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 de-
termined 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. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Consumer Financial 
Protection Agency Act of 2009’’. 
SEC. 2. TABLE OF CONTENTS. 
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 subsidi-
aries. 
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 subsidi-
aries. 
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 Li-
censing 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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TITLE I—CONSUMER FINANCIAL 
PROTECTION AGENCY 
SEC. 101. DEFINITIONS. 
For the purposes of subtitles A through F of this 
title, the following definitions shall apply: 
(1) AFFILIATE.—The term ‘‘affiliate’’ means 
any person that controls, is controlled by, or is 
under common control with another person. 
(2) AGENCY.—The term ‘‘Agency’’ means the 
Consumer Financial Protection Agency. 
(3) ALTERNATIVE CONSUMER FINANCIAL PROD-
UCT OR SERVICE.—The term ‘‘alternative consumer 
financial product or service’’ means a consumer fi-
nancial product or service that is of the same type 
or class as a standard consumer financial product or 
service, but that contains different or additional 
terms, fees, or features. 
(4) APPOINTED
BOARD
MEMBER.—The term 
‘‘appointed Board member’’ or ‘‘appointed Board 
members’’ means a member or members of the 
Board appointed by the President under section 
112(a)(1). 
(5) BOARD.—The term ‘‘Board’’ means the 
Board of the Consumer Financial Protection Agen-
cy. 
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(6) BOARD OF GOVERNORS.—The term ‘‘Board 
of Governors’’ means the Board of Governors of the 
Federal Reserve System. 
(7) CONSUMER.—The term ‘‘consumer’’ means 
an individual or an agent, trustee, or representative 
acting on behalf of an individual. 
(8) CONSUMER FINANCIAL PRODUCT OR SERV-
ICE.—The term ‘‘consumer financial product or 
service’’ means any financial product or service to be 
used by a consumer primarily for personal, family, 
or household purposes. 
(9) COVERED
PERSON.—The term ‘‘covered 
person’’ means— 
(A) any person who engages directly or in-
directly in a financial activity, in connection 
with the provision of a consumer financial prod-
uct or service; or 
(B) any person who, in connection with the 
provision of a consumer financial product or 
service, provides a material service to, or proc-
esses a transaction on behalf of, a person de-
scribed in subparagraph (A). 
(10) CREDIT.—The term ‘‘credit’’ means the 
right granted by a person to a consumer to defer 
payment of a debt, incur debt and defer its payment, 
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or purchase property or services and defer payment 
for such purchase. 
(11) CREDIT UNION.—The term ‘‘credit union’’ 
means a Federal credit union, State credit union, or 
State-chartered credit union as defined in section 
101 of the Federal Credit Union Act (12 U.S.C. 
1752). 
(12) DEPOSIT.—The term ‘‘deposit’’— 
(A) has the same meaning as in section 
3(l) of the Federal Deposit Insurance Act; and 
(B) includes a share in a member account 
(as defined in section 101(5) of the Federal 
Credit Union Act) at a credit union. 
(13) DEPOSIT-TAKING
ACTIVITY.—The term 
‘‘deposit-taking activity’’ means— 
(A) the acceptance of deposits, the provi-
sion of other services related to the acceptance 
of deposits, or the maintenance of deposit ac-
counts; 
(B) the acceptance of money, the provision 
of other services related to the acceptance of 
money, or the maintenance of members’ share 
accounts by a credit union; or 
(C) the receipt of money or its equivalent, 
as the Agency may determine by regulation or 
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order, received or held by the covered person 
(or an agent for the person) for the purpose of 
facilitating a payment or transferring funds or 
value of funds by a consumer to a third party. 
For the purposes of this title, the Agency may deter-
mine that the term ‘‘deposit-taking activity’’ includes 
the receipt of money or its equivalent in connection 
with the sale or issuance of any payment instrument 
or stored value product or service. 
(14) DESIGNATED TRANSFER DATE.—The term 
‘‘designated transfer date’’ has the meaning pro-
vided in section 162. 
(15) DIRECTOR.—The term ‘‘Director’’ means 
the Director of the Agency. 
(16) ENUMERATED
CONSUMER
LAWS.—The 
term ‘‘enumerated consumer laws’’ means each of 
the following: 
(A) The Alternative Mortgage Transaction 
Parity Act (12 U.S.C. 3801 et seq.). 
(B) The Electronic Funds Transfer Act 
(15 U.S.C. 1693 et seq.) 
(C) The Equal Credit Opportunity Act (15 
U.S.C. 1691 et seq.). 
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(D) The Fair Credit Reporting Act (15 
U.S.C. 1681 et seq.), except with respect to sec-
tions 615(e), 624, and 628. 
(E) The Fair Debt Collection Practices Act 
(15 U.S.C. 1692 et seq.). 
(F) Subsections (c), (d), (e), and (f) of sec-
tion 43 of the Federal Deposit Insurance Act 
(12 U.S.C. 1831t). 
(G) Sections 502, 503, 504, 505, 506, 
507, 508, and 509 of the Gramm-Leach-Bliley 
Act (15 U.S.C. 6802 et seq.). 
(H) The Home Mortgage Disclosure Act 
(12 U.S.C. 2801 et seq.). 
(I) The Real Estate Settlement Procedures 
Act (12 U.S.C. 2601 et seq.). 
(J) The Secure and Fair Enforcement for 
Mortgage Licensing Act (12 U.S.C. 5101 et 
seq.). 
(K) The Truth in Lending Act (15 U.S.C. 
1601 et seq.). 
(L) The Truth in Savings Act (12 U.S.C. 
4301 et seq.). 
(17) FEDERAL BANKING AGENCY.—The term 
‘‘Federal banking agency’’ means the Board of Gov-
ernors, the Comptroller of the Currency, the Direc-
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tor of the Office of Thrift Supervision, the Federal 
Deposit Insurance Corporation, or the National 
Credit Union Administration and the term ‘‘Federal 
banking agencies’’ means all of those agencies. 
(18) FINANCIAL ACTIVITY.—The term ‘‘finan-
cial activity’’ means any of the following activities: 
(A) Deposit-taking activities. 
(B) Extending credit and servicing loans, 
including— 
(i) acquiring, brokering, or servicing 
loans or other extensions of credit; 
(ii) engaging in any other activity 
usual in connection with extending credit 
or servicing loans, including performing 
appraisals of real estate and personal prop-
erty and selling or servicing credit insur-
ance or mortgage insurance. 
(C) Check-guaranty services, including— 
(i) authorizing a subscribing merchant 
to accept personal checks tendered by the 
merchant’s customers in payment for 
goods and services; and 
(ii) purchasing from a subscribing 
merchant validly authorized checks that 
are subsequently dishonored. 
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(D) Collecting, analyzing, maintaining, and 
providing consumer report information or other 
account information by covered persons, includ-
ing information relating to the credit history of 
consumers and providing the information to a 
credit grantor who is considering a consumer 
application for credit or who has extended cred-
it to the borrower. 
(E) Collection of debt related to any con-
sumer financial product or service. 
(F) Providing real estate settlement serv-
ices, including providing title insurance. 
(G) Leasing personal or real property or 
acting as agent, broker, or adviser in leasing 
such property if— 
(i) the lease is on a non-operating 
basis; 
(ii) the initial term of the lease is at 
least 90 days; and 
(iii) in the case of leases involving real 
property, at the inception of the initial 
lease, the transaction is intended to result 
in ownership of the leased property to be 
transferred to the lessee, subject to stand-
ards prescribed by the Agency. 
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(H) Acting as an investment adviser to any 
person (not subject to regulation by or required 
to register with the Commodity Futures Trad-
ing Commission or the Securities and Exchange 
Commission). 
(I) Acting as financial adviser to any per-
son, including— 
(i) providing financial and other re-
lated advisory services; 
(ii) providing educational courses, and 
instructional materials to consumers on in-
dividual financial management matters; or 
(iii) providing credit counseling, tax- 
planning or tax-preparation services to any 
person. 
(J) Financial data processing, including 
providing data processing and data trans-
mission services, facilities (including data proc-
essing and data transmission hardware, soft-
ware, documentation, or operating personnel), 
databases, advice, and access to such services, 
facilities, or databases by any technological 
means, if— 
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(i) the data to be processed or fur-
nished are financial, banking, or economic; 
and 
(ii) the hardware provided in connec-
tion therewith is offered only in conjunc-
tion with software designed and marketed 
for the processing and transmission of fi-
nancial, banking, or economic data, and 
where the general purpose hardware does 
not constitute more than 30 percent of the 
cost of any packaged offering. 
(K) Money transmitting. 
(L) Sale or issuance of stored value. 
(M) Acting as a money services business. 
(N) Acting as a custodian of money or any 
financial instrument. 
(O) Any other activity that the Agency de-
fines, by regulation, as a financial activity for 
the purposes of this title, except that the Agen-
cy shall not define engaging in the business of 
insurance as a financial activity (other than 
with respect to credit insurance, mortgage in-
surance, or title insurance, as described in this 
section). 
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(19) FINANCIAL PRODUCT OR SERVICE.—The 
term ‘‘financial product or service’’ means any prod-
uct or service that, directly or indirectly, results 
from or is related to engaging in 1 or more financial 
activities. 
(20) FOREIGN EXCHANGE.—The term ‘‘foreign 
exchange’’ means the exchange, for compensation, of 
currency of the United States or of a foreign govern-
ment for currency of another government. 
(21) INSURED DEPOSITORY INSTITUTION.—The 
term ‘‘insured depository institution’’ has the same 
meaning as in section 3 of the Federal Deposit In-
surance Act. 
(22) MONEY SERVICES BUSINESS.—The term 
‘‘money services business’’ means a covered person 
that— 
(A) receives currency, monetary value, or 
payment instruments for the purpose of ex-
changing or transmitting the same by any 
means, including transmission by wire, fac-
simile, electronic transfer, courier, the Internet, 
or through bill payment services, or other busi-
nesses that facilitate third-party transfers with-
in the United States or to or from the United 
States; or 
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(B) issues payment instruments or stored 
value. 
(23) 
MONEY
TRANSMITTING.—The 
term 
‘‘money transmitting’’ means the receipt by a cov-
ered person of currency, monetary value, or payment 
instruments for the purpose of transmitting the 
same to any third-party by any means, including 
transmission by wire, facsimile, electronic transfer, 
courier, the Internet, or through bill payment serv-
ices. 
(24) PAYMENT INSTRUMENT.—The term ‘‘pay-
ment instrument’’ means a check, draft, warrant, 
money order, traveler’s check, electronic instrument, 
or other instrument, payment of money, or monetary 
value (other than currency). 
(25) PERSON.—The term ‘‘person’’ means an 
individual, partnership, company, corporation, asso-
ciation (incorporated or unincorporated), trust, es-
tate, cooperative organization, or other entity. 
(26) PERSON REGULATED BY THE COMMODITY 
FUTURES TRADING COMMISSION.—The term ‘‘person 
regulated by the Commodity Futures Trading Com-
mission’’ means any futures commission merchant, 
commodity trading adviser, commodity pool oper-
ator, or introducing broker that is subject to the ju-
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risdiction of the Commodity Futures Trading Com-
mission under the Commodity Exchange Act, but 
only to the extent that the person acts in such ca-
pacity. 
(27) PERSON REGULATED BY THE SECURITIES 
AND
EXCHANGE
COMMISSION.—The term ‘‘person 
regulated by the Securities and Exchange Commis-
sion’’ means— 
(A) a broker or dealer that is required to 
be registered under the Securities Exchange Act 
of 1934; 
(B) an investment adviser that is required 
to be registered under the Investment Advisers 
Act of 1940; or 
(C) an investment company that is re-
quired to be registered under the Investment 
Company Act of 1940— 
but only to the extent that the person acts in a reg-
istered capacity. 
