 termines would aid in fulfilling the purposes of 

14 this section. 

15 ‘‘(3) INCLUSION OF PERSONALLY IDENTIFIABLE

16 INFORMATION PROHIBITED.—In compiling and 

17 maintaining any record of information under this 

18 section, a financial institution may not include in 

19 such record the name, specific address (other than 

20 the census tract required under paragraph (1)(E)), 

21 telephone number, electronic mail address, and any 

22 other personally identifiable information concerning 

23 any individual who is, or is connected with, the small 

24 business loan applicant. 


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1 ‘‘(4) DISCRETION TO DELETE OR MODIFY PUB2 LICLY AVAILABLE DATA.—The Agency may, in the 

3 discretion of the Agency, delete or modify data col4 lected under this section which is or will be available 

5 to the public if the Agency determines that the dele6 tion or modification of the data would advance a 

7 compelling privacy interest. 

8 ‘‘(f) AVAILABILITY OF INFORMATION.— 

9 ‘‘(1) SUBMISSION TO AGENCY.—The data re10 quired to be compiled and maintained under this 

11 section by any financial institution shall be sub12 mitted annually to the Agency. 

13 ‘‘(2) AVAILABILITY OF INFORMATION.— 

14 ‘‘(A) IN GENERAL.—Information compiled 

15 and maintained under this section shall be re16 tained for not less than 3 years after the date 

17 of preparation and shall be made available to 

18 the public, upon request, in the form required 

19 under regulations prescribed by the Agency. 

20 ‘‘(B) ANNUAL DISCLOSURE TO THE PUB21 LIC.—In addition to the availability by request 

22 under subparagraph (A) of data compiled and 

23 maintained under this section, the Agency shall 

24 annually provide such data to the public. 


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1 ‘‘(C) PROCEDURES.—The procedures for 

2 disclosing data compiled and maintained under 

3 this section to the public shall be determined by 

4 the Agency by regulation. 

5 ‘‘(3) COMPILATION OF AGGREGATE DATA.— 

6 ‘‘(A) IN GENERAL.—The Agency may, in 

7 the discretion of the Agency, compile for the 

8 Agency’s own use compilations of aggregate 

9 data. 

10 ‘‘(B) PUBLIC AVAILABILITY OF AGGRE11 GATE DATA.—The Agency may, in the discre12 tion of the Agency, make public compilations of 

13 aggregate data in such manner as the Agency 

14 may determine to be appropriate. 

15 ‘‘(g) DEFINITIONS.—For purposes of this section, the 

16 following definitions shall apply: 

17 ‘‘(1) FINANCIAL INSTITUTION.—The term ‘fi18 nancial institution’ means any partnership, com19 pany, corporation, association (incorporated or unin20 corporated), trust, estate, cooperative organization, 

21 or other entity that engages in any financial activity. 

22 ‘‘(2) MINORITY-OWNED BUSINESS.—The term 

23 ‘minority-owned business’ means a business— 


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1 ‘‘(A) more than 50 percent of the owner2 ship or control of which is held by 1 or more 

3 minority individuals; and 

4 ‘‘(B) more than 50 percent of the net prof5 it or loss of which accrues to 1 or more minor6 ity individuals. 

7 ‘‘(3) WOMEN-OWNED BUSINESS.—The term 

8 ‘women-owned business’ means a business— 

9 ‘‘(A) more than 50 percent of the owner10 ship or control of which is held by 1 or more 

11 women; and 

12 ‘‘(B) more than 50 percent of the net prof13 it or loss of which accrues to 1 or more women. 

14 ‘‘(4) MINORITY.—The term ‘minority’ has the 

15 meaning given to such term by section 1204(c)(3) of 

16 the Financial Institutions Reform, Recovery, and 

17 Enforcement Act of 1989. 

18 ‘‘(5) SMALL BUSINESS LOAN.—The term ‘small 

19 business loan’ shall be defined by the Agency, which 

20 may take into account— 

21 ‘‘(A) the gross revenues of the borrower; 

22 ‘‘(B) the total number of employees of the 

23 borrower; 

24 ‘‘(C) the industry in which the borrower 

25 has its primary operations; and 


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1 ‘‘(D) the size of the loan. 

2 ‘‘(h) AGENCY ACTION.— 

3 ‘‘(1) IN GENERAL.—The Agency shall prescribe 

4 such regulations and issue such guidance as may be 

5 necessary to carry out, enforce, and compile data 

6 pursuant to this section. 

7 ‘‘(2) EXCEPTIONS.—The Agency, by regulation 

8 or order, may adopt exceptions to any requirement 

9 of this section and may, conditionally or uncondi10 tionally, exempt any financial institution or class of 

11 institutions from the requirements of this section as 

12 the Agency determines to be necessary or appro13 priate to carry out the purposes and objectives of 

14 this section. 

15 ‘‘(3) GUIDANCE.—The Agency shall issue guid16 ance designed to facilitate compliance with the re17 quirements of this section, including assisting finan18 cial institutions in working with applicants to deter19 mine whether the applicants are women- or minor20 ity-owned for the purposes of this section.’ ’’’. 

21 (b) TECHNICAL AND CONFORMING AMENDMENT.— 

22 Section 701(b) of the Equal Credit Opportunity Act (15 

23 U.S.C. 1691(b)) is amended— 

24 (1) by striking ‘‘or’’ after the semicolon at the 

25 end of paragraph (3); 


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1 (2) by striking the period at the end of para2 graph (4) and inserting ‘‘; or’’; and 

3 (3) by inserting after paragraph (4), the fol4 lowing new paragraph: 

5 ‘‘(5) to make an inquiry under section 704B in 

6 accordance with the requirements of such section.’’. 

7 (c) CLERICAL AMENDMENT.—The table of sections 

8 for title VII of the Consumer Credit Protection Act is 

9 amended by inserting after the item relating to section 

10 704A the following new item: 

‘‘704B. Small business loan data collection.’’. 

11 (d) EFFECTIVE DATE.—This section shall take effect 

12 on the designated transfer date. 

13 Subtitle H—Conforming 

14 Amendments 

15 SEC. 181. AMENDMENTS TO THE INSPECTOR GENERAL ACT 

16 OF 1978. 

17 (a) ESTABLISHMENT.—Section 8G(a)(2) of the In18 spector General Act of 1978 (5 U.S.C. App. 3, 8G(a)(2)) 

19 is amended by inserting ‘‘the Consumer Financial Protec20 tion Agency,’’ before ‘‘the Consumer Product Safety Com21 mission,’’. 

22 (b) EFFECTIVE DATE.—This section shall take effect 

23 on the date of the enactment of this Act. 


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1 SEC. 182. AMENDMENTS TO THE PRIVACY ACT OF 1974. 

2 (a) APPLICABILITY.—Section 552a of title 5, United 

3 States Code, is amended by adding at the end the fol4 lowing new subsection: 

5 ‘‘(w) APPLICABILITY TO CONSUMER FINANCIAL PRO6 TECTION AGENCY.—Except as provided in the Consumer 

7 Financial Protection Agency Act of 2009, this section 

8 shall apply with respect to the Consumer Financial Protec9 tion Agency.’’. 

10 (b) EFFECTIVE DATE.—This section shall take effect 

11 on the date of the enactment of this Act. 

12 SEC. 183. AMENDMENTS TO THE ALTERNATIVE MORTGAGE 

13 TRANSACTION PARITY ACT OF 1982. 

14 (a) SECTION 803(1).—Section 803(1) of the Alter15 native Mortgage Transaction Parity Act of 1982 (12 

16 U.S.C. 3802(1)) is amended by striking paragraphs (B) 

17 and (C). 

18 (b) SECTION 804(a).—Section 804(a) of the Alter19 native Mortgage Transaction Parity Act of l982 (12 

20 U.S.C. 3803(a)) is amended— 

21 (1) in paragraphs (1), (2), and (3), by inserting 

22 ‘‘on or before the designated transfer date, as deter23 mined in section 1062 of the Consumer Financial 

24 Protection Agency Act of 2009’’ after ‘‘transactions 

25 made’’ each place such term appears; 


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1 (2) in paragraph (2), by striking ‘‘and’’ at the 

2 end; 

3 (3) in paragraph (3), by striking the period at 

4 the end and inserting ‘‘; and’’; and 

5 (4) by adding at the end the following new 

6 paragraph: 

7 ‘‘(4) with respect to transactions made after the 

8 designated transfer date, as determined in section 

9 1062 of the Consumer Financial Protection Agency 

10 Act of 2009, only in accordance with regulations 

11 governing alternative mortgage transactions as 

12 issued by the Consumer Financial Protection Agency 

13 for federally chartered housing creditors, in accord14 ance with the rulemaking authority granted to the 

15 Consumer Financial Protection Agency with regard 

16 to federally chartered housing creditors under laws 

17 other than this section.’’. 

18 (c) SECTION 804.—Section 804 of the Alternative 

19 Mortgage Transaction Parity Act of l982 (12 U.S.C. 

20 3803) is amended— 

21 (1) by striking subsection (c) and inserting the 

22 following new subsection: 

23 ‘‘(c) EFFECT OF STATE LAW.— 

24 ‘‘(1) IN GENERAL.—An alternative mortgage 

25 transaction may be made by a housing creditor in 


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1 accordance with this section, notwithstanding any 

2 State Constitution, law, or regulation that prohibits 

3 an alternative mortgage transaction. 

4 ‘‘(2) RULE OF CONSTRUCTION.—For purposes 

5 of this subsection, a State Constitution, law, or reg6 ulation that prohibits an alternative mortgage trans7 action does not include any State Constitution, law, 

8 or regulation that regulates mortgage transactions 

9 generally, including any restriction on prepayment 

10 penalties or late charges.’’; and 

11 (2) by adding at the end the following new sub12 section: 

13 ‘‘(d) DUTIES OF CONSUMER FINANCIAL PROTECTION

14 AGENCY.—The Consumer Financial Protection Agency 

15 shall— 

16 ‘‘(1) review the regulations identified by the 

17 Comptroller of the Currency, the National Credit 

18 Union Administration, and the Director of the Office 

19 of Thrift Supervision (as those regulations exist on 

20 the designated transfer date, as determined in sec21 tion 1062 of the Consumer Financial Protection 

22 Agency Act of 2009) as applicable under paragraphs 

23 (1), (2), and (3) of subsection (a); 

24 ‘‘(2) determine whether such regulations are 

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1 tives of title I of the Consumer Financial Protection 

2 Agency Act of 2009; and 

3 ‘‘(3) prescribe regulations under subsection 

4 (a)(4) after the designated transfer date, as deter5 mined under such Act.’’. 

6 (d) EFFECTIVE DATE AND SCOPE OF APPLICA7 TION.— 

8 (1) EFFECTIVE DATE.—This section shall take 

9 effect on the designated transfer date. 

10 (2) SCOPE OF APPLICATION.—The amendments 

11 made by subsection (a) shall not affect any trans12 action covered by the Alternative Mortgage Trans13 action Parity Act of l982 which is entered into on 

14 or before the designated transfer date. 