(28) PROVISION
OF
A
CONSUMER
FINANCIAL 
PRODUCT OR SERVICE.—The term ‘‘provision of (or 
providing) a consumer financial product or service’’ 
means the advertisement, marketing, solicitation, 
sale, disclosure, delivery, or account maintenance or 
servicing of a consumer financial product or service. 
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(29) 
SECRETARY.—The 
term 
‘‘Secretary’’ 
means the Secretary of the Treasury. 
(30) STANDARD CONSUMER FINANCIAL PROD-
UCT OR SERVICE.—The term ‘‘standard consumer fi-
nancial product or service’’ means a consumer finan-
cial product or service containing terms, conditions, 
and features defined by the Agency. 
(31) STATE.—The term ‘‘State’’ means any 
State, territory, or possession of the United States, 
the District of Columbia, Commonwealth of Puerto 
Rico, Commonwealth of the Northern Mariana Is-
lands, Guam, American Samoa, or the United States 
Virgin Islands. 
(32) STORED VALUE.—The term ‘‘stored value’’ 
means funds or monetary value represented in any 
electronic format, whether or not specially encrypted, 
and stored or capable of storage on electronic media 
in such a way as to be retrievable and transferred 
electronically, and includes a prepaid debit card or 
product, or any other similar product, regardless of 
whether the amount of the funds or monetary value 
may be increased or reloaded. 
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Subtitle A—Establishment of the 
Agency 
SEC. 111. ESTABLISHMENT OF THE CONSUMER FINANCIAL 
PROTECTION AGENCY. 
(a) AGENCY ESTABLISHED.—There is established the 
Consumer Financial Protection Agency as an independent 
agency in the executive branch to regulate the provision 
of consumer financial products or services under this title, 
the enumerated consumer laws, and the authorities trans-
ferred under subtitles F and H. 
(b) PRINCIPAL OFFICE.—The principal office of the 
Agency shall be located in the city of Washington, District 
of Columbia, at 1 or more sites. 
SEC. 112. BOARD. 
(a) COMPOSITION OF THE BOARD.—The Agency shall 
have a Board that is composed of 5 members as follows: 
(1) 4 members of the Board who shall be ap-
pointed by the President, by and with the advice and 
consent of the Senate— 
(A) from among individuals who are citi-
zens of the United States; and 
(B) who have a strong competencies and 
experiences related to consumer financial prod-
ucts or services; and 
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(2) the head of the agency responsible for char-
tering and regulating national banks. 
(b) DIRECTOR OF THE AGENCY.—From among the 
appointed Board members, the President shall designate 
1 member of the Board to serve as the Director and the 
Director shall be the chief executive of the Agency. 
(c) TERMS OF APPOINTED BOARD MEMBERS.— 
(1) IN GENERAL.—An appointed Board mem-
ber, including the Director of the Agency, shall serve 
for a term of 5 years. 
(2) REMOVAL FOR CAUSE.—The President may 
remove any appointed Board member for ineffi-
ciency, neglect of duty, or malfeasance in office. 
(3) VACANCIES.—Any member of the Board ap-
pointed to fill a vacancy occurring before the expira-
tion of the term to which that member’s predecessor 
was appointed (including the Director of the Agen-
cy) shall be appointed only for the remainder of the 
term. 
(4) CONTINUATION
OF
SERVICE.—Each ap-
pointed Board member may continue to serve after 
the expiration of the term of office to which that 
member was appointed until a successor has been 
appointed by the President and confirmed by the 
Senate. 
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(5) INITIAL APPOINTMENTS STAGGERED.—The 
appointed Board members (including the Director of 
the Agency) shall serve staggered terms, which ini-
tially shall be established by the President for terms 
of 2, 3, 4, and 5 years, respectively. 
(d) COMPENSATION.— 
(1) DIRECTOR.—The Director shall receive 
compensation at the rate prescribed for Level I of 
the Executive Schedule under section 5313 of title 
5, United States Code. 
(2) OTHER APPOINTED BOARD MEMBERS.—The 
3 other appointed Board members shall each receive 
compensation at the rate prescribed for Level II of 
the Executive Schedule under section 5314 of title 
5, United States Code. 
SEC. 113. EXECUTIVE AND ADMINISTRATIVE POWERS. 
(a) POWERS.—The Board may exercise all executive 
and administrative functions of the Agency, including to— 
(1) establish rules for conducting the Agency’s 
general business in a manner not inconsistent with 
this title; 
(2) bind the Agency and enter into contracts; 
(3) direct the establishment of and maintain di-
visions or other offices within the Agency in order to 
fulfill the responsibilities of this title, the enumer-
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ated consumer laws, and the authorities transferred 
under subtitles F and H, and to satisfy the require-
ments of other applicable law; 
(4) coordinate and oversee the operation of all 
administrative, enforcement, and research activities 
of the Agency; 
(5) adopt and use a seal; 
(6) determine the character of and the necessity 
for the Agency’s obligations and expenditures, and 
the manner in which they shall be incurred, allowed, 
and paid; 
(7) delegate authority, at the Agency’s lawful 
discretion, to the Director or to a member of the 
Board or to any officer or employee of the Agency 
to take action under any provision of this title or 
under other applicable law; 
(8) to implement this title and the Agency’s au-
thorities under the enumerated consumer laws and 
under subtitles F and H through rules, orders, guid-
ance, interpretations, statements of policy, examina-
tions, and enforcement actions; and 
(9) perform such other functions as may be au-
thorized or required by law. 
(b) TRANSACTING BUSINESS.— 
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(1) QUORUM.—3 members of the Board shall 
constitute a quorum for the transaction of business, 
except that if only 3 members of the Board are serv-
ing because of vacancies, 2 members of the Board 
shall constitute a quorum for the transaction of 
business. 
(2) VOTING.—Other than acts performed under 
delegated authority, the Board shall act through a 
majority vote of its members assembled. 
SEC. 114. ADMINISTRATION. 
(a) OFFICERS.—The Agency shall appoint the fol-
lowing officials: 
(1) A secretary, who shall be charged with 
maintaining the records of the Agency and per-
forming such other activities as the Board directs. 
(2) A general counsel, who shall be charged 
with overseeing the legal affairs of the Agency and 
performing such other activities as the Board di-
rects. 
(3) An inspector general, who shall have the au-
thority and functions of an inspector general of a 
designated Federal entity under the Inspector Gen-
eral Act of 1978 (5 U.S.C. App. 3). 
(b) PERSONNEL.— 
(1) APPOINTMENT.— 
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(A) IN
GENERAL.—The Agency may fix 
the number of, and appoint and direct, all em-
ployees of the Agency. 
(B) EXPEDITED HIRING.—During the 2- 
year period beginning on the date of the enact-
ment of this Act, the Agency may appoint, 
without regard to the provisions of sections 
3309 through 3318, of title 5, United States 
Code, candidates directly to positions for which 
public notice has been given. 
(2) COMPENSATION.— 
(A) PAY.—The Agency shall fix, adjust, 
and administer the pay for all employees of the 
Agency without regard to the provisions of 
chapter 51 or subchapter III of chapter 53 of 
title 5, United States Code. 
(B) BENEFITS.—The Agency may provide 
additional benefits to Agency employees if the 
same type of benefits are then being provided 
by the Board of Governors or, if not then being 
provided, could be provided by the Board of 
Governors under applicable provisions of law, 
rule, or regulation. 
(C) MINIMUM
STANDARD.—The Agency 
shall at all times provide compensation and ben-
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efits to classes of employees that, at a min-
imum, are equivalent to the compensation and 
benefits provided by the Board of Governors for 
the corresponding class of employees in any fis-
cal year. 
(c) SPECIFIC FUNCTIONAL UNITS.— 
(1) RESEARCH.—The Agency shall establish a 
unit whose functions shall include researching, ana-
lyzing, and reporting on— 
(A) current and prospective developments 
in markets for consumer financial products or 
services, including market areas of alternative 
consumer financial products or services with 
high growth rates; 
(B) consumer awareness, understanding, 
and use of disclosures and communications re-
garding consumer financial products or services; 
(C) 
consumer 
awareness 
and 
under-
standing of costs, risks, and benefits of con-
sumer financial products or services; and 
(D) consumer behavior with respect to con-
sumer financial products or services. 
(2) COMMUNITY
AFFAIRS.—The Agency shall 
establish a unit whose functions shall include pro-
viding information, guidance, and technical assist-
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ance regarding the provision of consumer financial 
products or services to traditionally underserved con-
sumers and communities. 
(3) CONSUMER
COMPLAINTS.—The Agency 
shall establish a unit whose functions shall include— 
(A) establishing a central database for col-
lecting and tracking information on consumer 
complaints about consumer financial products 
or services and resolution of complaints; and 
(B) sharing data and coordinating con-
sumer complaints with Federal banking agen-
cies, other Federal agencies, and State regu-
lators. 
SEC. 115. CONSUMER ADVISORY BOARD. 
(a) ESTABLISHMENT REQUIRED.—The Agency shall 
establish a Consumer Advisory Board to advise and con-
sult with the Agency in the exercise of its functions under 
this title, the enumerated consumer laws, and to provide 
information on emerging practices in the consumer finan-
cial products or services industry. 
(b) MEMBERSHIP.—In appointing the members of 
the Consumer Advisory Board, the Agency shall seek to 
assemble experts in financial services, community develop-
ment, and consumer financial products or services and 
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seek representation of the interests of covered persons and 
consumers. 
(c) MEETINGS.—The Consumer Advisory Board shall 
meet from time to time at the call of the Agency, but, 
at a minimum, shall meet at least twice in each year. 
(d) COMPENSATION AND TRAVEL EXPENSES.—Mem-
bers of the Consumer Advisory Board who are not full- 
time employees of the United States shall— 
(1) be entitled to receive compensation at a rate 
fixed by the Agency while attending meetings of the 
Consumer Advisory Board, including travel time; 
and 
(2) be allowed travel expenses, including trans-
portation and subsistence, while away from their 
homes or regular places of business. 
SEC. 116. COORDINATION. 
(a) COORDINATION WITH OTHER FEDERAL AGEN-
CIES AND STATE REGULATORS.—The Agency shall coordi-
nate with the Securities and Exchange Commission, the 
Commodity Futures Trading Commission, and other Fed-
eral agencies and State regulators, as appropriate, to pro-
mote consistent regulatory treatment of consumer and in-
vestment products and services. 
(b) COORDINATION OF CONSUMER EDUCATION INI-
TIATIVES.— 
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(1) IN GENERAL.—The Agency shall coordinate 
with each agency that is a member of the Financial 
Literacy and Education Commission established by 
the Financial Literacy and Education Improvement 
Act (20 U.S.C. 9701 et seq.) to assist each agency 
in enhancing its existing financial literacy and edu-
cation initiatives to better achieve the goals in para-
graph (2) and to ensure the consistency of such ini-
tiatives across Federal agencies. 
(2) GOALS OF COORDINATION.—In coordinating 
with the agencies described in paragraph (1), the 
Agency shall seek to improve efforts to educate con-
sumers about financial matters generally, the man-
agement of their own financial affairs, and their 
judgments about the appropriateness of certain fi-
nancial products. 
SEC. 117. REPORTS TO THE CONGRESS. 
(a) REPORTS REQUIRED.—The Agency shall prepare 
and submit to the President and the appropriate commit-
tees of the Congress a report at the beginning of each reg-
ular session of the Congress, beginning with the session 
following the designated transfer date. 
(b) CONTENTS.—The reports required by subsection 
(a) shall include— 
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(1) a list of the significant rules and orders 
adopted by the Agency, as well as other significant 
initiatives conducted by the Agency, during the pre-
ceding year and the Agency’s plan for rules, orders, 
or other initiatives to be undertaken during the up-
coming period; 
(2) an analysis of complaints about consumer 
financial products or services that the Agency has 
received and collected in its central database on 
complaints during the preceding year; 
(3) a list, with a brief statement of the issues, 
of the public supervisory and enforcement actions to 
which the Agency is a party (including adjudication 
proceedings conducted under subtitle E) during the 
preceding year; and 
(4) an appraisal of significant actions, including 
actions under Federal or State law, by State attor-
neys general or State regulators relating to this title, 
the authorities transferred under subtitles F and H, 
and the enumerated consumer laws. 
SEC. 118. FUNDING; FEES AND ASSESSMENTS; PENALTIES 
AND FINES. 
(a) AUTHORIZATION OF APPROPRIATIONS.—For the 
purposes of carrying out the authorities granted in this 
title and the enumerated consumer laws and transferred 
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under subtitles F and H, there are appropriated to the 
Agency such sums as are necessary. Notwithstanding any 
other provision of law, such amounts shall be subject to 
apportionment under section 1517 of title 31, United 
States Code, and restrictions that generally apply to the 
use of appropriated funds in title 31, United States Code, 
and other laws. 
(b) FEES
AND ASSESSMENTS
ON COVERED PER-
SONS.— 
(1) RECOVERY
OF
EXPENDED
FUNDS.—The 
Agency shall recover the amount of funds expended 
by the Agency under this title, through the collection 
of annual fees or assessments on covered persons. 
(2) RULEMAKING.—The Agency shall prescribe 
regulations to govern the collection of fees and as-
sessments. Such regulations shall specify and define 
the basis of fees or assessments (such as the out-
standing volume of consumer credit accounts, total 
assets under management, or consumer financial 
transactions), the amount and frequency of fees or 
assessments, and such other factors that the Agency 
deems appropriate. 
(3) FEES
AND
ASSESSMENTS
AS
MISCELLA-
NEOUS
RECEIPTS.—All fees and assessments col-
lected under this title, the authorities transferred 
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under subtitles F and H, or any enumerated con-
sumer law shall be deposited into the Treasury as 
miscellaneous receipts. 
(c) PENALTIES AND FINES.— 
(1) 
ESTABLISHMENT
OF
VICTIMS
RELIEF 
FUND.—There is established in the Treasury of the 
United States a fund to be known as the ‘‘Consumer 
Financial Protection Agency Civil Penalty Fund’’ 
(referred to in this section as the ‘‘Fund’’). If the 
Agency obtains a civil penalty against any person in 
any judicial or administrative action under this title, 
the authorities transferred under subtitles F and H, 
or any enumerated consumer law, the Agency shall 
deposit into the Fund the amount of the penalty col-
lected. 
(2) PAYMENT
TO
VICTIMS.—Amounts in the 
Fund shall be available to the Agency, without fiscal 
year limitation, for payments to the victims of activi-
ties for which civil penalties have been imposed 
under this title, the authorities transferred under 
subtitles F and H, or any enumerated consumer law. 
SEC. 119. EFFECTIVE DATE. 
This subtitle shall take effect on the date of the en-
actment of this Act. 
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Subtitle B—General Powers of the 
Agency 
SEC. 121. MANDATE AND OBJECTIVES. 
(a) MANDATE.—The Agency shall seek to promote 
transparency, simplicity, fairness, accountability, and ac-
cess in the market for consumer financial products or serv-
ices. 
(b) OBJECTIVES.—The Agency is authorized to exer-
cise its authorities granted in this title, in the enumerated 
consumer laws, and transferred under subtitles F and H 
for the purposes of ensuring that— 
(1) consumers have, understand, and can use 
the information they need to make responsible deci-
sions about consumer financial products or services; 
(2) consumers are protected from abuse, unfair-
ness, deception, and discrimination; 
(3) markets for consumer financial products or 
services operate fairly and efficiently with ample 
room for sustainable growth and innovation; and 
(4) traditionally underserved consumers and 
communities have access to financial services. 
SEC. 122. AUTHORITIES. 
(a) IN GENERAL.—The Agency is authorized to exer-
cise its authorities granted in this title, in the enumerated 
consumer laws, and transferred under subtitles F and H, 
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to administer, enforce, and otherwise implement the provi-
sions of this title, the authorities transferred in subtitles 
F and H, and the enumerated consumer laws. 
(b) RULEMAKING, ORDERS, AND GUIDANCE.— 
(1) IN GENERAL.—The Agency may prescribe 
rules and issue orders and guidance as may be nec-
essary or appropriate to enable it to administer and 
carry out the purposes and objectives of this title, 
the authorities transferred under subtitles F and H, 
and the enumerated consumer laws, and to prevent 
evasions thereof. 
(2) STANDARDS
FOR
RULEMAKING.—In pre-
scribing a rule under this title or pursuant to the 
authorities transferred under subtitles F and H or 
the enumerated consumer laws, the Agency shall— 
(A) consider the potential benefits and 
costs to consumers and covered persons, includ-
ing the potential reduction of consumers’ access 
to consumer financial products or services, re-
sulting from such rule; and 
(B) consult with the Federal banking agen-
cies, or other Federal agencies, as appropriate, 
regarding the consistency of a proposed rule 
with prudential, market, or systemic objectives 
administered by such agencies. 
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(3) EXEMPTIONS.— 
(A) IN GENERAL.—The Agency, by rule or 
order, may conditionally or unconditionally ex-
empt any covered person or any consumer fi-
nancial product or service or any class of cov-
ered persons or consumer financial products or 
services, from any provision of this title, any 
enumerated consumer law, or from any rule 
thereunder, as the Agency deems necessary or 
appropriate to carry out the purposes and ob-
jectives of this title taking into consideration 
the factors in subparagraph (B). 
(B) FACTORS.—In issuing an exemption 
by rule or order as permitted in subparagraph 
(A), the Agency shall as appropriate take into 
consideration the following— 
(i) total assets of the covered person; 
(ii) the volume of transactions involv-
ing consumer financial products or services 
in which the covered person engages; 
(iii) the extent to which the covered 
person engages in 1 or more financial ac-
tivities; and 
(iv) existing laws or regulations which 
are applicable to the consumer financial 
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product or service and the extent to which 
such laws or regulations provide consumers 
with adequate protections. 
(c) EXAMINATIONS AND REPORTS.— 
(1) IN GENERAL.—The Agency may on a peri-
odic basis examine, or require reports from, a cov-
ered person for purposes of ensuring compliance 
with the requirements of this title, the enumerated 
consumer laws, and any regulations prescribed by 
the Agency under this title or pursuant to the au-
thorities transferred under subtitles F and H, and 
enforcing compliance with such requirements. 
(2) CONTENT OF REPORTS.—The reports au-
thorized in paragraph (1) may include such informa-
tion as necessary to keep the Agency informed as 
to— 
(A) the compliance systems or procedures 
of the covered person or any affiliate thereof, 
with applicable provisions of this title or any 
other law that the Agency has jurisdiction to 
enforce; and 
(B) matters related to the provision of con-
sumer financial products or services including 
the servicing or maintenance of accounts or ex-
tensions of credit. 
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(3) USE OF EXISTING REPORTS.—In general, 
the Agency shall, to the fullest extent possible, use— 
(A) reports that a covered person, or any 
affiliate thereof, has provided or been required 
to provide to a Federal or State agency; and 
(B) information that has been reported 
publicly. 
(4) REPORTS FROM NONDEPOSITORY COVERED 
PERSONS.—The Agency may require reports regard-
ing financial condition from covered persons which 
are not subject to the jurisdiction of a Federal bank-
ing agency or a comparable State regulator for the 
purpose of assessing the ability of such person to 
perform its obligations to consumers. 
(5) ACCESS BY THE AGENCY TO REPORTS OF 
OTHER REGULATORS.— 
(A) EXAMINATION AND FINANCIAL CONDI-
TION REPORTS.—Upon providing reasonable as-
surances of confidentiality, the Agency shall 
have access to any report of examination or fi-
nancial condition made by a Federal banking 
agency or other Federal agency having super-
vision of a covered person, and to all revisions 
made to any such report. 
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(B) PROVISION
OF
OTHER
REPORTS
TO 
AGENCY.—In addition to the reports described 
in paragraph (a), a Federal banking agency 
may, in its discretion, furnish to the Agency 
any other report or other confidential super-
visory information concerning any insured de-
pository institution, any credit union, or other 
entity examined by such agency under authority 
of any Federal law. 
(6) ACCESS
BY
OTHER
REGULATORS
TO
RE-
PORTS OF THE AGENCY.—Upon providing reasonable 
assurances of confidentiality, a Federal banking 
agency, a State regulator, or any other Federal 
agency having supervision of a covered person shall 
have access to any report of examination made by 
the Agency with respect to the covered person, and 
to all revisions made to any such report. 
(7) PRESERVATION OF AUTHORITY.—No provi-
sion in paragraph (3) shall be construed as pre-
venting the Agency from conducting an examination 
authorized by this title or under the authorities 
transferred under subtitles F and H or pursuant to 
any enumerated consumer law. 
(d) EXCLUSIVE RULEMAKING
AND EXAMINATION 
AUTHORITY.—Notwithstanding any other provision of 
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Federal law other than subsection (f), to the extent that 
a Federal law authorizes the Agency and another Federal 
agency to prescribe regulations, issue guidance, conduct 
examinations, or require reports under that law for pur-
poses of assuring compliance with this title, any enumer-
ated consumer law, the laws for which authorities were 
transferred under subtitles F and H, and any regulations 
prescribed under this title or pursuant to any such author-
ity, the Agency shall have the exclusive authority to pre-
scribe regulations, issue guidance, conduct examinations, 
require reports, or issue exemptions with regard to any 
person subject to that law. 
(e) PRIMARY ENFORCEMENT AUTHORITY.— 
(1) THE AGENCY TO HAVE PRIMARY ENFORCE-
MENT AUTHORITY.—To the extent that a Federal 
law authorizes the Agency and another Federal 
agency to enforce that law, the Agency shall have 
primary authority to enforce that Federal law with 
respect to any person in accordance with this sub-
section. 
(2) REFERRAL.—Any Federal agency author-
ized to enforce a Federal law described in paragraph 
(1) may recommend in writing to the Agency that 
the Agency initiate an enforcement proceeding as 
the Agency is authorized by that Federal law or by 
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this title. The recommendation shall be accompanied 
by a written explanation of the concerns giving rise 
to the recommendation. 
(3) BACKSTOP ENFORCEMENT AUTHORITY OF 
OTHER FEDERAL AGENCY.—If the Agency does not, 
before the end of the 120-day period beginning on 
the date on which the Agency receives a rec-
ommendation under paragraph (2), initiate an en-
forcement proceeding, the other agency may initiate 
an enforcement proceeding as permitted by that 
Federal law. 
(f) EXCEPTIONS.— 
(1) DEPARTMENT
OF
JUSTICE.—Nothing in 
this title shall affect the authorities of the Depart-
ment of Justice. 