15 SEC. 184. AMENDMENTS TO THE CONSUMER CREDIT PRO16 TECTION ACT. 

17 (a) TRUTH IN LENDING ACT.— 

18 (1) SECTION 103.—Section 103 of the Truth in 

19 Lending Act (15 U.S.C. 1602) is amended by strik20 ing subsection (b) and inserting the following new 

21 subsection: 

22 ‘‘(b) AGENCY DEFINITIONS.— 

23 ‘‘(1) BOARD.—The term ‘Board’ means the 

24 ‘Board of Governors of the Federal Reserve System’. 


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1 ‘‘(2) AGENCY.—The term ‘Agency’ means the 

2 Consumer Financial Protection Agency.’’. 

3 (2) UNIVERSAL AMENDMENT RELATING TO

4 BOARD OF GOVERNORS OF THE FEDERAL RESERVE

5 SYSTEM.— 

6 (A) IN GENERAL.—Except as provided in 

7 subparagraph (B), the Truth in Lending Act 

8 (15 U.S.C. 1601 et seq.) is amended by striking 

9 ‘‘Board’’ each place such term appears, includ10 ing in chapters 4 and 5 relating to credit billing 

11 and consumer leases, and inserting ‘‘Agency’’. 

12 (B) EXCEPTIONS.—The amendment de13 scribed in subparagraph (A) shall not apply to 

14 sections 108(a) (as amended by paragraph (4)) 

15 and 140(d)) or any reference in either such sec16 tion to the term ‘‘Board’’. 

17 (3) SECTION 105.—Section 105(b) of the Truth 

18 in Lending Act (15 U.S.C. 1604(b)) is amended by 

19 striking the first sentence and inserting the fol20 lowing: ‘‘The Agency shall publish a single, inte21 grated disclosure for mortgage loan transactions, in22 cluding real estate settlement cost statements, which 

23 include the disclosure requirements of this title, in 

24 conjunction with the disclosure requirements of the 

25 Real Estate Settlement Procedures Act that, taken 


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1 together, may apply to transactions subject to both 

2 or either law. The purpose of such model disclosure 

3 shall be to facilitate compliance with the disclosure 

4 requirements of those titles, and to aid the borrower 

5 or lessee in understanding the transaction by uti6 lizing readily understandable language to simplify 

7 the technical nature of the disclosures.’’. 

8 (4) SECTION 108.—Section 108 of the Truth in 

9 Lending Act (15 U.S.C. 1607) is amended— 

10 (A) by striking subsection (a) and insert11 ing the following new subsection: 

12 ‘‘(a) ENFORCING AGENCIES.—Subject to section 

13 1022 of the Consumer Financial Protection Agency Act 

14 of 2009, compliance with the requirements imposed under 

15 this title shall be enforced as follows: 

16 ‘‘(1) Under section 8 of the Federal Deposit In17 surance Act, in the case of— 

18 ‘‘(A) national banks, and Federal branches 

19 and Federal agencies of foreign banks, by the 

20 head of the agency responsible for chartering 

21 and regulating national banks; 

22 ‘‘(B) member banks of the Federal Reserve 

23 System (other than national banks), branches 

24 and agencies of foreign banks (other than Fed25 eral branches, Federal agencies, and insured 


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1 State branches of foreign banks), commercial 

2 lending companies owned or controlled by for3 eign banks, and organizations operating under 

4 section 25 or 25(a) of the Federal Reserve Act, 

5 by the Board; 

6 ‘‘(C) depository institution insured by the 

7 Federal Deposit Insurance Corporation (other 

8 than members of the Federal Reserve System, 

9 Federal savings associations, and savings and 

10 loan holding companies) and insured State 

11 branches of foreign banks, by the Board of Di12 rectors of the Federal Deposit Insurance Cor13 poration; and 

14 ‘‘(D) Federal savings associations and sav15 ings and loan holding companies, by the Direc16 tor of the Office of Thrift Supervision. 

17 ‘‘(2) Under subtitle E of the Consumer Finan18 cial Protection Agency Act of 2009, by the Agency 

19 in the case of a covered person under that Act. 

20 ‘‘(3) Under the Federal Credit Union Act, by 

21 the head of the agency responsible for chartering 

22 and regulating Federal credit unions. 

23 ‘‘(4) Under the Federal Aviation Act of 1958, 

24 by the Secretary of Transportation with respect to 


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1 any air carrier or foreign air carrier subject to that 

2 Act. 

3 ‘‘(5) Under the Packers and Stockyards Act, 

4 1921 (except as provided in section 406 of that Act), 

5 by the Secretary of Agriculture with respect to any 

6 activities subject to that Act. 

7 ‘‘(6) Under the Farm Credit Act of 1971, by 

8 the Farm Credit Administration with respect to any 

9 Federal land bank, Federal land bank association, 

10 Federal intermediate credit bank, or production 

11 credit association.’’; and 

12 (B) by striking subsection (c) and insert13 ing the following new subsection: 

14 ‘‘(c) OVERALL ENFORCEMENT AUTHORITY OF THE

15 FEDERAL TRADE COMMISSION.—Except to the extent 

16 that enforcement of the requirements imposed under this 

17 title is specifically committed to some other Government 

18 agency under subsection (a) and subject to section 1022 

19 of the Consumer Financial Protection Agency Act of 2009, 

20 the Federal Trade Commission shall enforce such require21 ments. For the purpose of the exercise by the Federal 

22 Trade Commission of its functions and powers under the 

23 Federal Trade Commission Act, a violation of any require24 ment imposed under this title shall be deemed a violation 

25 of a requirement imposed under that Act. All of the funcVerDate Nov 24 2008 22:09 Jul 09, 2009 Jkt 079200 PO 00000 Frm 00171 Fmt 6652 Sfmt 6201 E:\BILLS\H3126.IH H3126

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1 tions and powers of the Federal Trade Commission under 

2 the Federal Trade Commission Act are available to the 

3 Commission to enforce compliance by any person with the 

4 requirements under this title, irrespective of whether that 

5 person is engaged in commerce or meets any other juris6 dictional tests in the Federal Trade Commission Act.’’. 

7 (5) UNIVERSAL AMENDMENT RELATING TO THE

8 FEDERAL TRADE COMMISSION.— 

9 (A) IN GENERAL.—Except as provided in 

10 subparagraph (B), the Truth in Lending Act 

11 (15 U.S.C. 1601 et seq.) is amended by striking 

12 ‘‘Federal Trade Commission’’ each place such 

13 term appears and inserting ‘‘Agency’’. 

14 (B) EXCEPTIONS.—The amendment de15 scribed in subparagraph (A) shall not apply to 

16 sections 108(c) (as amended by paragraph (4)) 

17 and 129(m) (as amended by paragraph (7)) or 

18 any reference in either such section to the term 

19 ‘‘Federal Trade Commission’’. 

20 (6) SECTION 127.—Subparagraph (C) of section 

21 127(b)(11) of the Truth in Lending Act (15 U.S.C. 

22 1637(b)(11)) is amended to read as follows: 

23 ‘‘(C) Notwithstanding subparagraphs (A) 

24 and (B), in the case of a creditor with respect 

25 to which compliance with this title is enforced 


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1 by the Agency, the following statement, in a 

2 prominent location on the front of the billing 

3 statement, disclosed clearly and conspicuously: 

4 ‘Minimum Payment Warning: Making only the 

5 required minimum payment will increase the in6 terest you pay and the time it takes to repay 

7 your balance. For example, making only the 

8 typical 5 percent minimum monthly payment on 

9 a balance of $300 at an interest rate of 17 per10 cent would take 24 months to repay the balance 

11 in full. For an estimate of the time it would 

12 take to repay your balance, making only min13 imum monthly payments, call the Consumer Fi14 nancial Protection Agency at this toll-free num15 ber: lllllllll [the blank space to 

16 be filled in by the creditor].’ A creditor who is 

17 subject to this subparagraph shall not be sub18 ject to subparagraph (A) or (B).’’. 

19 (7) SECTION 129.—Section 129(m) of the Truth 

20 in Lending Act (15 U.S.C. 1639(m)) is amended to 

21 read as follows: 

22 ‘‘(m) CIVIL PENALTIES IN FEDERAL TRADE COM23 MISSION ENFORCEMENT ACTIONS.—For purposes of en24 forcement by the Federal Trade Commission, any violation 

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1 section (l)(2) of this section shall be treated as a violation 

2 of a rule promulgated under section 18 of the Federal 

3 Trade Commission Act (15 U.S.C. 57a) regarding unfair 

4 or deceptive acts or practices.’’. 

5 (b) FAIR CREDIT REPORTING ACT.— 

6 (1) SECTION 603.—Section 603 of the Fair 

7 Credit Reporting Act (15 U.S.C. 1681a) is amend8 ed— 

9 (A) by redesignating subsections (w) and 

10 (x) as subsections (x) and (y), respectively; and 

11 (B) by inserting after subsection (v) the 

12 following new subsection: 

13 ‘‘(w) AGENCY.—The term ‘Agency’ means the Con14 sumer Financial Protection Agency.’’. 

15 (2) UNIVERSAL AMENDMENTS RELATING TO

16 THE FEDERAL TRADE COMMISSION.—Other than in 

17 connection with the amendment made by paragraph 

18 (7)(A), the Fair Credit Reporting Act (15 U.S.C. 

19 1681a) is amended— 

20 (A) by striking ‘‘Federal Trade Commis21 sion’’ each place such term appears and insert22 ing ‘‘Agency’’; 

23 (B) by striking ‘‘Commission’’ each place 

24 such term appears (other than in connection 


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1 with the term amended in subparagraph (A)) 

2 and inserting ‘‘Agency’’; and 

3 (C) by striking ‘‘Federal banking agencies, 

4 the National Credit Union Administration, and 

5 the Commission shall jointly’’ each place such 

6 term appears in sections 605(h)(2), 615(e)(1), 

7 623(a)(8)(A), 623(e)(1), 628(a)(1), and 

8 628(a)(3) and inserting ‘‘Agency shall’’. 

9 (3) SECTION 603.—Section 603(k)(2) of the 

10 Fair Credit Reporting Act (15 U.S.C. 1681a(k)(2)) 

11 is amended by striking ‘‘Board of Governors of the 

12 Federal Reserve System’’ and inserting ‘‘Agency’’. 

13 (4) SECTION 604.—Subsection 604(g) of the 

14 Fair Credit Reporting Act (15 U.S.C. 1681b(g)) is 

15 amended— 

16 (A) by striking subparagraph (C) of para17 graph (3) and inserting the following new sub18 sections: 

19 ‘‘(C) as otherwise determined to be nec20 essary and appropriate, by regulation or order 

21 and subject to paragraph (6), by the Agency 

22 (with respect to any covered person subject to 

23 the jurisdiction of such agency under paragraph 

24 (2) of section 621(b)), or the applicable State 


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1 insurance authority (with respect to any person 

2 engaged in providing insurance or annuities).’’; 

3 (B) by striking paragraph (5) and insert4 ing the following new paragraph: 

5 ‘‘(5) REGULATIONS AND EFFECTIVE DATE FOR

6 PARAGRAPH (2).— 

7 ‘‘(A) REGULATIONS REQUIRED.—The 

8 Agency may, after notice and opportunity for 

9 comment, prescribe regulations that permit 

10 transactions under paragraph (2) that are de11 termined to be necessary and appropriate to 

12 protect legitimate operational, transactional, 

13 risk, consumer, and other needs (and which 

14 shall include permitting actions necessary for 

15 administrative verification purposes), consistent 

16 with the intent of paragraph (2) to restrict the 

17 use of medical information for inappropriate 

18 purposes.’’; and 

19 (C) by striking paragraph (6). 