(2) PERSONS REGULATED BY THE SECURITIES 
AND EXCHANGE COMMISSION.— 
(A) IN
GENERAL.—No provision of this 
title shall be construed as altering, amending, 
or affecting the authority of the Securities and 
Exchange Commission to adopt rules, initiate 
enforcement proceedings, or take any other ac-
tion with respect to a person regulated by the 
Securities and Exchange Commission. The 
Agency shall have no authority to exercise any 
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power to enforce this title with respect to a per-
son regulated by the Securities and Exchange 
Commission. 
(B) 
CONSULTATION
AND
COORDINA-
TION.—Notwithstanding subparagraph (A), the 
Securities and Exchange Commission shall con-
sult and coordinate with the Agency with re-
spect to any rule (including any advance notice 
of proposed rulemaking) regarding an invest-
ment product or service that is the same type 
of product as, or that competes directly with, a 
consumer financial product or service that is 
subject to the jurisdiction of the Agency under 
this title or under any other law. 
(3) PERSONS REGULATED BY THE COMMODITY 
FUTURES TRADING COMMISSION.— 
(A) IN
GENERAL.—No provision of this 
title shall be construed as altering, amending, 
or affecting the authority of the Commodity 
Futures Trading Commission to adopt rules, 
initiate enforcement proceedings, or take any 
other action with respect to a person regulated 
by the Commodity Futures Trading Commis-
sion. The Agency shall have no authority to ex-
ercise any power to enforce this title with re-
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spect to a person regulated by the Commodity 
Futures Trading Commission. 
(B) 
CONSULTATION
AND
COORDINA-
TION.—Notwithstanding subparagraph (A), the 
Commodity Futures Trading Commission shall 
consult and coordinate with the Agency with re-
spect to any rule (including any advance notice 
of proposed rulemaking) regarding a product or 
service that is the same type of product as, or 
that competes directly with, a consumer finan-
cial product or service that is subject to the ju-
risdiction of the Agency under this title or 
under any other law. 
(g) NO AUTHORITY TO IMPOSE USURY LIMIT.—No 
provision of this title shall be construed as conferring au-
thority on the Agency to establish a usury limit applicable 
to an extension of credit offered or made by a covered per-
son to a consumer, unless explicitly authorized by law. 
SEC. 123. COLLECTION OF INFORMATION; CONFIDEN-
TIALITY RULES. 
(a) COLLECTION OF INFORMATION.— 
(1) IN GENERAL.—In conducting research on 
the provision of consumer financial products or serv-
ices, the Agency shall have the power to gather in-
formation from time to time regarding the organiza-
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tion, business conduct, and practices of covered per-
sons. 
(2) SPECIFIC AUTHORITY.—In order to gather 
such information, the Agency shall have the power— 
(A) to gather and compile information; 
(B) to require persons to file with the 
Agency, in such form and within such reason-
able period of time as the Agency may pre-
scribe, by regulation or order, annual or special 
reports, or answers in writing to specific ques-
tions, furnishing information the Agency may 
require; and 
(C) to make public such information ob-
tained by it under this section as is in the pub-
lic interest in reports or otherwise in the man-
ner best suited for public information and use. 
(b) CONFIDENTIALITY RULES.—The Agency shall 
prescribe regulations regarding the confidential treatment 
of information obtained from persons in connection with 
the exercise of its authorities under this title and the enu-
merated consumer laws and the authorities transferred 
under subtitles F and H. 
SEC. 124. MONITORING; ASSESSMENTS OF SIGNIFICANT 
RULES; REPORTS. 
(a) MONITORING.— 
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(1) IN GENERAL.—The Agency shall monitor 
for risks to consumers in the provision of consumer 
financial products or services, including develop-
ments in markets for such products or services. 
(2) MEANS OF MONITORING.—Such monitoring 
may be conducted by examinations of covered per-
sons, analysis of reports obtained from covered per-
sons, assessment of consumer complaints, surveys 
and interviews of covered persons and consumers, 
and review of available databases. 
(3) CONSIDERATIONS.—In allocating its re-
sources to perform the monitoring required by this 
section, the Agency may consider, among other fac-
tors— 
(A) likely risks and costs to consumers as-
sociated with buying or using a type of con-
sumer financial product or service; 
(B) consumers’ understanding of the risks 
of a type of consumer financial product or serv-
ice; 
(C) the state of the law that applies to the 
provision of a consumer financial product or 
service, including the extent to which the law is 
likely to adequately protect consumers; 
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(D) rates of growth in the provision of a 
consumer financial product or service; 
(E) extent, if any, to which the risks of a 
consumer financial product or service may dis-
proportionately affect traditionally underserved 
consumers, if any; or 
(F) types, number, and other pertinent 
characteristics of covered persons that provide 
the product or service. 
(4) REPORTS.—The Agency shall publish at 
least 1 report of significant findings of its moni-
toring required by paragraph (1) in each calendar 
year, beginning in the calendar year that is 1 year 
after the designated transfer date. 
(b) ASSESSMENT OF SIGNIFICANT RULES.— 
(1) IN GENERAL.—The Agency shall conduct an 
assessment of each significant regulation prescribed 
or order issued by the Agency under this title, under 
the authorities transferred under subtitles F and H 
or pursuant to any enumerated consumer law that 
addresses, among other relevant factors, the effec-
tiveness of the regulation in meeting the purposes 
and objectives of this Act and the specific goals stat-
ed by the Agency. 
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(2) BASIS FOR ASSESSMENT.—The assessment 
shall reflect available evidence and any data that the 
Agency reasonably may collect. 
(3) REPORTS.—The Agency shall publish a re-
port of its assessment not later than 3 years after 
the effective date of the regulation or order, unless 
the Agency determines that 3 years is not sufficient 
time to study or review the impact of the regulation, 
but in no event shall the Agency publish a report 
thereof more than 5 years after the effective date of 
the regulation or order. 
(4) PUBLIC
COMMENTED
REQUIRED.—Before 
publishing a report of its assessment, the Agency 
shall invite public comment on recommendations for 
modifying, expanding, or eliminating the newly 
adopted significant regulation or order. 
(c) INFORMATION GATHERING.—In conducting any 
monitoring or assessment required by this section, the 
Agency may gather information through a variety of meth-
ods, including by conducting surveys or interviews of con-
sumers. 
SEC. 125. AUTHORITY TO RESTRICT MANDATORY PRE-DIS-
PUTE ARBITRATION. 
The Agency, by regulation, may prohibit or impose 
conditions or limitations on the use of agreements between 
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a covered person and a consumer that require the con-
sumer to arbitrate any future dispute between the parties 
arising under this title or any enumerated consumer law 
if the Agency finds that such prohibition, imposition of 
conditions, or limitations are in the public interest and for 
the protection of consumers. 
SEC. 126. EFFECTIVE DATE. 
This subtitle shall take effect on the designated 
transfer date. 
Subtitle C—Specific Authorities 
SEC. 131. PROHIBITING UNFAIR, DECEPTIVE, OR ABUSIVE 
ACTS OR PRACTICES. 
(a) IN GENERAL.—The Agency may take any action 
authorized under subtitle E to prevent a person from com-
mitting or engaging in an unfair, deceptive, or abusive act 
or practice under Federal law in connection with any 
transaction with a consumer for a consumer financial 
product or service. 
(b) RULEMAKING REQUIRED.— 
(1) IN GENERAL.—The Agency may prescribe 
regulations identifying as unlawful unfair, deceptive, 
or abusive acts or practices in connection with any 
transaction with a consumer for a consumer finan-
cial product or service. 
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(2) INCLUDES PREVENTION MEASURES.—Regu-
lations prescribed under this section may include re-
quirements for the purpose of preventing such acts 
or practices. 
(c) UNFAIRNESS.— 
(1) IN GENERAL.—The Agency shall have no 
authority under this section to declare an act or 
practice in connection with a transaction with a con-
sumer for a consumer financial product or service to 
be unlawful on the grounds that such act or practice 
is unfair unless the Agency has a reasonable basis 
to conclude that the act or practice causes or is like-
ly to cause substantial injury to consumers which is 
not reasonably avoidable by consumers and such 
substantial injury is not outweighed by counter-
vailing benefits to consumers or to competition. 
(2) ESTABLISHED
PUBLIC
POLICY
AS
FAC-
TOR.—In determining whether an act or practice is 
unfair, the Agency may consider established public 
policies as evidence to be considered with all other 
evidence. 
(d) CONSULTATION.—In prescribing a regulation 
under this section, the Agency shall consult with the Fed-
eral banking agencies, or other Federal agencies, as appro-
priate, concerning the consistency of the proposed regula-
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tion with prudential, market, or systemic objectives admin-
istered by such agencies. 
SEC. 132. DISCLOSURES AND COMMUNICATIONS. 
(a) IN GENERAL.—The Agency may prescribe regula-
tions to ensure the appropriate and effective disclosure or 
communication to consumers of the costs, benefits, and 
risks associated with any consumer financial product or 
service. 
(b) REASONABLE DISCLOSURES AND COMMUNICA-
TIONS.—Subject to regulations prescribed by the Agency, 
a covered person shall, with respect to disclosures or com-
munications regarding any consumer financial product or 
service, make or provide to a consumer disclosures and 
communications that— 
(1) balance communication of the benefits of 
the product or service with communication of signifi-
cant risks and costs; 
(2) prominently disclose the significant risks 
and costs, in reasonable proportion to the disclosure 
of the benefits; 
(3) communicate significant risks and costs in 
a clear, concise, and timely manner designed to pro-
mote a consumer’s awareness and understanding of 
the risks and costs, as well as to use the information 
to make financial decisions; and 
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(4) comply with standards prescribed by the 
Agency. 
(c) BASIS FOR RULEMAKING.—In prescribing regula-
tions under this section, the Agency shall consider avail-
able evidence about consumer awareness, understanding 
of, and responses to disclosures or communications about 
the risks, costs, and benefits of consumer financial prod-
ucts or services. 
(d) COMBINED MORTGAGE LOAN DISCLOSURE.— 
Within 1 year after the designated transfer date, the 
Agency shall propose for public comment regulations and 
model disclosures that combine the disclosures required 
under the Truth in Lending Act and the Real Estate Set-
tlement Procedures Act into a single, integrated disclosure 
for mortgage loan transactions covered by those laws, un-
less the Agency determines that any proposal issued by 
the Board of Governors and the Department of Housing 
and Urban Development carries out the same purpose. 
SEC. 133. SALES PRACTICES. 
The Agency may prescribe regulations and issue or-
ders and guidance regarding the manner, settings, and cir-
cumstances for the provision of any consumer financial 
products or services to ensure that the risks, costs, and 
benefits of the products or services, both initially and over 
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the term of the products or services, are fully and accu-
rately represented to consumers. 
SEC. 134. PILOT DISCLOSURES. 
(a) PILOT DISCLOSURES.—The Agency shall estab-
lish standards and procedures for approval of pilot disclo-
sures to be provided or made available by a covered person 
to consumers in connection with the provision of a con-
sumer financial product or service. 
(b) STANDARDS.—The procedures shall provide that 
a pilot disclosure must be limited in time and scope and 
reasonably designed to contribute materially to the under-
standing of consumer awareness and understanding of, 
and responses to, disclosures or communications about the 
risks, costs, and benefits of consumer financial products 
or services. 
(c) TRANSPARENCY.—The procedures shall provide 
for public disclosure of pilots, but the Agency may limit 
disclosure to the extent necessary to encourage covered 
persons to conduct effective pilots. 
SEC. 135. ADOPTING OPERATIONAL STANDARDS TO DETER 
UNFAIR, 
DECEPTIVE, 
OR 
ABUSIVE 
PRAC-
TICES. 
(a) AUTHORITY TO PRESCRIBE STANDARDS.—The 
States are encouraged to prescribe standards applicable 
to covered persons who are not insured depository institu-
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tions or credit unions to deter and detect unfair, deceptive, 
abusive, fraudulent, or illegal transactions in the provision 
of consumer financial products or services, including 
standards for— 
(1) background checks for principals, officers, 
directors, or key personnel of the covered person; 
(2) registration, licensing, or certification; 
(3) bond or other appropriate financial require-
ments to provide reasonable assurance of the ability 
of the covered person to perform its obligations to 
consumers; 
(4) creating and maintaining records of trans-
actions or accounts; or 
(5) procedures and operations of the covered 
person relating to the provision of, or maintenance 
of accounts for, consumer financial products or serv-
ices. 
(b) AGENCY AUTHORITY TO PRESCRIBE STAND-
ARDS.—The Agency may prescribe regulations estab-
lishing minimum standards under this section for any 
class of covered persons other than covered persons which 
are subject to the jurisdiction of a Federal banking agency 
or a comparable State regulator. The Agency may enforce 
under subtitle E compliance with standards adopted by 
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the Agency or a State pursuant to this section for covered 
persons operating in that State. 
(c) CONSULTATION.—In prescribing minimum stand-
ards under this section, the Agency shall consult with the 
State authorities, the Federal banking agencies, or other 
Federal agencies, as appropriate, concerning the consist-
ency of the proposed regulation with prudential, market, 
or systemic objectives administered by such State authori-
ties or such agencies. 
SEC. 136. STANDARD CONSUMER FINANCIAL PRODUCTS OR 
SERVICES. 
(a) CHARACTERISTICS OF STANDARD CONSUMER FI-
NANCIAL PRODUCTS OR SERVICES.—Subject to regula-
tions prescribed by the Agency under this section, a stand-
ard consumer financial product or service is a consumer 
financial product or service that— 
(1) is or can be readily offered by covered per-
sons that offer or seek to offer alternative consumer 
financial products or services; 
(2) is transparent to consumers in its terms 
and features; 
(3) poses lower risks to consumers; 
(4) facilitates comparisons with and assessment 
of the benefits and costs of alternative consumer fi-
nancial products or services; and 
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(5) contains the features or terms defined by 
the Agency for the product or service. 
(b) OFFERING STANDARD CONSUMER FINANCIAL 
PRODUCTS OR SERVICES.— 
(1) IN GENERAL.—The Agency may prescribe 
regulations or issue guidance regarding the offer of 
a standard consumer financial product or service at 
or before the time an alternative consumer financial 
product or service is offered to a consumer, includ-
ing— 
(A) warnings to consumers about the 
heightened risks of alternative consumer finan-
cial products or services; or 
(B) providing the consumer with a mean-
ingful opportunity to decline to obtain the 
standard consumer financial product or service. 
(2) RULEMAKING REGARDING THE OFFERING 
OF STANDARD CONSUMER FINANCIAL PRODUCTS OR 
SERVICES.—The Agency may not require a covered 
person to offer a standard consumer financial prod-
uct or service at or before the time an alternative 
consumer financial product or service is offered to a 
consumer unless the Agency prescribes regulations, 
after notice and comment, regarding the features or 
terms of the product or service. 
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(3) 
GENERAL
APPLICABILITY.—Regulations 
prescribed by the Agency under this section shall 
apply only to any covered person who— 
(A) voluntarily offers or provides a con-
sumer financial product or service that is of the 
same type, or in the same class, as a standard 
consumer financial product or service; or 
(B) maintains an account or has a rela-
tionship with a consumer involving a product or 
service that is substantively similar to the 
standard product or service. 
SEC. 137. DUTIES. 
(a) IN GENERAL.— 
(1) REGULATIONS
ENSURING
FAIR
DEALING 
WITH CONSUMERS.—The Agency shall prescribe reg-
ulations imposing duties on a covered person, or an 
employee of a covered person, or an agent or inde-
pendent contractor for a covered person, who deals 
or communicates directly with consumers in the pro-
vision of a consumer financial product or service, as 
the Agency deems appropriate or necessary to en-
sure fair dealing with consumers. 
(2) CONSIDERATIONS
FOR
DUTIES.—In pre-
scribing such regulations, the Agency shall consider 
whether— 
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(A) the covered person, employee, agent, or 
independent contractor represents implicitly or 
explicitly that the person, employee, agent, or 
contractor is acting in the interest of the con-
sumer with respect to any aspect of the trans-
action; 
(B) the covered person, employee, agent, 
or independent contractor provides the con-
sumer with advice with respect to any aspect of 
the transaction; 
(C) the consumer’s reliance on any advice 
from the covered person, employee, agent, or 
independent contractor would be reasonable and 
justifiable under the circumstances; 
(D) the benefits to consumers of imposing 
a particular duty would outweigh the costs; and 
(E) any other factors as the Agency con-
siders appropriate. 
(3) DUTIES
RELATING
TO
COMPENSATION 
PRACTICES.—The Agency may prescribe regulations 
establishing duties regarding compensation practices 
applicable to a covered person, employee, agent, or 
independent contractor who deals or communicates 
directly with a consumer in the provision of a con-
sumer financial product or service for the purpose of 
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promoting fair dealing with consumers. The Agency 
shall not prescribe a limit on the total dollar amount 
of compensation paid to any person. 
(b) ADMINISTRATIVE PROCEEDINGS.— 
(1) IN GENERAL.—Any regulation prescribed by 
the Agency under this section shall be enforceable 
only by the Agency through an adjudication pro-
ceeding under subtitle E or by a State regulator 
through an appropriate administrative proceeding as 
permitted under State law. 
(2) EXCLUSIVITY OF REMEDY.—No action may 
be commenced in any court to enforce any require-
ment of a regulation prescribed under this section, 
and no court may exercise supplemental jurisdiction 
over a claim asserted under a regulation prescribed 
under this section based on allegations or evidence 
of conduct that otherwise may be subject to such 
regulation. 
(3) RULE
OF
CONSTRUCTION.—The Agency, 
the Attorney General, and any State attorney gen-
eral or State regulator shall not be precluded from 
enforcing any other Federal or State law against a 
person with respect to conduct that may be subject 
to a regulation prescribed by the Agency under this 
section. 
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(c) EXCLUSIONS.—This section shall not be con-
strued as authorizing the Agency to prescribe regulations 
applicable to— 
(1) an attorney licensed to practice law and in 
compliance with the applicable rules and standards 
of professional conduct, but only to the extent that 
the consumer financial product or service provided is 
within the attorney-client relationship with the con-
sumer; or 
(2) any trustee, custodian, or other person that 
holds a fiduciary duty in connection with a trust, in-
cluding a fiduciary duty to a grantor or beneficiary 
of a trust, that is subject to and in compliance with 
the applicable law relating to such trust. 
SEC. 138. CONSUMER RIGHTS TO ACCESS INFORMATION. 
(a) IN GENERAL.—Subject to regulations prescribed 
by the Agency, a covered person shall make available to 
a consumer, in an electronic form usable by the consumer, 
information in the control or possession of the covered per-
son concerning the consumer financial product or service 
that the consumer obtained from such covered person in-
cluding information relating to any transaction, series of 
transactions, or to the account including costs, charges 
and usage data. 
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(b) EXCEPTIONS.—A covered person shall not be re-
quired by this section to make available to the consumer— 
(1) any confidential commercial information, in-
cluding an algorithm used to derive credit scores or 
other risk scores or predictors; 
(2) any information collected by the covered 
person for the purpose of preventing fraud or money 
laundering, or detecting, or making any report re-
garding other unlawful or potentially unlawful con-
duct; 
(3) any information required to be kept con-
fidential by any other law; or 
(4) any information that the covered person 
cannot retrieve in the ordinary course of its business 
with respect to that information. 
(c) NO DUTY TO MAINTAIN RECORDS.—No provision 
of this section shall be construed as imposing any duty 
on a covered person to maintain or keep any information 
about a consumer. 
(d) STANDARDIZED
FORMATS
FOR
DATA.—The 
Agency, by regulation, shall prescribe standards applicable 
to covered persons to promote the development and use 
of standardized formats for information, including 
through the use of machine readable files, to be made 
available to consumers under this section. 
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(e) CONSULTATION AND COORDINATION.—The Agen-
cy shall, when prescribing any regulation under this sec-
tion, consult and coordinate with the Federal banking 
agencies and the Federal Trade Commission to ensure 
that the regulations— 
(1) impose substantively similar requirements 
on covered persons; 
(2) take into account conditions under which 
covered persons do business both in the United 
States and in other countries; and 
(3) do not require or promote the use of any 
particular technology in order to develop systems for 
compliance. 
SEC. 139. PROHIBITED ACTS. 
It shall be unlawful for any person to— 
(1) advertise, market, offer, sell, enforce, or at-
tempt to enforce, any term, agreement, change in 
terms, fee or charge in connection with a consumer 
financial product or service that is not in conformity 
with this title or applicable regulation prescribed or 
order issued by the Agency; 
(2) fail or refuse to permit access to or copying 
of records, or fail or refuse to establish or maintain 
records, or fail or refuse to make reports or provide 
information to the Agency, as required by this title, 
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an enumerated consumer law, or pursuant to the au-
thorities transferred by subtitles F and H, or any 
regulation prescribed or order issued by the Agency 
this title or pursuant to any such authority; or 
(3) knowingly or recklessly provide substantial 
assistance to another person in violation of the pro-
visions of section 131, or any regulation prescribed 
or order issued under such section, and any such 
person shall be deemed to be in violation of that sec-
tion to the same extent as the person to whom such 
assistance is provided. 
SEC. 140. EFFECTIVE DATE. 
This subtitle shall take effect on the designated 
transfer date. 
Subtitle D—Preservation of State 
Law 
SEC. 141. RELATION TO STATE LAW. 
(a) IN GENERAL.— 
(1) RULE OF CONSTRUCTION.—This title shall 
not be construed as annulling, altering, or affecting, 
or exempting any person subject to the provisions of 
this title from complying with, the laws, regulations, 
orders, or interpretations, in effect in any State, ex-
cept to the extent that such statute, regulation, 
order, or interpretation is inconsistent with the pro-
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visions of this title and then only to the extent of the 
inconsistency. 
(2) GREATER
PROTECTION
UNDER
STATE 
LAW.—For the purposes of this subsection, a State 
statute, regulation, order, or interpretation is not in-
consistent with the provisions of this title if the pro-
tection such statute, regulation, order, or interpreta-
tion affords consumers is greater than the protection 
provided under this title, as determined by the Agen-
cy. A determination regarding whether a State stat-
ute, regulation, order, or interpretation is incon-
sistent with the provisions of this title may be made 
by regulation, order or guidance adopted by the 
Agency on its own motion or in response to a non-
frivolous petition initiated by any interested person. 
(b) RELATION TO OTHER PROVISIONS OF ENUMER-
ATED CONSUMER LAWS THAT RELATE TO STATE LAW.— 
No provision of this title, except as provided in section 
175, shall be construed as modifying, limiting, or super-
seding the operation of any provision of an enumerated 
consumer law that relates to the application of State law 
with respect to such Federal law. 
SEC. 142. PRESERVATION OF ENFORCEMENT POWERS OF 
STATES. 