20 (5) SECTION 611.—Subsection 611(e)(2) of the 

21 Fair Credit Reporting Act (15 U.S.C.1681i(e)(2)) is 

22 amended to read as follows: 

23 ‘‘(2) EXCLUSION.—Complaints received or ob24 tained by the Agency pursuant to its investigative 

25 authority under the Consumer Financial Protection 


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1 Agency Act of 2009 shall not be subject to para2 graph (1).’’. 

3 (6) SECTION 615.—Subparagraph 615(h)(6)(A) 

4 of the Fair Credit Reporting Act (15 U.S.C. 

5 1681m(h)(6)(A)) is amended to read as follows: 

6 ‘‘(A) RULES REQUIRED.—The Agency 

7 shall prescribe rules.’’. 

8 (7) SECTION 621.—Section 621 of the Fair 

9 Credit Reporting Act (15 U.S.C. 1681s) is amend10 ed— 

11 (A) by striking subsection (a) and insert12 ing the following new subsection: 

13 ‘‘(a) ENFORCEMENT BY FEDERAL TRADE COMMIS14 SION.— 

15 ‘‘(1) IN GENERAL.—Subject to section 1022 of 

16 the Consumer Financial Protection Agency Act of 

17 2009, compliance with the requirements imposed 

18 under this title shall be enforced under the Federal 

19 Trade Commission Act by the Federal Trade Com20 mission with respect to consumer reporting agencies 

21 and all other persons subject thereto, except to the 

22 extent that enforcement of the requirements imposed 

23 under this title is specifically committed to some 

24 other government agency under subsection (b) here25 of. For the purpose of the exercise by the Federal 


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1 Trade Commission of its functions and powers under 

2 the Federal Trade Commission Act, a violation of 

3 any requirement or prohibition imposed under this 

4 title shall constitute an unfair or deceptive act or 

5 practice in commerce in violation of section 5(a) of 

6 the Federal Trade Commission Act and shall be sub7 ject to enforcement by the Federal Trade Commis8 sion under section 5(b) of such Act with respect to 

9 any consumer reporting agency or person subject to 

10 enforcement by the Federal Trade Commission pur11 suant to this subsection, irrespective of whether that 

12 person is engaged in commerce or meets any other 

13 jurisdictional tests in the Federal Trade Commission 

14 Act. The Federal Trade Commission shall have such 

15 procedural, investigative, and enforcement powers 

16 (subject to section 1022 of the Consumer Financial 

17 Protection Agency Act of 2009), including the power 

18 to issue procedural rules in enforcing compliance 

19 with the requirements imposed under this title and 

20 to require the filing of reports, the production of 

21 documents, and the appearance of witnesses as 

22 though the applicable terms and conditions of the 

23 Federal Trade Commission Act were part of this 

24 title. Any person violating any of the provisions of 

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1 tled to the privileges and immunities provided in the 

2 Federal Trade Commission Act as though the appli3 cable terms and provisions thereof were part of this 

4 title. 

5 ‘‘(2) CIVIL MONEY PENALTIES.— 

6 ‘‘(A) IN GENERAL.—Subject to section 

7 1022 of the Consumer Financial Protection 

8 Agency Act of 2009, in the event of a knowing 

9 violation, which constitutes a pattern or prac10 tice of violations of this title, the Commission 

11 may commence a civil action to recover a civil 

12 penalty in a district court of the United States 

13 against any person that violates this title. In 

14 such action, such person shall be liable for a 

15 civil penalty of not more than $2,500 per viola16 tion. 

17 ‘‘(B) FACTORS IN DETERMINING

18 AMOUNT.—In determining the amount of a civil 

19 penalty under subparagraph (A), the court shall 

20 take into account the degree of culpability, any 

21 history of prior such conduct, ability to pay, ef22 fect on ability to continue to do business, and 

23 such other matters as justice may require. 

24 ‘‘(3) EXCEPTION.—Notwithstanding paragraph 

25 (2), a court may not impose any civil penalty on a 


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1 person for a violation of section 623(a)(1) unless the 

2 person has been enjoined from committing the viola3 tion, or ordered not to commit the violation, in an 

4 action or proceeding brought by or on behalf of the 

5 Federal Trade Commission, and has violated the in6 junction or order, and the court may not impose any 

7 civil penalty for any violation occurring before the 

8 date of the violation of the injunction or order.’’; 

9 (B) by striking subsection (b) and insert10 ing the following new subsection: 

11 ‘‘(b) ENFORCEMENT BY OTHER AGENCIES.—Subject 

12 to section 1022 of the Consumer Financial Protection 

13 Agency Act of 2009, compliance with the requirements im14 posed under this title with respect to consumer reporting 

15 agencies, persons who use consumer reports from such 

16 agencies, persons who furnish information to such agen17 cies, and users of information that are subject to sub18 section (d) of section 615 shall be enforced as follows: 

19 ‘‘(1) Under section 8 of the Federal Deposit In20 surance Act, in the case of— 

21 ‘‘(A) national banks, and Federal branches 

22 and Federal agencies of foreign banks, by the 

23 head of the agency responsible for chartering 

24 and regulating national banks; 


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1 ‘‘(B) member banks of the Federal Reserve 

2 System (other than national banks), branches 

3 and agencies of foreign banks (other than Fed4 eral branches, Federal agencies, and insured 

5 State branches of foreign banks), commercial 

6 lending companies owned or controlled by for7 eign banks, and organizations operating under 

8 section 25 or 25A of the Federal Reserve Act, 

9 by the Board of Governors of the Federal Re10 serve System; 

11 ‘‘(C) banks insured by the Federal Deposit 

12 Insurance Corporation (other than members of 

13 the Federal Reserve System, Federal savings 

14 associations, and savings and loan holding com15 panies) and insured State branches of foreign 

16 banks, by the Board of Directors of the Federal 

17 Deposit Insurance Corporation; and 

18 ‘‘(D) Federal savings associations and sav19 ings and loan holding companies, by the Direc20 tor of the Office of Thrift Supervision. 

21 ‘‘(2) Under subtitle E of the Consumer Finan22 cial Protection Agency Act of 2009, by the Agency 

23 in the case of a covered person under that Act. 


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1 ‘‘(3) Under the Federal Credit Union Act, by 

2 the National Credit Union Administration Board 

3 with respect to any Federal credit union. 

4 ‘‘(4) Under subtitle IV of title 49, United 

5 States Code, by the Secretary of Transportation, 

6 with respect to all carriers subject to the jurisdiction 

7 of the Surface Transportation Board. 

8 ‘‘(5) Under the Federal Aviation Act of 1958, 

9 by the Secretary of Transportation with respect to 

10 any air carrier or foreign air carrier subject to that 

11 Act. 

12 ‘‘(6) Under the Packers and Stockyards Act, 

13 1921 (except as provided in section 406 of that Act), 

14 by the Secretary of Agriculture with respect to any 

15 activities subject to that Act. 

16 Any term used in paragraph (1) that is not defined in 

17 this title or otherwise defined in section 3(s) of the Federal 

18 Deposit Insurance Act shall have the meaning given to 

19 such term in section 1(b) of the International Banking Act 

20 of 1978.’’; 

21 (C) by striking subsection (e) and inserting 

22 the following new subsection: 

23 ‘‘(e) REGULATORY AUTHORITY.—The Agency shall 

24 prescribe such regulations as necessary to carry out the 


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1 purposes of this Act with respect to a covered person de2 scribed in subsection (b)’’; and 

3 (D) in the heading of subsection (g) by 

4 striking ‘‘FTC’’. 

5 (8) SECTION 623.—Section 623 of the Fair 

6 Credit Reporting Act (15 U.S.C. 1681s–2) is 

7 amended— 

8 (A) by amending subparagraph (a)(7)(D) 

9 to read as follows: 

10 ‘‘(D) MODEL DISCLOSURE.— 

11 ‘‘(i) DUTY OF AGENCY TO PRE12 PARE.—The Agency shall prescribe a brief 

13 model disclosure a financial institution 

14 may use to comply with subparagraph (A), 

15 which shall not exceed 30 words. 

16 ‘‘(ii) USE OF MODEL NOT RE17 QUIRED.—No provision of this paragraph 

18 shall be construed as requiring a financial 

19 institution to use any such model form pre20 scribed by the Agency. 

21 ‘‘(iii) COMPLIANCE USING MODEL.—A 

22 financial institution shall be deemed to be 

23 in compliance with subparagraph (A) if the 

24 financial institution uses any such model 

25 form prescribed by the Agency, or the fiVerDate Nov 24 2008 22:57 Jul 09, 2009 Jkt 079200 PO 00000 Frm 00183 Fmt 6652 Sfmt 6201 E:\BILLS\H3126.IH H3126

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1 nancial institution uses any such model 

2 form and rearranges its format.’’. 

3 (B) by amending subsection (e) to read as 

4 follows: 

5 ‘‘(e) ACCURACY GUIDELINES AND REGULATIONS RE6 QUIRED.— 

7 ‘‘(1) GUIDELINES.—The Agency shall, with re8 spect to the entities that are subject to its enforce9 ment authority under section 621— 

10 ‘‘(A) establish and maintain guidelines for 

11 use by each person that furnishes information 

12 to a consumer reporting agency regarding the 

13 accuracy and integrity of the information relat14 ing to consumers that such entities furnish to 

15 consumer reporting agencies, and update such 

16 guidelines as often as necessary; and 

17 ‘‘(B) prescribe regulations requiring each 

18 person that furnishes information to a con19 sumer reporting agency to establish reasonable 

20 policies and procedures or implementing the 

21 guidelines established pursuant to subpara22 graph (A). 

23 ‘‘(2) CRITERIA.—In developing the guidelines 

24 required by paragraph (1)(A), the Agency shall— 


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1 ‘‘(A) identify patterns, practices, and spe2 cific forms of activity that can compromise the 

3 accuracy and integrity of information furnished 

4 to consumer reporting agencies; 

5 ‘‘(B) review the methods (including techno6 logical means) used to furnish information re7 lating to consumers to consumer reporting 

8 agencies; 

9 ‘‘(C) determine whether persons that fur10 nish information to consumer reporting agen11 cies maintain and enforce policies to ensure the 

12 accuracy and integrity of information furnished 

13 to consumer reporting agencies; and 

14 ‘‘(D) examine the policies and processes 

15 that persons that furnish information to con16 sumer reporting agencies employ to conduct re17 investigations and correct inaccurate informa18 tion relating to consumers that has been fur19 nished to consumer reporting agencies.’’ 

20 (c) EQUAL CREDIT OPPORTUNITY ACT.— 

21 (1) SECTION 701.—Section 701 of the Equal 

22 Credit Opportunity Act (15 U.S.C. 1691) is amend23 ed by striking ‘‘Board’’ each place such term ap24 pears and inserting ‘‘Agency’’. 