(a) IN GENERAL.— 
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(1) ACTION
BY
STATE.—Any State attorney 
general may bring a civil action in the name of such 
State, as parens patriae on behalf of natural persons 
residing in such State, in any district court of the 
United States or State court having jurisdiction of 
the defendant, to secure monetary or equitable relief 
for violation of any provisions of this title or regula-
tions issued thereunder. 
(2) RULE OF CONSTRUCTION.—No provision of 
this title shall be construed as modifying, limiting, 
or superseding the operation of any provision of an 
enumerated consumer law that relates to the author-
ity of a State attorney general or State regulator to 
enforce such Federal law. 
(b) CONSULTATION REQUIRED.— 
(1) NOTICE.— 
(A) IN
GENERAL.—Before initiating any 
action in a court or other administrative or reg-
ulatory proceeding against any covered person 
to enforce any provision of this title, including 
any regulation prescribed by the Agency under 
this title, a State attorney general or State reg-
ulator shall timely provide a copy of the com-
plete complaint to be filed and written notice 
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describing such action or proceeding to the 
Agency, or the Agency’s designee. 
(B) EMERGENCY ACTION.—If prior notice 
is not practicable, the State attorney general or 
State regulator shall provide a copy of the com-
plete complaint and the notice to the Agency 
immediately upon instituting the action or pro-
ceeding. 
(C) CONTENTS OF NOTICE.—The notifica-
tion required under this section shall, at a min-
imum, describe— 
(i) the identity of the parties; 
(ii) the alleged facts underlying the 
proceeding; and 
(iii) whether there may be a need to 
coordinate the prosecution of the pro-
ceeding so as not to interfere with any ac-
tion, including any rulemaking, undertaken 
by the Agency or another Federal agency. 
(2) AGENCY
RESPONSE.—In any action de-
scribed in paragraph (1), the Agency may— 
(A) intervene in the action as a party; 
(B) upon intervening— 
(i) remove the action to the appro-
priate United States district court, if the 
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action was not originally brought there; 
and 
(ii) be heard on all matters arising in 
the action; and 
(C) appeal any order or judgment to the 
same extent as any other party in the pro-
ceeding may. 
(c) REGULATIONS.—The Agency shall prescribe regu-
lations to implement the requirements of this section and, 
from time to time, provide guidance in order to further 
coordinate actions with the State attorneys general and 
other regulators. 
(d) PRESERVATION OF STATE CLAIMS.—Nothing in 
this section shall be construed as limiting the authority 
of a State attorney general or State regulator to bring an 
action or other regulatory proceeding arising solely under 
the law of that State. 
SEC. 143. STATE LAW PREEMPTION STANDARDS FOR NA-
TIONAL BANKS AND SUBSIDIARIES CLARI-
FIED. 
(a) IN GENERAL.—Chapter one of title LXII of the 
Revised Statutes of the United States (12 U.S.C. 21 et 
seq.) is amended by inserting after section 5136B the fol-
lowing new section: 
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‘‘SEC. 5136C. STATE LAW PREEMPTION STANDARDS FOR NA-
TIONAL BANKS AND SUBSIDIARIES CLARI-
FIED. 
‘‘(a) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
‘‘(1) NATIONAL
BANK.—The term ‘national 
bank’ includes— 
‘‘(A) any bank organized under the laws of 
the United States; 
‘‘(B) any affiliate of a national bank; 
‘‘(C) any subsidiary of a national bank; 
and 
‘‘(D) any Federal branch established in ac-
cordance with the International Banking Act of 
1978. 
‘‘(2) OTHER
DEFINITIONS.—The terms ‘affil-
iate’, ‘subsidiary’, ‘includes’, and ‘including’ have the 
same meaning as in section 3 of the Federal Deposit 
Insurance Act. 
‘‘(3) STATE CONSUMER LAW.—The term ‘State 
consumer law’ means any law of a State that— 
‘‘(A) accords rights to or protects the 
rights of its citizens in financial transactions 
concerning negotiation, sales, solicitation, dis-
closure, terms and conditions, advice, and rem-
edies; or 
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‘‘(B) prevents counterparties, successors, 
and assigns of financial contracts from engag-
ing in unfair or deceptive acts and practices. 
‘‘(b) STATE CONSUMER LAWS OF GENERAL APPLI-
CATION.—Notwithstanding any other provision of Federal 
law and except as provided in subsection (d), any con-
sumer protection provision in State consumer laws of gen-
eral application, including any law relating to unfair or 
deceptive acts or practices, any consumer fraud law and 
repossession, foreclosure, and collection law, shall apply to 
any national bank. 
‘‘(c) STATE BANKING LAWS ENACTED PURSUANT TO 
FEDERAL LAW.—Notwithstanding any other provision of 
Federal law and except as provided in subsection (d), any 
State consumer law that— 
‘‘(1) is applicable to State banks; and 
‘‘(2) was enacted pursuant to or in accordance 
with, and is not inconsistent with, an Act of Con-
gress, including the Gramm-Leach-Bliley Act, the 
Consumer Credit Protection Act, and the Real Es-
tate Settlement Procedures Act, that explicitly or by 
implication, permits States to exceed or supplement 
the requirements of any comparable Federal law, 
shall apply to any national bank. 
‘‘(d) EXCEPTIONS.— 
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‘‘(1) IN
GENERAL.—Subsections (b) and (c) 
shall not apply with respect to any State consumer 
law if— 
‘‘(A) the State consumer law discriminates 
against national banks; or 
‘‘(B) the State consumer law is incon-
sistent with provisions of Federal law other 
than this title, but only to the extent of the in-
consistency (as determined in accordance with 
the provision of the other Federal law). 
‘‘(2) RULE
FOR
DETERMINING
INCONSIST-
ENCY.—For purposes of paragraph (1)(B), a State 
consumer law is not inconsistent with Federal law if 
the protection the State consumer law affords con-
sumers is greater than the protection provided under 
Federal law as determined by the Agency. 
‘‘(e) NO NEGATIVE IMPLICATIONS
FOR APPLICA-
BILITY OF OTHER STATE LAWS.—No provision of this 
section shall be construed as altering or affecting the ap-
plicability, to national banks, of any State law which is 
not described in this section. 
‘‘(f) EFFECT
OF TRANSFER
OF TRANSACTION.— 
State consumer law applicable to a transaction at the in-
ception of the transaction may not be preempted under 
Federal law solely because a national bank subsequently 
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acquires the asset or instrument that is the subject of the 
transaction. 
‘‘(g) DENIAL OF PREEMPTION NOT A DEPRIVATION 
OF A CIVIL RIGHT.—The preemption of any provision of 
the law of any State with respect to any national bank 
shall not be treated as a right, privilege, or immunity for 
purposes of section 1979 of the Revised Statutes of the 
United States (42 U.S.C. 1983).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for chapter one of title LXII of the Revised Statutes of 
the United States is amended by inserting after the item 
relating to section 5136B the following new item: 
‘‘5136C. State law preemption standards for national banks and subsidiaries 
clarified.’’. 
SEC. 144. VISITORIAL STANDARDS. 
Section 5136C of the Revised Statutes of the United 
States (as added by section 143) is amended by adding 
at the end the following new subsections: 
‘‘(h) VISITORIAL POWERS.— 
‘‘(1) RULE OF CONSTRUCTION.—No provision 
of this title which relates to visitorial powers or oth-
erwise limits or restricts the supervisory, examina-
tion, or regulatory authority to which any national 
bank is subject shall be construed as limiting or re-
stricting the authority of any attorney general (or 
other chief law enforcement officer) of any State to 
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ties from enforcing rights granted under Federal or State 
law in the courts.’’. 
SEC. 145. CLARIFICATION OF LAW APPLICABLE TO NON-
DEPOSITORY INSTITUTION SUBSIDIARIES. 
Section 5136C of the Revised Statutes of the United 
States is amended by inserting after subsection (i) (as 
added by section 144) the following new subsection: 
‘‘(j) CLARIFICATION OF LAW APPLICABLE TO NON-
DEPOSITORY INSTITUTION SUBSIDIARIES
AND AFFILI-
ATES OF NATIONAL BANKS.— 
‘‘(1) DEFINITIONS.—For purposes of this sec-
tion, the following definitions shall apply: 
‘‘(A) 
DEPOSITORY
INSTITUTION, 
SUB-
SIDIARY, AFFILIATE.—The terms ‘depository in-
stitution’, ‘subsidiary’, and ‘affiliate’ have the 
same meanings as in section 3 of the Federal 
Deposit Insurance Act. 
‘‘(B) NONDEPOSITORY INSTITUTION.—The 
term ‘nondepository institution’ means any enti-
ty that is not a depository institution. 
‘‘(2) IN GENERAL.—No provision of this title 
shall be construed as annulling, altering, or affecting 
the applicability of State law to any nondepository 
institution, subsidiary, other affiliate, or agent of a 
national bank.’’. 
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SEC. 146. STATE LAW PREEMPTION STANDARDS FOR FED-
ERAL SAVINGS ASSOCIATIONS AND SUBSIDI-
ARIES CLARIFIED. 
(a) IN GENERAL.—The Home Owners’ Loan Act (12 
U.S.C. 1461 et seq.) is amended by inserting after section 
5 the following new section: 
‘‘SEC. 6. STATE LAW PREEMPTION STANDARDS FOR FED-
ERAL SAVINGS ASSOCIATIONS CLARIFIED. 
‘‘(a) DEFINITION.—For purposes of this section— 
‘‘(1) the terms ‘includes’ and ‘including’ have 
the same meaning as in section 3(t) of the Federal 
Deposit Insurance Act. 
‘‘(2) the term ‘State consumer law’ means any 
law of a State that: 
‘‘(A) accords rights to or protects the 
rights of its citizens in financial transactions 
concerning negotiation, sales, solicitation, dis-
closure, terms and conditions, advice, and rem-
edies; or 
‘‘(B) prevents counterparties, successors, 
and assigns of financial contracts from engag-
ing in unfair or deceptive acts and practices. 
‘‘(b) STATE CONSUMER LAWS OF GENERAL APPLI-
CATION.—Notwithstanding any other provision of Federal 
law and except as provided in subsection (c), any con-
sumer protection provision in State consumer laws of gen-
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eral application, including any law relating to unfair or 
deceptive acts or practices, any consumer fraud law and 
repossession, foreclosure, and collection law, shall apply to 
any Federal savings association. 
‘‘(c) EXCEPTIONS.— 
‘‘(1) IN
GENERAL.—Subsection (b) shall not 
apply with respect to any State law if— 
‘‘(A) the State law discriminates against 
Federal savings associations; or 
‘‘(B) the State consumer law is incon-
sistent with provisions of Federal law other 
than this Act, but only to the extent of the in-
consistency (as determined in accordance with 
the provision of the other Federal law). 
‘‘(2) RULE
FOR
DETERMINING
INCONSIST-
ENCY.—For purposes of paragraph (1)(B), a State 
consumer law is not inconsistent with Federal law if 
the protection the State consumer law affords con-
sumers is greater than the protection provided under 
Federal law, as determined by the Agency. 
‘‘(d) STATE BANKING OR THRIFT LAWS ENACTED 
PURSUANT TO FEDERAL LAW.— 
‘‘(1) IN GENERAL.—Notwithstanding any other 
provision of Federal law and except as provided in 
paragraph (2), any State law that— 
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‘‘(A) is applicable to State savings associa-
tions (as defined in section 3 of the Federal De-
posit Insurance Act); and 
‘‘(B) was enacted pursuant to or in accord-
ance with, and is not inconsistent with, an Act 
of Congress, including the Gramm-Leach-Bliley 
Act, the Consumer Credit Protection Act, and 
the Real Estate Settlement Procedures Act, 
that explicitly or by implication, permits States 
to exceed or supplement the requirements of 
any comparable Federal law, 
shall apply to any Federal savings association. 