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1 (2) SECTION 702.—Section 702(c) of the Equal 

2 Credit Opportunity Act (15 U.S.C. 1691a) is 

3 amended to read as follows: 

4 ‘‘(c) The term ‘Agency’ means the Consumer Finan5 cial Protection Agency.’’. 

6 (3) SECTION 703.—Section 703 of the Equal 

7 Credit Opportunity Act (15 U.S.C. 1691b) is 

8 amended— 

9 (A) by striking subsection (b); 

10 (B) by redesignating paragraphs (1), (2), 

11 (3), (4), and (5) of subsection (a) as sub12 sections (a), (b), (c), (d), and (e), respectively; 

13 (C) in subsection (c) (as so redesig14 nated)— 

15 (i) by striking ‘‘paragraph (2)’’ and 

16 inserting ‘‘subsection (b)’’; and 

17 (ii) by striking ‘‘such paragraph’’ and 

18 inserting ‘‘such subsection;’’ 

19 (D) in subsection (d) (as so redesig20 nated)— 

21 (i) by striking ‘‘subsection’’ and in22 serting ‘‘section’ ’’ 

23 (ii) by striking ‘‘Act’’ and inserting 

24 ‘‘title’’; and 


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1 (iii) by striking ‘‘this paragraph’’ and 

2 inserting ‘‘this subsection’’; and 

3 (E) by striking ‘‘Board’’ each place such 

4 term appears in such section and inserting 

5 ‘‘Agency’’. 

6 (4) SECTION 704.—Section 704 of the Equal 

7 Credit Opportunity Act (15 U.S.C. 1691c) is amend8 ed— 

9 (A) in subsection (a)— 

10 (i) in the matter preceding paragraph 

11 (1), by striking ‘‘Compliance’’ and insert12 ing ‘‘Subject to section 1022 of the Con13 sumer Financial Protection Agency Act of 

14 2009, compliance’’; 

15 (ii) in paragraph (1)(A), by striking 

16 ‘‘Office of the Comptroller of the Cur17 rency’’ and inserting ‘‘head of the agency 

18 responsible for chartering and regulating 

19 national banks’’; 

20 (iii) in paragraph (1)(B), by striking 

21 ‘‘and’’ after the semicolon; 

22 (iv) in paragraph (1)(C), by inserting 

23 ‘‘and’’ after the semicolon; 


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1 (v) by inserting after subparagraph 

2 (C) of paragraph (1) the following new 

3 subparagraph: 

4 ‘‘(D) savings associations and savings and 

5 loan holding companies by the Director of the 

6 Office of Thrift Supervision;’’; and 

7 (vi) by amending paragraph (2) to 

8 read as follows: 

9 ‘‘(2) Subtitle E of the Consumer Financial Pro10 tection Agency Act of 2009, by the Agency in case 

11 of a covered person under that Act.’’; 

12 (B) by striking subsection (c) and insert13 ing the following new subsection: 

14 ‘‘(c) OVERALL ENFORCEMENT AUTHORITY OF FED15 ERAL TRADE COMMISSION.—Except to the extent that en16 forcement of the requirements imposed under this title is 

17 specifically committed to some other Government agency 

18 under subsection (a) and subject to section 1022 of the 

19 Consumer Financial Protection Agency Act of 2009, the 

20 Federal Trade Commission shall enforce such require21 ments. For the purpose of the exercise by the Federal 

22 Trade Commission of its functions and powers under the 

23 Federal Trade Commission Act, a violation of any require24 ment imposed under this title shall be deemed a violation 

25 of a requirement imposed under that Act. All of the funcVerDate Nov 24 2008 22:57 Jul 09, 2009 Jkt 079200 PO 00000 Frm 00188 Fmt 6652 Sfmt 6201 E:\BILLS\H3126.IH H3126

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1 tions and powers of the Federal Trade Commission under 

2 the Federal Trade Commission Act are available to the 

3 Commission to enforce compliance by any person with the 

4 requirements imposed under this title, irrespective of 

5 whether that person is engaged in commerce or meets any 

6 other jurisdictional tests in the Federal Trade Commission 

7 Act, including the power to enforce any rule prescribed 

8 by the Agency under this title in the same manner as if 

9 the violation had been a violation of a Federal Trade Com10 mission trade regulation rule.’’; and 

11 (C) in subsection (d), by striking ‘‘Board’’ 

12 and inserting ‘‘Agency’’. 

13 (5) SECTION 704a.—Section 704A(a)(1) of the 

14 Equal Credit Opportunity Act (15 U.S.C. 1691c– 

15 1(a)(1)) is amended in by striking ‘‘Board’’ and in16 serting ‘‘Agency’’. 

17 (6) SECTION 705.—Section 705 of the Equal 

18 Credit Opportunity Act (15 U.S.C. 1691d) is 

19 amended— 

20 (A) in subsection (f), by striking ‘‘Board’’ 

21 each place such term appears and inserting 

22 ‘‘Agency’’; and 

23 (B) in subsection (g), by striking ‘‘Board’’ 

24 and inserting ‘‘Agency’’. 


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1 (7) SECTION 706.—Section 706(e) of the Equal 

2 Credit Opportunity Act (15 U.S.C. 1691e(e)) is 

3 amended— 

4 (A) by striking ‘‘Board’’ each place such 

5 term appears and inserting ‘‘Agency’’; and 

6 (B) by striking ‘‘Federal Reserve System’’ 

7 and inserting ‘‘Consumer Financial Protection 

8 Agency’’. 

9 (8) SECTION 707.—Section 707 of the Equal 

10 Credit Opportunity Act (15 U.S.C. 1691f) is amend11 ed by striking ‘‘Board’’ each place such term ap12 pears and inserting ‘‘Agency’’. 

13 (d) FAIR DEBT COLLECTION PRACTICES ACT.— 

14 (1) SECTION 803.—Section 803 of the Fair 

15 Debt Collection Practices Act (15 U.S.C. 1692a) is 

16 amended— 

17 (A) by redesignating paragraphs (1), (2), 

18 (3), (4), (5), (6), (7), and (8) as paragraphs 

19 (2), (3), (4), (5), (6), (7), (8), and (9), respec20 tively; and 

21 (B) by inserting before paragraph (2) (as 

22 so redesignated) the following new paragraph: 

23 ‘‘(1) The term ‘Agency’ means the Consumer 

24 Financial Protection Agency.’’. 


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1 (2) SECTION 813.—Section 813(e) of the Fair 

2 Debt Collection Practices Act (15 U.S.C. 1692k(e)) 

3 is amended by striking ‘‘Commission’’ and inserting 

4 ‘‘Agency’’. 

5 (3) SECTION 814.—Section 814 of the Fair 

6 Debt Collection Practices Act (15 U.S.C. 1692l) is 

7 amended— 

8 (A) by striking subsection (a) and insert9 ing the following new subsection: 

10 ‘‘(a) FEDERAL TRADE COMMISSION.—Subject to sec11 tion 1022 of the Consumer Financial Protection Agency 

12 Act of 2009, compliance with this title shall be enforced 

13 by the Commission, except to the extent that enforcement 

14 of the requirements imposed under this title is specifically 

15 committed to another agency under subsection (b). For 

16 purpose of the exercise by the Commission of its functions 

17 and powers under the Federal Trade Commission Act, a 

18 violation of this title shall be deemed an unfair or decep19 tive act or practice in violation of that Act. All of the func20 tions and powers of the Commission under the Federal 

21 Trade Commission Act are available to the Commission 

22 to enforce compliance by any person with this title, irre23 spective of whether that person is engaged in commerce 

24 or meets any other jurisdictional tests in the Federal 

25 Trade Commission Act, including the power to enforce the 


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1 provisions of this title in the same manner as if the viola2 tion had been a violation of a Federal Trade Commission 

3 trade regulation rule.’’; 

4 (B) in subsection (b)— 

5 (i) in the matter preceding paragraph 

6 (1), by striking ‘‘Compliance’’ and insert7 ing ‘‘Subject to section 1022 of the Con8 sumer Financial Protection Agency Act of 

9 2009, compliance’’. 

10 (ii) in paragraph (1)(A), by striking 

11 ‘‘Office of the Comptroller of the Cur12 rency;’’ and inserting ‘‘head of the agency 

13 responsible for chartering and regulating 

14 national banks’’; 

15 (iii) in paragraph (1)(B), by striking 

16 ‘‘and’’ after the semicolon; 

17 (iv) in paragraph (1)(C), by inserting 

18 ‘‘and’’ after the semicolon; 

19 (v) by inserting after subparagraph 

20 (C) of paragraph (1) the following new 

21 subparagraph: 

22 ‘‘(D) savings associations and savings and 

23 loan holding companies by the Director of the 

24 Office of Thrift Supervision;’’; and 


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1 (vi) by striking paragraph (2) and in2 serting the following new paragraph: 

3 ‘‘(2) subtitle E of the Consumer Financial Pro4 tection Agency Act of 2009 by the Agency in the 

5 case of a covered person under the Act’’; and 

6 (C) in subsection (d), by striking ‘‘Com7 mission’’ and inserting ‘‘Agency’’. 

8 (4) SECTION 815.—Section 815 (15 U.S.C. 

9 1692m) is amended by striking ‘‘Commission’’ each 

10 place such term appears and inserting ‘‘Agency’’. 

11 (5) SECTION 817.—Section 817 (15 U.S.C. 

12 1692o) is amended by striking ‘‘Commission’’ each 

13 place such term appears and inserting ‘‘Agency’’. 

14 (e) ELECTRONIC FUND TRANSFER ACT.— 

15 (1) SECTION 903.—Section 903 of the Elec16 tronic Fund Transfer Act (15 U.S.C. 1693a) is 

17 amended— 

18 (A) by striking paragraph (3) and insert19 ing the following new paragraph: 

20 ‘‘(3) the term ‘Agency’ means the Consumer Fi21 nancial Protection Agency;’’; and 

22 (B) in paragraph (6), by striking ‘‘Board’’ 

23 and inserting ‘‘Agency’’. 

24 (2) SECTION 904.—Section 904 of the Elec25 tronic Fund Transfer Act (15 U.S.C. 1693b) is 


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1 amended by striking ‘‘Board’’ each place such term 

2 appears and inserting ‘‘Agency’’. 

3 (3) SECTION 905.—Section 905 of the Elec4 tronic Fund Transfer Act (15 U.S.C. 1693c) is 

5 amended by striking ‘‘Board’’ each place such term 

6 appears and inserting ‘‘Agency’’. 

7 (4) SECTION 906.—Section 906(b) of the Elec8 tronic Fund Transfer Act (15 U.S.C. 1693d(b)) is 

9 amended by striking ‘‘Board’’ and inserting ‘‘Agen10 cy’’. 

11 (5) SECTION 907.—Section 907(b) of the Elec12 tronic Fund Transfer Act (15 U.S.C. 1693e(b)) is 

13 amended by striking ‘‘Board’’ and inserting ‘‘Agen14 cy’’. 

15 (6) SECTION 908.—Section 908(f)(7) of the 

16 Electronic Fund Transfer Act (15 U.S.C. 

17 1693f(f)(7)) is amended by striking ‘‘Board’’ and in18 serting ‘‘Agency’’. 

19 (7) SECTION 910.—Section 910(a)(1)(E) of the 

20 Electronic Fund Transfer Act (15 U.S.C. 

21 1693h(a)(1)(E)) is amended by striking ‘‘Board’’ 

22 and inserting ‘‘Agency’’. 