‘‘(2) EXCEPTIONS.—Paragraph (1) shall not 
apply with respect to any State law if— 
‘‘(A) the State law discriminates against 
Federal savings associations; or 
‘‘(B) the State consumer law is incon-
sistent with provisions of Federal law other 
than this Act, but only to the extent of the in-
consistency (as determined in accordance with 
the provision of the other Federal law). For this 
purpose, a State consumer law is not incon-
sistent with Federal law if the protection the 
State consumer law affords consumers is great-
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er than the protection provided under Federal 
law, as determined by the Agency. 
‘‘(e) NO NEGATIVE IMPLICATIONS
FOR APPLICA-
BILITY OF OTHER STATE LAWS.—No provision of this 
section shall be construed as altering or affecting the ap-
plicability, to Federal savings associations, of any State 
law which is not described in this section. 
‘‘(f) EFFECT
OF TRANSFER
OF TRANSACTION.— 
State consumer law applicable to a transaction at the in-
ception of the transaction may not be preempted under 
Federal law solely because a Federal savings association 
subsequently acquires the asset or instrument that is the 
subject of the transaction. 
‘‘(g) DENIAL OF PREEMPTION NOT A DEPRIVATION 
OF A CIVIL RIGHT.—The preemption of any provision of 
the law of any State with respect to any Federal savings 
association shall not be treated as a right, privilege, or 
immunity for purposes of section 1979 of the Revised 
Statutes of the United States (42 U.S.C. 1983).’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for the Home Owners’ Loan Act (12 U.S.C. 1461 et seq.) 
is amended by striking the item relating to section 6 and 
inserting the following new item: 
‘‘6. State law preemption standards for Federal savings associations and subsidi-
aries clarified.’’. 
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SEC. 147. VISITORIAL STANDARDS. 
Section 6 of the Home Owners’ Loan Act (as added 
by section 146 of this title) is amended by adding at the 
end the following new subsections: 
‘‘(h) VISITORIAL POWERS.— 
‘‘(1) IN GENERAL.—No provision of this Act 
shall be construed as limiting or restricting the au-
thority of any attorney general (or other chief law 
enforcement officer) of any State to bring any action 
in any court of appropriate jurisdiction— 
‘‘(A) to require a Federal savings associa-
tion to produce records relative to the investiga-
tion of violations of State consumer law, or 
Federal consumer laws; 
‘‘(B) to enforce any applicable Federal or 
State law, as authorized by such law; or 
‘‘(C) on behalf of residents of such State, 
to enforce any applicable provision of any Fed-
eral or State law against a Federal savings as-
sociation, as authorized by such law, or to seek 
relief and recover damages for such residents 
from any violation of any such law by any Fed-
eral savings association. 
‘‘(2) CONSULTATION.—The attorney general (or 
other chief law enforcement officer) of any State 
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shall consult with the Director or any successor 
agency before acting under paragraph (1). 
‘‘(i) ENFORCEMENT ACTIONS.—The ability of the Di-
rector or any successor agency to bring an enforcement 
action under this Act or section 5 of the Federal Trade 
Commission Act shall not be construed as precluding pri-
vate parties from enforcing rights granted under Federal 
or State law in the courts.’’. 
SEC. 148. CLARIFICATION OF LAW APPLICABLE TO NON-
DEPOSITORY INSTITUTION SUBSIDIARIES. 
Section 6 of the Home Owners’ Loan Act is amended 
by adding after subsection (i) (as added by section 147) 
the following new subsection: 
‘‘(j) CLARIFICATION OF LAW APPLICABLE TO NON-
DEPOSITORY INSTITUTION SUBSIDIARIES
AND AFFILI-
ATES OF FEDERAL SAVINGS ASSOCIATIONS.— 
‘‘(1) DEFINITIONS.—For purposes of this sec-
tion, the following definitions shall apply: 
‘‘(A) 
DEPOSITORY
INSTITUTION, 
SUB-
SIDIARY, AFFILIATE.—The terms ‘depository in-
stitution’, ‘subsidiary’, and ‘affiliate’ have the 
same meanings as in section 3 of the Federal 
Deposit Insurance Act. 
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‘‘(B) NONDEPOSITORY INSTITUTION.—The 
term ‘nondepository institution’ means any enti-
ty that is not a depository institution. 
‘‘(2) IN GENERAL.—No provision of this title 
shall be construed as preempting the applicability of 
State law to any nondepository institution, sub-
sidiary, other affiliate, or agent of a Federal savings 
association.’’. 
SEC. 149. EFFECTIVE DATE. 
This subtitle shall take effect on the designated 
transfer date. 
Subtitle E—Enforcement Powers 
SEC. 151. DEFINITIONS. 
For purposes of this subtitle, the following definitions 
shall apply: 
(1) CIVIL
INVESTIGATIVE
DEMAND
AND
DE-
MAND.—The terms ‘‘civil investigative demand’’ and 
‘‘demand’’ mean any demand issued by the Agency. 
(2) 
AGENCY
INVESTIGATION.—The 
term 
‘‘Agency investigation’’ means any inquiry conducted 
by an Agency investigator for the purpose of 
ascertaining whether any person is or has been en-
gaged in any conduct that violates this title, any 
enumerated consumer law, or any regulation pre-
scribed or order issued by the Agency under this 
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title or under the authorities transferred under sub-
titles F and H. 
(3) AGENCY INVESTIGATOR.—The term ‘‘Agen-
cy investigator’’ means any attorney or investigator 
employed by the Agency who is charged with the 
duty of enforcing or carrying into effect any provi-
sions of this title, any enumerated consumer law, the 
authorities transferred under subtitles F and H, or 
any regulation prescribed or order issued under this 
title or pursuant to any such authority by the Agen-
cy. 
(4) CUSTODIAN.—The term ‘‘custodian’’ means 
the custodian or any deputy custodian designated by 
the Agency. 
(5) 
DOCUMENTARY
MATERIAL.—The 
term 
‘‘documentary material’’ includes the original or any 
copy of any book, record, report, memorandum, 
paper, communication, tabulation, chart, or other 
document. 
(6) VIOLATION.—The term ‘‘violation’’ means 
any act or omission that, if proved, would constitute 
a violation of any provision of this title, any enumer-
ated consumer law, any law for which authorities 
were transferred under subtitles F and H, or of any 
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regulation prescribed or order issued by the Agency 
under this title or pursuant to any such authority. 
SEC. 152. INVESTIGATIONS AND ADMINISTRATIVE DIS-
COVERY. 
(a) SUBPOENAS.— 
(1) IN GENERAL.—The Agency or an Agency 
investigator may issue subpoenas for the attendance 
and testimony of witnesses and the production of 
relevant papers, books, documents, or other material 
in connection with hearings under this title. 
(2) FAILURE TO OBEY.—In case of contumacy 
or refusal to obey a subpoena issued pursuant to 
this paragraph and served upon any person, the dis-
trict court of the United States for any district in 
which such person is found, resides, or transacts 
business, upon application by the Agency or an 
Agency investigator and after notice to such person, 
shall have jurisdiction to issue an order requiring 
such person to appear and give testimony or to ap-
pear and produce documents or other material, or 
both. 
(3) CONTEMPT.—Any failure to obey an order 
of the court under this subsection may be punished 
by the court as a contempt thereof. 
(b) DEMANDS.— 
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(1) IN GENERAL.—Whenever the Agency has 
reason to believe that any person may be in posses-
sion, custody, or control of any documentary mate-
rial or tangible things, or may have any information, 
relevant to a violation, the Agency may, before the 
institution of any proceedings under this title or 
under any enumerated consumer law or pursuant to 
the authorities transferred under subtitles F and H, 
issue in writing, and cause to be served upon such 
person, a civil investigative demand requiring such 
person to— 
(A) produce such documentary material for 
inspection and copying or reproduction; 
(B) submit such tangible things; 
(C) file written reports or answers to ques-
tions; 
(D) give oral testimony concerning docu-
mentary material or other information; or 
(E) furnish any combination of such mate-
rial, answers, or testimony. 
(2) REQUIREMENTS.—Each civil investigative 
demand shall state the nature of the conduct consti-
tuting the alleged violation which is under investiga-
tion and the provision of law applicable to such vio-
lation. 
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(3) PRODUCTION OF DOCUMENTS.—Each civil 
investigative demand for the production of documen-
tary material shall— 
(A) describe each class of documentary 
material to be produced under the demand with 
such definiteness and certainty as to permit 
such material to be fairly identified; 
(B) prescribe a return date or dates which 
will provide a reasonable period of time within 
which the material so demanded may be assem-
bled and made available for inspection and 
copying or reproduction; and 
(C) identify the custodian to whom such 
material shall be made available. 
(4) PRODUCTION OF THINGS.—Each civil inves-
tigative demand for the submission of tangible 
things shall— 
(A) describe each class of tangible things 
to be submitted under the demand with such 
definiteness and certainty as to permit such 
things to be fairly identified; 
(B) prescribe a return date or dates which 
will provide a reasonable period of time within 
which the things so demanded may be assem-
bled and submitted; and 
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response to a civil investigative demand shall be 
made under a sworn certificate, in such form as the 
demand designates, by the person, if a natural per-
son, to whom the demand is directed or, if not a 
natural person, by any person having knowledge of 
the facts and circumstances relating to such produc-
tion, to the effect that all of the documentary mate-
rial required by the demand and in the possession, 
custody, or control of the person to whom the de-
mand is directed has been produced and made avail-
able to the custodian. 
(11) SUBMISSION OF TANGIBLE THINGS.—The 
submission of tangible things in response to a civil 
investigative demand shall be made under a sworn 
certificate, in such form as the demand designates, 
by the person to whom the demand is directed or, 
if not a natural person, by any person having knowl-
edge of the facts and circumstances relating to such 
production, to the effect that all of the tangible 
things required by the demand and in the posses-
sion, custody, or control of the person to whom the 
demand is directed have been submitted to the cus-
todian. 
(12) SEPARATE ANSWERS.—Each reporting re-
quirement or question in a civil investigative demand 
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shall be answered separately and fully in writing 
under oath, unless it is objected to, in which event 
the reasons for the objection shall be stated in lieu 
of an answer, and it shall be submitted under a 
sworn certificate, in such form as the demand des-
ignates, by the person, if a natural person, to whom 
the demand is directed or, if not a natural person, 
by any person responsible for answering each report-
ing requirement or question, to the effect that all in-
formation required by the demand and in the posses-
sion, custody, control, or knowledge of the person to 
whom the demand is directed has been submitted. 
(13) TESTIMONY.— 
(A) PROCEDURE.— 
(i) OATH
AND
RECORDATION.—Any 
Agency investigator before whom oral testi-
mony is to be taken shall put the witness 
on oath or affirmation and shall person-
ally, or by any individual acting under his 
direction and in his presence, record the 
testimony of the witness. 
(ii) TRANSCRIPTIONS.—The testimony 
shall be taken stenographically and tran-
scribed. 
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(iii) COPY TO CUSTODIAN.—After the 
testimony is fully transcribed, the Agency 
investigator before whom the testimony is 
taken shall promptly transmit a copy of 
the transcript of the testimony to the cus-
todian. 
(B) PARTIES PRESENT.—Any Agency in-
vestigator before whom oral testimony is to be 
taken shall exclude from the place where the 
testimony is to be taken all other persons ex-
cept the person giving the testimony, his or her 
attorney, the officer before whom the testimony 
is to be taken, and any stenographer taking 
such testimony. 