23 (8) SECTION 911.—Section 911(b)(3) of the 

24 Electronic Fund Transfer Act (15 U.S.C. 


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1 1693i(b)(3) is amended by striking ‘‘Board’’ and in2 serting ‘‘Agency’’. 

3 (9) SECTION 915.—Section 915(d) of the Elec4 tronic Fund Transfer Act (15 U.S.C. 1693m(d)) is 

5 amended— 

6 (A) by striking ‘‘Board’’ each place such 

7 term appears and inserting ‘‘Agency’’; and 

8 (B) by striking ‘‘Federal Reserve System’’ 

9 and inserting ‘‘Consumer Financial Protection 

10 Agency’’. 

11 (10) SECTION 917.—Section 917 of the Elec12 tronic Fund Transfer Act (15 U.S.C. 1693o) is 

13 amended— 

14 (A) in subsection (a)— 

15 (i) by striking ‘‘Compliance’’ and in16 serting ‘‘Subject to section 1022 of the 

17 Consumer Financial Protection Agency Act 

18 of 2009, compliance’’; 

19 (ii) in paragraph (1)(A), by striking 

20 ‘‘Office of the Comptroller of the Cur21 rency’’ and inserting ‘‘head of the agency 

22 responsible for chartering and regulating 

23 national banks’’; and 

24 (iii) by striking paragraph (2) and in25 serting: 


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1 ‘‘(2) subtitle E of the Consumer Financial Pro2 tection Agency Act of 2009, by the Agency in the 

3 case of a covered person under that Act.’’; and 

4 (B) by striking subsection (c) and insert5 ing the following new subsection: 

6 ‘‘(c) OVERALL ENFORCEMENT AUTHORITY OF THE

7 FEDERAL TRADE COMMISSION.—Except to the extent 

8 that enforcement of the requirements imposed under this 

9 title is specifically committed to some other Government 

10 agency under subsection (a) and subject to section 1022 

11 of the Consumer Financial Protection Agency Act of 2009, 

12 the Federal Trade Commission shall enforce such require13 ments. For the purpose of the exercise by the Federal 

14 Trade Commission of its functions and powers under the 

15 Federal Trade Commission Act, a violation of any require16 ment imposed under this title shall be deemed a violation 

17 of a requirement imposed under that Act. All of the func18 tions and powers of the Federal Trade Commission under 

19 the Federal Trade Commission Act are available to the 

20 Commission to enforce compliance by any person subject 

21 to the jurisdiction of the Commission with the require22 ments imposed under this title, irrespective of whether 

23 that person is engaged in commerce or meets any other 

24 jurisdictional tests in the Federal Trade Commission 

25 Act.’’. 


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1 (11) SECTION 918.—Section 918 of the Elec2 tronic Fund Transfer Act (15 U.S.C. 1693p) is 

3 amended by striking ‘‘Board’’ each place such term 

4 appears and inserting ‘‘Agency’’. 

5 (12) SECTION 919.—Section 919 of the Elec6 tronic Fund Transfer Act (15 U.S.C. 1693q) is 

7 amended by striking ‘‘Board’’ each place such term 

8 appears and inserting ‘‘Agency’’. 

9 (13) SECTION 920.—Section 920 of the Elec10 tronic Fund Transfer Act (15 U.S.C. 1693r) is 

11 amended by striking ‘‘Board’’ each place such term 

12 appears and inserting ‘‘Agency’’. 

13 (f) AMENDMENTS TO HOEPA RELATING TO THE

14 TRUTH IN LENDING ACT.—Section 158 of the Home 

15 Ownership and Equity Protection Act of 1994 (15 U.S.C. 

16 1601 nt.) (relating to hearings on home equity lending) 

17 is amended— 

18 (1) in subsection (a), by striking ‘‘Board of 

19 Governors of the Federal Reserve System, in con20 sultation with the Consumer Advisory Council of the 

21 Board,’’ and inserting ‘‘Consumer Financial Protec22 tion Agency, in consultation with the Advisory 

23 Board to the Agency’’; and 


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1 (2) in subsection (b), by striking ‘‘Board of 

2 Governors of the Federal Reserve System’’ and in3 serting ‘‘Consumer Financial Protection Agency’’. 

4 (g) AMENDMENT TO THE FAIR AND ACCURATE

5 CREDIT TRANSACTIONS ACT OF 2003 RELATING TO THE

6 FAIR CREDIT REPORTING ACT.—Section 214(b)(1) of the 

7 Fair and Accurate Credit Transactions Act of 2003 (15 

8 U.S.C. 1681s–3 nt.) is amended by striking ‘‘The Federal 

9 banking agencies, the National Credit Union Administra10 tion, and the Commission, with respect to the entities that 

11 are subject to their respective enforcement authority under 

12 section 621 of the Fair Credit Reporting Act and’’ and 

13 inserting ‘‘The Consumer Financial Protection Agency, 

14 with respect to a person subject to the enforcement au15 thority of the Agency, and’’. 

16 SEC. 185. AMENDMENTS TO THE EXPEDITED FUNDS AVAIL17 ABILITY ACT. 

18 (a) SECTION 605.—Section 605(f)(1) of the Expe19 dited Funds Availability Act (12 U.S.C. 4004(f)(1)) is 

20 amended by inserting ‘‘, in consultation with the Director 

21 of the Consumer Financial Protection Agency,’’after 

22 ‘‘Board’’. 

23 (b) SECTION 609.—Section 609(a) of the Expedited 

24 Funds Availability Act (12 U.S.C. 4008(a)) is amended 


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1 by inserting ‘‘, in consultation with the Director of the 

2 Consumer Financial Protection Agency,’’after ‘‘Board’’. 

3 SEC. 186. AMENDMENTS TO THE FEDERAL DEPOSIT INSUR4 ANCE ACT. 

5 (a) SECTION 8.—Section 8(t) the Federal Deposit In6 surance Act (12 U.S.C. 1818(t)) is amended by adding 

7 at the end the following new paragraph: 

8 ‘‘(6) REFERRAL TO CONSUMER FINANCIAL PRO9 TECTION COMMISSION.—Each appropriate Federal 

10 banking agency shall make a referral to the Con11 sumer Financial Protection Agency when the Fed12 eral banking agency has a reasonable belief that a 

13 violation of an enumerated consumer law, as defined 

14 in section 1022(e)(2) of the Consumer Financial 

15 Protection Agency Act of 2009, by any insured de16 pository institution or institution-affiliated party 

17 within the jurisdiction of that appropriate Federal 

18 banking agency.’’. 

19 (b) SECTION 43.—Section 43 of the Federal Deposit 

20 Insurance Act (12 U.S.C. 1831t) is amended— 

21 (1) in subsection (c), by striking ‘‘Federal 

22 Trade Commission’’ and inserting ‘‘Agency’’; 

23 (2) in subsection (d), by striking ‘‘Federal 

24 Trade Commission’’ and inserting ‘‘Agency’’; 

25 (3) in subsection (e)— 


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1 (A) in paragraph (1), by striking ‘‘Federal 

2 Trade Commission’’ and inserting ‘‘Agency’’; 

3 and 

4 (B) by adding at the end the following new 

5 paragraph: 

6 ‘‘(5) AGENCY.—The term ‘Agency’ means the 

7 Consumer Financial Protection Agency.’’. 

8 (e) SECTION 43(f).—Section 43(f) of the Federal De9 posit Insurance Act (12 U.S.C. 1831t(f)) is amended— 

10 (1) by striking paragraph (1) and inserting the 

11 following new paragraph: 

12 ‘‘(1) LIMITED ENFORCEMENT AUTHORITY.— 

13 Compliance with the requirements of subsections (b), 

14 (c) and (e), and any regulation prescribed or order 

15 issued under such subsection, shall be enforced 

16 under the Consumer Financial Protection Agency 

17 Act of 2009 by the Agency.’’; and 

18 (2) in paragraph (2), by striking subparagraph 

19 (C) and inserting the following new subparagraph: 

20 ‘‘(C) LIMITATION ON STATE ACTION

21 WHILE FEDERAL ACTION PENDING.—If the 

22 Agency has instituted an enforcement action for 

23 a violation of this section, no appropriate State 

24 supervisory may, during the pendency of such 

25 action, bring an action under this section 


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1 against any defendant named in the complaint 

2 of the Agency for any violation of this section 

3 that is alleged in that complaint.’’. 

4 SEC. 187. AMENDMENTS TO THE GRAMM-LEACH-BLILEY 

5 ACT. 

6 (a) SECTION 504.—Section 504(a)(1) of the Gramm7 Leach-Bliley Act (15 U.S.C. 6804(a)(1)) is amended— 

8 (1) by striking ‘‘The Federal banking agencies, 

9 the National Credit Union Administration, the Sec10 retary of the Treasury,’’ and inserting ‘‘The Con11 sumer Financial Protection Agency and’’; and 

12 (2) by striking ‘‘, and the Federal Trade Com13 mission’’. 

14 (b) SECTION 505.— 

15 (1) Section 505(a) of the Gramm-Leach-Bliley 

16 Act (15 U.S.C. 6805(a)) is amended— 

17 (A) in the matter preceding paragraph (1), 

18 by striking ‘‘This subtitle and the regulations 

19 prescribed thereunder shall be enforced by’’ and 

20 inserting ‘‘Subject to section 1022 of the Con21 sumer Financial Protection Agency Act of 

22 2009, this subtitle and the regulations pre23 scribed under this title shall be enforced by the 

24 Consumer Financial Protection Agency,’’; and 


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1 (B) by inserting after paragraph (7) the 

2 following new paragraph: 

3 ‘‘(8) Under the Consumer Financial Protection 

4 Agency Act of 2009, by the Consumer Financial 

5 Protection Agency in the case of financial institu6 tions and other covered persons subject to the juris7 diction of the Agency under that Act, but not with 

8 respect to the standards under section 501.’’. 

9 (2) Section 505(b)(1) of the Gramm-Leach-Bli10 ley Act (15 U.S.C. 6805(b)(1)) is amended by in11 serting ‘‘, other than the Consumer Financial Pro12 tection Agency,’’ after ‘‘described in subsection (a)’’. 

13 SEC. 188. AMENDMENTS TO THE HOME MORTGAGE DISCLO14 SURE ACT OF 1975. 

15 (a) SECTION 303.—Section 303 of the Home Mort16 gage Disclosure Act of 1975 (12 U.S.C. 2802) is amend17 ed— 

18 (1) by redesignating paragraphs (1), (2), (3), 

19 (4), (5), and (6) as paragraphs (2), (3), (4), (5), 

20 (6), and (7), respectively; and 

21 (2) by inserting before paragraph (2) (as so re22 designated) the following new paragraph: 

23 ‘‘(1) The term ‘Agency’ means the Consumer 

24 Financial Protection Agency.’’. 


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1 (b) UNIVERSAL AMENDMENT RELATING TO AGEN2 CY.—Except as provided in subsections (c), (d), (e), and 

3 (f), the Home Mortgage Disclosure Act of 1975 (12 

4 U.S.C. 2801–11) is amended by striking ‘‘Board’’ each 

5 place such term appears and inserting ‘‘Agency’’. 

6 (c) SECTION 304.—Section 304 of the Home Mort7 gage Disclosure Act of 1975 (12 U.S.C. 2803(h)) is 

8 amended— 

9 (1) in subsection (b)— 

10 (A) by striking ‘‘and’’ after the semicolon 

11 at the end of paragraph (3); 

12 (B) by striking ‘‘and gender’’ in paragraph 

13 (4), and inserting ‘‘age, and gender’’; 

14 (C) by striking the period at the end of 

15 paragraph (4) and inserting a semicolon; and 

16 (D) by inserting after paragraph (4) the 

17 following new paragraphs: 

18 ‘‘(5) the number and dollar amount of mort19 gage loans grouped according to the following meas20 urements: 

21 ‘‘(A) the total points and fees payable at 

22 origination in connection with the mortgage as 

23 determined by the Agency, taking into account 

24 15 U.S.C. 1602(aa)(4); 


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1 ‘‘(B) the difference between the annual 

2 percentage rate associated with the loan and a 

3 benchmark rate or rates for all loans; 

4 ‘‘(C) the term in months of any prepay5 ment penalty or other fee or charge payable on 

6 repayment of some portion of principal or the 

7 entire principal in advance of scheduled pay8 ments; and 

9 ‘‘(D) such other information as the Agency 

10 may require; and 

11 ‘‘(6) the number and dollar amount of mort12 gage loans and completed applications grouped ac13 cording to the following measurements: 

14 ‘‘(A) the value of the real property pledged 

15 or proposed to be pledged as collateral; 

16 ‘‘(B) the actual or proposed term in 

17 months of any introductory period after which 

18 the rate of interest may change; 

19 ‘‘(C) the presence of contractual terms or 

20 proposed contractual terms that would allow the 

21 mortgagor or applicant to make payments other 

22 than fully-amortizing payments during any por23 tion of the loan term; 

24 ‘‘(D) the actual or proposed term in 

25 months of the mortgage loan; 


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1 ‘‘(E) the channel through which applica2 tion was made, including retail, broker, and 

3 other relevant categories; 

4 ‘‘(F) as the Agency may determine to be 

5 appropriate, a unique identifier that identifies 

6 the loan originator as set forth in Section 1503 

7 of the Secure and Fair Enforcement for Mort8 gage Licensing Act of 2008; 

9 ‘‘(G) as the Agency may determine to be 

10 appropriate, a universal loan identifier that cor11 responds to the real property pledged or pro12 posed to be pledged as collateral; 

13 ‘‘(H) as the Agency may determine to be 

14 appropriate, the parcel number that cor15 responds to the real property pledged or pro16 posed to be pledged as collateral; 

17 ‘‘(I) the credit score of mortgage appli18 cants and mortgagors in such form as the 

19 Agency may proscribe; and 

20 ‘‘(J) such other information as the Agency 

21 may require.’’; 

22 (2) by striking subsection (h) and inserting the 

23 following new subsection: 

24 ‘‘(h) SUBMISSION TO AGENCIES.—The data required 

25 to be disclosed under subsection (b) shall be submitted to 


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1 the Agency and to the appropriate agency for each institu2 tion reporting under this title. Notwithstanding the re3 quirement of section 304(a)(2)(A) for disclosure by census 

4 tract, the Agency, in cooperation with other appropriate 

5 regulators, including— 

6 ‘‘(1) the head of the agency responsible for 

7 chartering and regulating national banks for na8 tional banks and Federal branches, Federal agencies 

9 of foreign banks, and savings associations; 

10 ‘‘(2) the Federal Deposit Insurance Corporation 

11 for depository institutions insured by the Federal 

12 Deposit Insurance Corporation (other than members 

13 of the Federal Reserve System, Federal savings as14 sociations, and savings and loan holding companies) 

15 and insured State branches of foreign banks; 

16 ‘‘(3) the Director of the Office of Thrift Super17 vision for Federal savings associations and savings 

18 and loan holding companies; 

19 ‘‘(4) the National Credit Union Administration 

20 Board for credit unions; and 

21 ‘‘(5) the Secretary of Housing and Urban De22 velopment for other lending institutions not regu23 lated by the agencies referred to in paragraphs (1) 

24 through (4), shall develop regulations prescribing the 

25 format for such disclosures, the method for submisVerDate Nov 24 2008 22:09 Jul 09, 2009 Jkt 079200 PO 00000 Frm 00206 Fmt 6652 Sfmt 6201 E:\BILLS\H3126.IH H3126

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1 sion of the data to the appropriate regulatory agen2 cy, and the procedures for disclosing the information 

3 to the public. These regulations shall also require 

4 the collection of data required to be disclosed under 

5 subsection (b) with respect to loans sold by each in6 stitution reporting under this title, and, in addition, 

7 shall require disclosure of the class of the purchaser 

8 of such loans. Any reporting institution may submit 

9 in writing to the Agency or to the appropriate agen10 cy such additional data or explanations as it deems 

11 relevant to the decision to originate or purchase 

12 mortgage loans.’’; 

13 (3) in subsection (i), by striking ‘‘subsection 

14 (b)(4)’’ and inserting ‘‘paragraphs (4), (5), and (6) 

15 of subsections (b)’’; 

16 (4) in subsection (j)— 

17 (A) by striking ‘‘(as’’ where such term ap18 pears in paragraph (1) and inserting ‘‘(con19 taining loan-level and application-level informa20 tion relating to disclosures required under sub21 sections (a) and (b) and as otherwise’’; 

22 (B) by striking ‘‘in the format in which 

23 such information is maintained by the institu24 tion’’ where such term appears in paragraph 


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1 (2)(A), and inserting ‘‘in such formats as the 

2 Agency may require’’; 

3 (C) by inserting ‘‘credit score or similar 

4 measurement,’’ after ‘‘number,’’ where such 

5 term appears in paragraph (2)(B)(i); and 

6 (D) by striking paragraph (3) and insert7 ing the following new paragraph: 

8 ‘‘(3) CHANGE OF FORM NOT REQUIRED.—A de9 pository institution meets the disclosure requirement 

10 of paragraph (1) if the institution provides the infor11 mation required under such paragraph in such for12 mats as the Agency may require.’’; and 

13 (5) by striking paragraph (2) of subsection (m) 

14 and inserting the following new paragraph: 

15 ‘‘(2) FORM OF INFORMATION.—In complying 

16 with paragraph (1), a depository institution shall 

17 provide the person requesting the information with 

18 a copy of the information requested in such formats 

19 as the Agency may require.’’. 

20 (d) SECTION 305.—Section 305 of the Home Mort21 gage Disclosure Act of 1975 (12 U.S.C. 2804) is amend22 ed— 

23 (1) by striking subsection (b) and inserting the 

24 following new subsection: 


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1 ‘‘(b) POWERS OF CERTAIN OTHER AGENCIES.—Com2 pliance with the requirements imposed under this title 

3 shall be enforced under— 

4 ‘‘(1) section 8 of the Federal Deposit Insurance 

5 Act, in the case of— 

6 ‘‘(A) national banks, and Federal branches 

7 and Federal agencies of foreign banks, by the 

8 head of the agency responsible for chartering 

9 and regulating national banks; 

10 ‘‘(B) member banks of the Federal Reserve 

11 System (other than national banks), branches 

12 and agencies of foreign banks (other than Fed13 eral branches, Federal agencies, and insured 

14 State branches of foreign banks), commercial 

15 lending companies owned or controlled by for16 eign banks, and organizations operating under 

17 section 25 or 25(a) of the Federal Reserve Act, 

18 by the Board; 

19 ‘‘(C) depository institutions insured by the 

20 Federal Deposit Insurance Corporation (other 

21 than members of the Federal Reserve System, 

22 Federal savings associations, and savings and 

23 loan holding companies) and insured State 

24 branches of foreign banks, by the Board of DiVerDate Nov 24 2008 22:09 Jul 09, 2009 Jkt 079200 PO 00000 Frm 00209 Fmt 6652 Sfmt 6201 E:\BILLS\H3126.IH H3126

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1 rectors of the Federal Deposit Insurance Cor2 poration; and 

3 ‘‘(D) Federal savings associations, and 

4 savings and loan holding companies, by the Di5 rector of the Office of Thrift Supervision; 

6 ‘‘(2) subtitle E of the Consumer Financial Pro7 tection Agency Act of 2009, by the Agency in the 

8 case of a covered person under that Act; 

9 ‘‘(3) the Federal Credit Union Act, by the Ad10 ministrator of the National Credit Union Adminis11 tration with respect to any credit union; and 

12 ‘‘(4) other lending institutions, by the Secretary 

13 of Housing and Urban Development. The terms 

14 used in paragraph (1) that are not defined in this 

15 title or otherwise defined in section 3(s) of the Fed16 eral Deposit Insurance Act (12 U.S.C. 1813(s)) 

17 shall have the meaning given to them in section 1(b) 

18 of the International Banking Act of 1978 (12 U.S.C. 

19 3101). 

20 The terms used in paragraph (1) that are not defined in 

21 this title or otherwise defined in section 3(s) of the Federal 

22 Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the 

23 meaning given to them in section 1(b) of the International 

24 Banking Act of 1978’’; and 


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1 (2) by inserting at the end of section 305 the 

2 following new subsection: 

3 ‘‘(d) OVERALL ENFORCEMENT AUTHORITY OF THE

4 CONSUMER FINANCIAL PROTECTION AGENCY.—Subject 

5 to section 1022 of the Consumer Financial Protection 

6 Agency Act of 2009, enforcement of the requirements im7 posed under this title is committed to each of the agencies 

8 under subsection (b). The Agency may exercise its authori9 ties under the Consumer Financial Protection Agency Act 

10 of 2009 to exercise principal authority to examine and en11 force compliance by any person with the requirements 

12 under this title.’’. 

13 (e) SECTION 306.—Subsection 306(b) of the Home 

14 Mortgage Disclosure Act of 1975 (12 U.S.C. 2805(b)) is 

15 amended to read as follows: 

16 ‘‘(b) The Agency may, by regulation, exempt from the 

17 requirements of this title any State chartered depository 

18 institution within any State or subdivision of any state if 

19 the Agency determines that, under the law of such State 

20 or subdivision, that institution is subject to requirements 

21 substantially similar to those imposed under this title, and 

22 that such law contains adequate provisions for enforce23 ment. Notwithstanding any other provision of this sub24 section, compliance with the requirements imposed under 

25 this subsection shall be enforced by the head of the agency 


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1 responsible for chartering and regulating national banks 

2 under section 8 of the Federal Deposit Insurance Act in 

3 the case of national banks and savings association the de4 posits of which are insured by the Federal Deposit Insur5 ance Corporation.’’. 

6 (f) SECTION 307.—Section 307 of the Home Mort7 gage Disclosure Act of 1975 (12 U.S.C. 2806) is amended 

8 to read as follows: 

9 ‘‘SEC. 307. RESEARCH AND IMPROVED METHODS. 