(C) LOCATION.—The oral testimony of any 
person taken pursuant to a civil investigative 
demand shall be taken in the judicial district of 
the United States in which such person resides, 
is found, or transacts business, or in such other 
place as may be agreed upon by the Agency in-
vestigator before whom the oral testimony of 
such person is to be taken and such person. 
(D) ATTORNEY REPRESENTATION.— 
(i) IN
GENERAL.—Any person com-
pelled to appear under a civil investigative 
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demand for oral testimony pursuant to this 
section may be accompanied, represented, 
and advised by an attorney. 
(ii) CONFIDENTIAL ADVICE.—The at-
torney may advise the person summoned, 
in confidence, either upon the request of 
such person or upon the initiative of the 
attorney, with respect to any question 
asked of such person. 
(iii) OBJECTIONS.—The person sum-
moned or the attorney may object on the 
record to any question, in whole or in part, 
and shall briefly state for the record the 
reason for the objection. 
(iv) REFUSAL TO ANSWER.—An objec-
tion may properly be made, received, and 
entered upon the record when it is claimed 
that the person summoned is entitled to 
refuse to answer the question on grounds 
of any constitutional or other legal right or 
privilege, including the privilege against 
self-incrimination, but such person shall 
not otherwise object to or refuse to answer 
any question, and shall not otherwise inter-
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rupt the oral examination, directly or 
through such person’s attorney. 
(v) PETITION
FOR
ORDER.—If such 
person refuses to answer any question, the 
Agency may petition the district court of 
the United States pursuant to this section 
for an order compelling such person to an-
swer such question. 
(vi) BASIS FOR COMPELLING TESTI-
MONY.—If such person refuses to answer 
any question on grounds of the privilege 
against self-incrimination, the testimony of 
such person may be compelled in accord-
ance with the provisions of section 6004 of 
title 18, United States Code. 
(E) TRANSCRIPTS.— 
(i) RIGHT
TO
EXAMINE.—After the 
testimony of any witness is fully tran-
scribed, the Agency investigator shall af-
ford the witness (who may be accompanied 
by an attorney) a reasonable opportunity 
to examine the transcript. 
(ii) READING THE TRANSCRIPT.—The 
transcript shall be read to or by the wit-
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ness, unless such examination and reading 
are waived by the witness. 
(iii) REQUEST
FOR
CHANGES.—Any 
changes in form or substance which the 
witness desires to make shall be entered 
and identified upon the transcript by the 
Agency investigator with a statement of 
the reasons given by the witness for mak-
ing such changes. 
(iv) 
SIGNATURE.—The 
transcript 
shall be signed by the witness, unless the 
witness in writing waives the signing, is ill, 
cannot be found, or refuses to sign. 
(v) AGENCY ACTION IN LIEU OF SIG-
NATURE.—If the transcript is not signed 
by the witness during the 30-day period 
following the date upon which the witness 
is first afforded a reasonable opportunity 
to examine it, the Agency investigator shall 
sign the transcript and state on the record 
the fact of the waiver, illness, absence of 
the witness, or the refusal to sign, together 
with any reasons given for the failure to 
sign. 
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(F) CERTIFICATION BY INVESTIGATOR.— 
The Agency investigator shall certify on the 
transcript that the witness was duly sworn by 
the investigator and that the transcript is a 
true record of the testimony given by the wit-
ness, and the Agency investigator shall prompt-
ly deliver the transcript or send it by registered 
or certified mail to the custodian. 
(G) COPY OF TRANSCRIPT.—The Agency 
investigator shall furnish a copy of the tran-
script (upon payment of reasonable charges for 
the transcript) to the witness only, except that 
the Agency may for good cause limit such wit-
ness to inspection of the official transcript of 
his testimony. 
(H) WITNESS FEES.—Any witness appear-
ing for the taking of oral testimony pursuant to 
a civil investigative demand shall be entitled to 
the same fees and mileage which are paid to 
witnesses in the district courts of the United 
States. 
(c) CONFIDENTIAL TREATMENT OF DEMAND MATE-
RIAL.— 
(1) IN GENERAL.—Materials received as a re-
sult of a civil investigative demand shall be subject 
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to requirements and procedures regarding confiden-
tiality, in accordance with regulations established by 
the Agency. 
(2) DISCLOSURE TO CONGRESS.—No regulation 
established by the Agency regarding the confiden-
tiality of materials submitted to, or otherwise ob-
tained by, the Agency shall be intended to prevent 
disclosure to either House of Congress or to an ap-
propriate committee of the Congress, except that the 
Agency may prescribe regulations allowing prior no-
tice to any party that owns or otherwise provided 
the material to the Agency and has designated such 
material as confidential. 
(d) PETITION FOR ENFORCEMENT.— 
(1) IN GENERAL.—Whenever any person fails 
to comply with any civil investigative demand duly 
served upon such person under this section, or when-
ever satisfactory copying or reproduction of material 
requested pursuant to the demand cannot be accom-
plished and such person refuses to surrender such 
material, the Agency, through such officers or attor-
neys as it may designate, may file, in the district 
court of the United States for any judicial district 
in which such person resides, is found, or transacts 
business, and serve upon such person, a petition for 
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an order of such court for the enforcement of this 
section. 
(2) SERVICE OF PROCESS.—All process of any 
court to which application may be made as provided 
in this subsection may be served in any judicial dis-
trict. 
(e) PETITION FOR ORDER MODIFYING OR SETTING 
ASIDE DEMAND.— 
(1) IN GENERAL.—Not later than 20 days after 
the service of any civil investigative demand upon 
any person under subsection (b), or at any time be-
fore the return date specified in the demand, which-
ever period is shorter, or within such period exceed-
ing 20 days after service or in excess of such return 
date as may be prescribed in writing, subsequent to 
service, by any Agency investigator named in the de-
mand, such person may file with the Agency a peti-
tion for an order by the Agency modifying or setting 
aside the demand. 
(2) COMPLIANCE
DURING
PENDENCY.—The 
time permitted for compliance with the demand in 
whole or in part, as deemed proper and ordered by 
the Agency, shall not run during the pendency of 
such petition at the Agency, except that such person 
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shall comply with any portions of the demand not 
sought to be modified or set aside. 
(3) SPECIFIC
GROUNDS.—Such petition shall 
specify each ground upon which the petitioner relies 
in seeking such relief, and may be based upon any 
failure of the demand to comply with the provisions 
of this section, or upon any constitutional or other 
legal right or privilege of such person. 
(f) CUSTODIAL CONTROL.—At any time during which 
any custodian is in custody or control of any documentary 
material, tangible things, reports, answers to questions, or 
transcripts of oral testimony given by any person in com-
pliance with any civil investigative demand, such person 
may file, in the district court of the United States for the 
judicial district within which the office of such custodian 
is situated, and serve upon such custodian, a petition for 
an order of such court requiring the performance by such 
custodian of any duty imposed upon such custodian by 
this section or regulation prescribed by the Agency. 
(g) JURISDICTION OF COURT.— 
(1) IN
GENERAL.—Whenever any petition is 
filed in any district court of the United States under 
this section, such court shall have jurisdiction to 
hear and determine the matter so presented, and to 
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enter such order or orders as may be required to 
carry into effect the provisions of this section. 
(2) APPEAL.—Any final order so entered shall 
be subject to appeal pursuant to section 1291 of title 
28, United States Code. 
SEC. 153. HEARINGS AND ADJUDICATION PROCEEDINGS. 
(a) IN GENERAL.—The Agency may conduct hear-
ings and adjudication proceedings with respect to any per-
son in the manner prescribed by chapter 5 of title 5, 
United States Code in order to ensure or enforce compli-
ance with— 
(1) the provisions of this title, including any 
regulations prescribed by the Agency under this 
title; and 
(2) any other Federal law that the Agency is 
authorized to enforce, including an enumerated con-
sumer law, and any regulations or order prescribed 
thereunder, unless such Federal law specifically lim-
its the Agency from conducting a hearing or adju-
dication proceeding and only to the extent of such 
limitation. 
(b) SPECIAL RULES FOR CEASE-AND-DESIST PRO-
CEEDINGS.— 
(1) ISSUANCE.— 
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(A) NOTICE OF CHARGES.—If, in the opin-
ion of the Agency, any covered person is engag-
ing or has engaged in an activity that violates 
a law, regulation, or any condition imposed in 
writing on the person by the Agency, the Agen-
cy may issue and serve upon the person a no-
tice of charges with respect to such violation. 
(B) CONTENTS
OF
NOTICE.—The notice 
shall contain a statement of the facts consti-
tuting any alleged violation and shall fix a time 
and place at which a hearing will be held to de-
termine whether an order to cease-and-desist 
there from should issue against the person. 
(C) TIME OF HEARING.—A hearing under 
this subsection shall be fixed for a date not ear-
lier than 30 days nor later than 60 days after 
service of such notice unless an earlier or a 
later date is set by the Agency at the request 
of any party so served. 
(D) NONAPPEARANCE
DEEMED
TO
BE 
CONSENT TO ORDER.—Unless the party or par-
ties so served shall appear at the hearing per-
sonally or by a duly authorized representative, 
they shall be deemed to have consented to the 
issuance of the cease-and-desist order. 
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124 
tion of the Comptroller of the Currency trans-
ferred to the Agency by this title; and 
(B) existed on the day before the des-
ignated transfer date. 
(2) CONTINUATION OF SUITS.—This Act shall 
not abate any proceeding commenced by or against 
the Comptroller of the Currency (or the Office of the 
Comptroller of the Currency) with respect to any 
consumer financial protection function of the Comp-
troller of the Currency transferred to the Agency by 
this title before the designated transfer date, except 
that the Agency shall be substituted for the Comp-
troller of the Currency (or the Office of the Comp-
troller of the Currency) as a party to any such pro-
ceeding as of the designated transfer date. 
(f) OFFICE OF THRIFT SUPERVISION.— 
(1) EXISTING RIGHTS, DUTIES, AND OBLIGA-
TIONS NOT AFFECTED.—Section 161(a)(3) shall not 
affect the validity of any right, duty, or obligation of 
the United States, the Director of the Office of 
Thrift Supervision, the Office of Thrift Supervision, 
or any other person, that— 
(A) arises under any provision of law relat-
ing to any consumer financial protection func-
tion of the Director of the Office of Thrift Su-
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210 
rectors of the Federal Deposit Insurance Cor-
poration; and 
‘‘(D) Federal savings associations, and 
savings and loan holding companies, by the Di-
rector of the Office of Thrift Supervision; 
‘‘(2) subtitle E of the Consumer Financial Pro-
tection Agency Act of 2009, by the Agency in the 
case of a covered person under that Act; 
‘‘(3) the Federal Credit Union Act, by the Ad-
ministrator of the National Credit Union Adminis-
tration with respect to any credit union; and 
‘‘(4) other lending institutions, by the Secretary 
of Housing and Urban Development. The terms 
used in paragraph (1) that are not defined in this 
title or otherwise defined in section 3(s) of the Fed-
eral Deposit Insurance Act (12 U.S.C. 1813(s)) 
shall have the meaning given to them in section 1(b) 
of the International Banking Act of 1978 (12 U.S.C. 
3101). 
The terms used in paragraph (1) that are not defined in 
this title or otherwise defined in section 3(s) of the Federal 
Deposit Insurance Act (12 U.S.C. 1813(s)) shall have the 
meaning given to them in section 1(b) of the International 
Banking Act of 1978’’; and 
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