10 ‘‘(a) ENHANCED COMPLIANCE IN ECONOMICAL MAN11 NER.— 

12 ‘‘(1) IN GENERAL.—The Director of the Con13 sumer Financial Protection Agency, with the assist14 ance of the Secretary, the Director of the Bureau of 

15 the Census, the Board of Governors of the Federal 

16 Reserve System, the Federal Deposit Insurance Cor17 poration, and such other persons as the Consumer 

18 Financial Protection Agency deems appropriate, 

19 shall develop or assist in the improvement of, meth20 ods of matching addresses and census tracts to fa21 cilitate compliance by depository institutions in as 

22 economical a manner as possible with the require23 ments of this title. 


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1 ‘‘(2) AUTHORIZATION OF APPROPRIATION.— 

2 There is authorized to be appropriated such sums as 

3 may be necessary to carry out this subsection. 

4 ‘‘(3) AUTHORITY OF AGENCY.—The Director of 

5 the Consumer Financial Protection Agency is au6 thorized to utilize, contract with, act through, or 

7 compensate any person or agency in order to carry 

8 out this subsection. 

9 ‘‘(b) RECOMMENDATIONS TO THE CONGRESS.—The 

10 Director of the Consumer Financial Protection Agency 

11 shall recommend to the Committee on Financial Services 

12 of the House of Representatives and the Committee on 

13 Banking, Housing, and Urban Affairs of the Senate such 

14 additional legislation as the Director of the Consumer Fi15 nancial Protection Agency deems appropriate to carry out 

16 the purpose of this title.’’. 

17 SEC. 189. AMENDMENTS TO DIVISION D OF THE OMNIBUS 

18 APPROPRIATIONS ACT, 2009. 

19 (a) Section 626(a) of title VI of division D of the 

20 Omnibus Appropriations Act, 2009 (15 U.S.C. 1638 nt.) 

21 (as amended by the Credit Card Accountability Responsi22 bility and Disclosure Act of 2009) is amended— 

23 (1) by striking by paragraph (1) and inserting 

24 the following new paragraph: 


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1 ‘‘(1) The Consumer Financial Protection Agen2 cy shall have authority to prescribe rules with re3 spect to mortgage loans in accordance with section 

4 553 of title 5, United States Code. Such rulemaking 

5 shall relate to unfair or deceptive acts or practices 

6 regarding mortgage loans, which may include unfair 

7 or deceptive acts or practices involving loan modi8 fication and foreclosure rescue services. Any viola9 tion of a rule prescribed under this subsection shall 

10 be treated as a violation of a rule prohibiting unfair, 

11 deceptive, or abusive acts or practices under the 

12 Consumer Financial Protection Agency Act of 

13 2009.’’; 

14 (2) by striking paragraph (2); 

15 (3) by striking paragraph (3); and 

16 (4) by striking paragraph (4) and inserting the 

17 following new paragraph: 

18 ‘‘(2) The Consumer Financial Protection Agen19 cy shall enforce the rules issued under paragraph (1) 

20 in the same manner, by the same means, and with 

21 the same jurisdiction, powers, and duties as though 

22 all applicable terms and provisions of the Consumer 

23 Financial Protection Agency Act of 2009 were incor24 porated into and made part of this section.’’. 


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1 (b) Section 626(b) of title VI of division D of the 

2 Omnibus Appropriations Act, 2009 (15 U.S.C. 1638 nt.) 

3 is amended— 

4 (1) by striking ‘‘Federal Trade Commission’’ 

5 and inserting ‘‘Consumer Financial Protection Agen6 cy’’; 

7 (2) by striking ‘‘the Commission’’ and inserting 

8 ‘‘the Consumer Financial Protection Agency’’; and 

9 (3) by striking ‘‘primary Federal regulatory’’ 

10 and inserting ‘‘Consumer Financial Protection Agen11 cy’’. 

12 SEC. 190. AMENDMENTS TO THE REAL ESTATE SETTLE13 MENT PROCEDURES ACT OF 1974. 

14 (a) SECTION 3.—Section 3 of the Real Estate Settle15 ment Procedures Act of 1974 (12 U.S.C. 2602) is amend16 ed by adding at the end the following new paragraph— 

17 ‘‘(9) the term ‘Agency’ means the Consumer Fi18 nancial Protection Agency.’’. 

19 (b) SECTION 4.—Section 4 of the Real Estate Settle20 ment Procedures Act of 1974 (12 U.S.C. 2603) is amend21 ed— 

22 (1) in subsection (a), by striking the first sen23 tence and inserting the following: ‘‘The Agency shall 

24 publish a single, integrated disclosure for mortgage 

25 loan transactions, including real estate settlement 


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1 cost statements, which include the disclosure re2 quirements of this title, in conjunction with the dis3 closure requirements of the Truth in Lending Act 

4 (15 U.S.C. 1601 note et seq.) that, taken together, 

5 may apply to transactions subject to both or either 

6 law. The purpose of such model disclosure shall be 

7 to facilitate compliance with the disclosure require8 ments of those titles, and to aid the borrower or les9 see in understanding the transaction by utilizing 

10 readily understandable language to simplify the tech11 nical nature of the disclosures.’’; 

12 (2) by striking ‘‘Secretary’’ each place it ap13 pears and inserting ‘‘Agency’’; and 

14 (3) by striking ‘‘form’’ each place it appears 

15 and inserting ‘‘forms’’. 

16 (c) SECTION 5.—Section 5 of the Real Estate Settle17 ment Procedures Act of 1974 (12 U.S.C. 2604) is amend18 ed— 

19 (1) by striking ‘‘Secretary’’ each place such 

20 term appears, and inserting ‘‘Agency’’; and 

21 (2) by striking the first sentence of subsection 

22 (a), and inserting ‘‘The Agency shall prepare and 

23 distribute booklets jointly complying with the re24 quirements of the Truth in Lending Act (15 U.S.C. 

25 1601 note et seq.) and the provisions of this title, 


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1 in order to help persons borrowing money to finance 

2 the purchase of residential real estate better to un3 derstand the nature and costs of real estate settle4 ment services.’’. 

5 (d) SECTION 6.—Section 6 of the Real Estate Settle6 ment Procedures Act of 1974 (12 U.S.C. 2605) is amend7 ed by striking ‘‘Secretary’’ and inserting ‘‘Agency’’; and 

8 by striking ‘‘by regulations that shall take effect not later 

9 than April 20, 1991,’’. 

10 (e) SECTION 7.—Section 7 of the Real Estate Settle11 ment Procedures Act of 1974 (12 U.S.C. 2606) is amend12 ed by striking ‘‘Secretary’’ and inserting ‘‘Agency’’. 

13 (f) SECTION 8.—Section 8(d)(4) of the Real Estate 

14 Settlement Procedures Act of 1974 (12 U.S.C. 

15 2607(d)(4)) is amended— 

16 (1) by striking ‘‘The Secretary,’’ and inserting 

17 ‘‘The Agency, the Secretary,’’; and 

18 (2) by adding at the end the following new sen19 tence: ‘‘However, to the extent that a Federal law 

20 authorizes the Agency and other Federal and State 

21 agencies to enforce or administer the law, the Agen22 cy shall have primary authority to enforce or admin23 ister that Federal law in accordance with section 

24 1022 of the Consumer Financial Protection Agency 

25 Act of 2009.’’. 


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1 (g) SECTION 10.—Section 10(d) of the Real Estate 

2 Settlement Procedures Act of 1974 (12 U.S.C. 2609(d)) 

3 is amended by striking ‘‘Secretary’’ and inserting ‘‘Agen4 cy’’. 

5 (h) SECTION 16.—Section 16 of the Real Estate Set6 tlement Procedures Act of 1974 (12 U.S.C. 2614) is 

7 amended by inserting ‘‘the Agency,’’ before ‘‘the Sec8 retary’’. 

9 (i) SECTION 18.—Section 18 of the Real Estate Set10 tlement Procedures Act of 1974 (12 U.S.C. 2616) is 

11 amended by striking ‘‘Secretary’’ and inserting ‘‘Agency’’. 

12 (j) SECTION 19.—Section 19 of the Real Estate Set13 tlement Procedures Act of 1974 (12 U.S.C. 2617) is 

14 amended by striking ‘‘Secretary’’ each place where it ap15 pears and inserting ‘‘Agency’’. 

16 SEC. 191. AMENDMENTS TO THE RIGHT TO FINANCIAL PRI17 VACY ACT OF 1978. 

18 (a) AMENDMENTS TO SECTION 1101.—Section 1101 

19 of the Right to Financial Privacy Act of 1978 (12 U.S.C. 

20 3401) is amended— 

21 (1) by striking paragraph (1) and inserting the 

22 following new paragraph: 

23 ‘‘(1) ‘financial institution’ means any bank, sav24 ings association, card issuer as defined in section 

25 103(n) of the Truth in Lending Act, credit union, or 


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1 consumer finance institution located in any State or 

2 territory of the United States, the District of Colum3 bia, Puerto Rico, Guam, American Samoa, or the 

4 Virgin Islands;’’; and 

5 (2) in paragraph (7)— 

6 (A) by redesignating subparagraphs (F), 

7 (G), (H), and (I) as subparagraphs (G), (H), 

8 (I), and (J), respectively; and 

9 (B) by inserting after subparagraph (E) 

10 the following new subparagraph: 

11 ‘‘(F) the Consumer Financial Protection 

12 Agency;’’. 

13 (b) AMENDMENTS TO SECTION 1112.—Section 

14 1112(e) of the Right to Financial Privacy Act (12 U.S.C. 

15 3412) is amended by striking ‘‘and the Commodity Fu16 tures Trading Commission is permitted’’ and inserting 

17 ‘‘the Commodity Futures Trading Commission, and the 

18 Consumer Financial Protection Agency is permitted’’. 

19 (c) AMENDMENTS TO SECTION 1113.—Section 1113 

20 of the Right to Financial Privacy Act (12 U.S.C. 3413) 

21 is amended by adding at the end the following new sub22 section— 

23 ‘‘(r) DISCLOSURE TO THE CONSUMER FINANCIAL

24 PROTECTION AGENCY.—Nothing in this chapter shall 

25 apply to the examination by or disclosure to the Consumer 


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1 Financial Protection Agency of financial records or infor2 mation in the exercise of its authority with respect to a 

3 financial institution.’’. 

4 SEC. 192. AMENDMENTS TO THE SECURE AND FAIR EN5 FORCEMENT FOR MORTGAGE LICENSING ACT 

6 OF 2008. 

7 (a) SECTION 1503.—Section 1503 of the Secure and 

8 Fair Enforcement for Mortgage Licensing Act of 2008 (12 

9 U.S.C. 5102) is amended— 

10 (1) by striking paragraph (1) and inserting the 

11 following new paragraph: 

12 ‘‘(1) AGENCY.—The term ‘Agency’ means the 

13 Consumer Financial Protection Agency.’’; and 

14 (2) by striking paragraph (9) and inserting the 

15 following new paragraph: 

16 ‘‘(9) DIRECTOR.—The term ‘Director’ means 

17 the Director of the Consumer Financial Protection 

18 Agency.’’. 

19 (b) UNIVERSAL AMENDMENTS RELATING TO AGEN20 CY.—The Secure and Fair Enforcement for Mortgage Li21 censing Act of 2008 (12 U.S.C. 5101 et seq.) is amend22 ed— 

23 (1) by striking ‘‘a Federal banking agency’’ 

24 each place such term appears and inserting ‘‘the 

25 Agency’’; 


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1 (2) by striking ‘‘Federal banking agencies’’ 

2 each place such term appears and inserting ‘‘Agen3 cy’’; and 

4 (3) by striking ‘‘Secretary’’ each place such 

5 term appears and inserting ‘‘Director’’. 

6 (c) SECTION 1507.—Section 1507 of the Secure and 

7 Fair Enforcement for Mortgage Licensing Act of 2008 (12 

8 U.S.C. 5106) is amended— 

9 (1) in subsection (a)— 

10 (A) by striking paragraph (1) and insert11 ing the following new paragraph: 

12 ‘‘(1) IN GENERAL.—The Agency shall develop 

13 and maintain a system for registering employees of 

14 a subsidiary that is owned and controlled by a de15 pository institution, and regulated by the Agency as 

16 a registered loan originator with the Nationwide 

17 Mortgage Licensing System and Registry. The sys18 tem shall be implemented before the end of a the 1- 

19 year period beginning July 30, 2009.’’; and 

20 (B) by striking ‘‘appropriate Federal bank21 ing agency and the Farm Credit Administra22 tion’’ where such term appears in paragraph 

23 (2) and inserting ‘‘Agency’’; 

24 (2) in subsection (b), by striking ‘‘Federal 

25 banking agencies, through the Financial Institutions 


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1 Examination Council and the Farm Credit Adminis2 tration’’, and inserting ‘‘Agency’’; and 

3 (3) in subsection (c), by striking ‘‘Federal 

4 banking agencies’’, and inserting ‘‘Agency’’. 

5 (d) SECTION 1508.— 

6 (1) IN GENERAL.—Section 1508 of the Secure 

7 and Fair Enforcement for Mortgage Licensing Act 

8 of 2008 (12 U.S.C. 5107) is amended by adding at 

9 the end the following new subsection— 

10 ‘‘(f) REGULATIONS.— 

11 ‘‘(1) IN GENERAL.—The Agency may prescribe 

12 regulations setting minimum net worth or surety 

13 bond requirements for residential mortgage loan 

14 originators and minimum requirements for recovery 

15 funds paid into by loan originators. 

16 ‘‘(2) FACTORS TAKEN INTO ACCOUNT.—Such 

17 regulations shall take into account the need to pro18 vide originators adequate incentives to originate af19 fordable and sustainable mortgage loans as well as 

20 the need to ensure a competitive origination market 

21 that maximizes consumers’ access to affordable and 

22 sustainable mortgage loans.’’. 

23 (2) CLERICAL AMENDMENT.—The heading for 

24 section 1508 of the Secure and Fair Enforcement 

25 for Mortgage Licensing Act of 2008 is amended by 


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1 striking ‘‘SECRETARY OF HOUSING AND URBAN

2 DEVELOPMENT’’ and inserting ‘‘CONSUMER FI3 NANCIAL PROTECTION AGENCY’’. 

4 (e) SECTION 1510.—Section 1510 of the Secure and 

5 Fair Enforcement for Mortgage Licensing Act of 2008 (12 

6 U.S.C. 5109) is amended to read as follows: 

7 ‘‘SEC. 1510. FEES. 

8 ‘‘The Agency, the Farm Credit Administration, and 

9 the Nationwide Mortgage Licensing System and Registry 

10 may charge reasonable fees to cover the costs of maintain11 ing and providing access to information from the Nation12 wide Mortgage Licensing System and Registry, to the ex13 tent that such fees are not charged to consumers for ac14 cess to such system and registry.’’. 

15 (f) SECTION 1513.—Section 1513 of the Secure and 

16 Fair Enforcement for Mortgage Licensing Act of 2008 (12 

17 U.S.C. 5112) is amended to read as follows: 

18 ‘‘SEC. 1513. LIABILITY PROVISIONS. 

19 ‘‘The Agency, any State official or agency, or any or20 ganization serving as the administrator of the Nationwide 

21 Mortgage Licensing System and Registry or a system es22 tablished by the Director under section 5108 of this title, 

23 or any officer or employee of any such entity, shall not 

24 by subject to any civil action or proceeding for monetary 

25 damages by reason of the good faith action or omission 


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1 of any officer or employee of any such entity, while acting 

2 within the scope of office or employment, relating to the 

3 collection, furnishing, or dissemination of information con4 cerning persons who are loan originators or are applying 

5 for licensing or registration as loan originators.’’. 

6 (g) SECTION 1514.—The heading for section 1514 

7 of the Secure and Fair Enforcement for Mortgage Licens8 ing Act of 2008 (12 U.S.C. 5113) is amended by striking 

9 ‘‘UNDER HUD BACKUP LICENSING SYSTEM’’ and in10 serting ‘‘BY THE AGENCY’’. 

11 SEC. 193. AMENDMENTS TO THE TRUTH IN SAVINGS ACT. 

12 (a) SECTION 263.—Section 263 of the Truth in Sav13 ings Act (12 U.S.C. 4302) is amended in subsection (b) 

14 by striking ‘‘Board’’ each place such term appears and 

15 inserting ‘‘Agency’’. 

16 (b) SECTION 265.—Section 265 of the Truth in Sav17 ings Act (12 U.S.C. 4304) is amended by striking 

18 ‘‘Board’’ each place such term appears and inserting 

19 ‘‘Agency’’. 

20 (c) SECTION 266.—Section 266(e) of the Truth in 

21 Savings Act is amended (12 U.S.C. 4305) by striking 

22 ‘‘Board’’ and inserting ‘‘Agency’’. 

23 (d) SECTION 269.—Section 269 of the Truth in Sav24 ings Act (12 U.S.C. 4308) is amended by striking 


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1 ‘‘Board’’ each place such term appears and inserting 

2 ‘‘Agency’’. 

3 (e) SECTION 270.—Section 270 of the Truth in Sav4 ings Act (12 U.S.C. 4309) is amended— 

5 (1) in subsection (a)— 

6 (A) by striking ‘‘Compliance’’ and insert7 ing ‘‘Subject to section 1022 of the Consumer 

8 Financial Protection Agency Act of 2009, com9 pliance’’; 

10 (B) by striking subparagraph (A) of para11 graph (1) and inserting the following new sub12 paragraph: 

13 ‘‘(A) by the head of the agency responsible 

14 for chartering and regulating national banks for 

15 national banks, and Federal branches and Fed16 eral agencies of foreign banks;’’; and 

17 (C) by adding at the end, the following 

18 new paragraph: 

19 ‘‘(3) subtitle E of the Consumer Financial Pro20 tection Agency Act of 2009, by the Agency in the 

21 case of a covered person under that Act.’’; and 

22 (2) in subsection (c), by striking ‘‘Board’’ and 

23 inserting ‘‘Agency’’. 

24 (f) SECTION 272.—Section 272 of the Truth in Sav25 ings Act (12 U.S.C. 4311) is amended— 


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1 (1) in subsection (a), by striking ‘‘Board’’ and 

2 inserting ‘‘Agency’’; and 

3 (2) in subsection (b), by striking ‘‘regulation 

4 prescribed by the Board’’ each place it appears and 

5 inserting ‘‘regulation prescribed by the Agency’’. 

6 (g) SECTION 273.—Section 273 of the Truth in Sav7 ings Act (12 U.S.C. 4312) is amended in the last sentence 

8 by striking ‘‘Board’’ and inserting ‘‘Agency’’. 

9 (h) SECTION 274.—Section 274 of the Truth in Sav10 ings Act (12 U.S.C. 4313) is amended— 

11 (1) in paragraph (2) by striking ‘‘Board’’ and 

12 inserting ‘‘Agency’’; and 

13 (2) by striking paragraph (4) and inserting the 

14 following new paragraph: 

15 ‘‘(4) AGENCY.—The term ‘Agency’ means the 

16 Consumer Financial Protection Agency.’’. 

17 SEC. 194. EFFECTIVE DATE. 

18 The amendments made by sections 183 through 193 

19 shall take effect on the designated transfer date. 


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1 TITLE J—IMPROVEMENTS TO 

2 THE FEDERAL TRADE COM3 MISSION ACT 

4 SEC. 201. AMENDMENTS TO THE FEDERAL TRADE COMMIS5 SION ACT. 

6 (a) Section 5(a) of the Federal Trade Commission 

7 Act (15 U.S.C. 45(a)) is amended by adding at the end 

8 the following new paragraph: 

9 ‘‘(5) In any investigation or proceeding in which 

10 it appears to the Commission that an unfair or de11 ceptive act or practice is being committed in connec12 tion with the marketing, sale, provision or delivery 

13 of a consumer financial product or service, the Com14 mission shall consult and coordinate with the Con15 sumer Financial Protection Agency, as the agencies 

16 deem to be appropriate.’’. 

17 (b) Section 5(m)(1)(A) of the Federal Trade Com18 mission Act (15 U.S.C. 45(m)(1)(A)) is amended— 

19 (1) by inserting ‘‘this Act or’’ after ‘‘violates’’ 

20 the first place it appears; 

21 (2) by inserting a comma after ‘‘chapter’’ and 

22 after ‘‘section)’’; and 

23 (3) by inserting ‘‘a violation of this Act or is’’ 

24 before ‘‘prohibited’’. 


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1 (c) Section 5 of the Federal Trade Commission Act 

2 (15 U.S.C. 45) is amended by adding at the end thereof 

3 the following new subsection: 

4 ‘‘(o) UNLAWFUL ASSISTANCE.—It is unlawful for any 

5 person, knowingly or recklessly, to provide substantial as6 sistance to another in violating any provision of this Act 

7 or of any other Act enforceable by the Commission that 

8 relates to unfair or deceptive acts or practices. Any such 

9 violation shall constitute an unfair or deceptive act or 

10 practice described in section 5(a)(1) of this Act.’’. 

11 (d) Section 18 of the Federal Trade Commission Act 

12 (15 U.S.C. 57a) is amended— 

13 (1) in subsection (a)(1)(B), by adding after 

14 ‘‘pursuant to this section’’ the following: ‘‘or with re15 gard to the marketing, sale, provision or delivery to 

16 an individual, for personal, family or household pur17 poses, of a consumer financial product or service 

18 that is subject to the jurisdiction of the Consumer 

19 Financial Protection Agency under the Consumer 

20 Financial Protection Agency Act of 2009’’; 

21 (2) by amending subsection (b) to read as fol22 lows: 

23 ‘‘(b) PROCEDURE APPLICABLE.—When prescribing a 

24 rule under subsection (a)(1)(B) of this section, the Com25 mission shall proceed in accordance with section 553 of 


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1 Title 5 (without regard to any reference in such section 

2 to sections 556 and 557 of such title).’’; 

3 (3) by striking subsections (c), (d)(1), (d)(2), 

4 (f), (i), and (j), and redesignating subsections (e), 

5 (g) and (h) as (d), (e) and (f); 

6 (4) by redesignating paragraph (d)(3) as sub7 section (c); and 

8 (5) in subsection (e)— 

9 (A) in paragraph (1)(B), by striking ‘‘the 

10 transcript required by subsection (c)(5) of this 

11 section,’’; 

12 (B) in paragraph (2), by striking every13 thing following ‘‘error)’’; and 

14 (C) in paragraph (5), by striking subpara15 graph (C). 

Æ 


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