(2) LEGISLATIVE
RECOMMENDATION.—When-
ever the Commission submits any legislative rec-
ommendations, or testimony, or comments on legis-
lation to the President or the Office of Management 
and Budget, it shall concurrently transmit a copy 
thereof to the relevant congressional committees. No 
officer or agency of the United States shall have any 
authority to require the Commission to submit its 
legislative recommendations, or testimony, or com-
ments on legislation, to any officer or agency of the 
United States for approval, comments, or review, 
prior to the submission of such recommendations, 
testimony, or comments to the relevant congressional 
committees. 
SEC. 9. COLLABORATION WITH FEDERAL AND STATE ENTI-
TIES. 
(a) PREEMPTION.—Nothing in this Act or any rule 
promulgated thereunder may be construed to preempt any 
provision of State law that provides equal or greater pro-
tection to consumers than is provided in this Act. 
(b) PROGRAMS TO PROMOTE FEDERAL-STATE CO-
OPERATION.—The Commission shall establish a program 
to promote Federal-State cooperation for the purposes of 
carrying out this Act. In implementing such program, the 
Commission may— 
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(1) accept from any State or local authority en-
gaged in activities relating to consumer credit pro-
tection assistance in such functions as data collec-
tion, investigation, and educational programs, as 
well as other assistance in the administration and 
enforcement of this Act which such States or local-
ities may be able and willing to provide and, if so 
agreed, may pay in advance or otherwise for the rea-
sonable cost of such assistance; and 
(2) commission any qualified officer or em-
ployee of any State or local agency as an officer of 
the Commission for the purpose of conducting inves-
tigations. 
(c) COOPERATION OF FEDERAL DEPARTMENTS AND 
AGENCIES.—The Commission may obtain from any Fed-
eral department or agency such statistics, data, program 
reports, and other materials as it may deem necessary to 
carry out its functions under this Act. Each such depart-
ment or agency shall cooperate with the Commission and, 
to the extent permitted by law, furnish such materials to 
it. The Commission and the heads of other departments 
and agencies engaged in administering programs related 
to consumer credit safety shall, to the maximum extent 
practicable, cooperate and consult in order to ensure fully 
coordinated efforts. 
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SEC. 10. PROCEDURES AND RULEMAKING. 
(a) COMMENCEMENT OF PROCEEDING; PUBLICATION 
OF PRESCRIBED NOTICE OF PROPOSED RULEMAKING; 
TRANSMITTAL OF NOTICE.—A proceeding for the develop-
ment of a consumer credit safety rule shall be commenced 
by the publication in the Federal Register of an advance 
notice of proposed rulemaking which shall— 
(1) identify the objective or objectives specified 
in section 6(a) for the consumer credit safety rule; 
(2) include a summary of each of the regulatory 
alternatives under consideration by the Commission; 
(3) include information with respect to any ex-
isting voluntary standard known to the Commission 
which may be relevant to the proceedings, together 
with a summary of the reasons why the Commission 
believes preliminarily that such standard does not 
achieve an objective identified in paragraph (1); 
(4) invite interested persons to submit to the 
Commission, within such period as the Commission 
shall specify in the notice (which period shall not be 
shorter than 30 days or longer than 60 days after 
the date of publication of the notice), comments with 
respect to the proposed rulemaking, the regulatory 
alternatives being considered, and other possible al-
ternatives for achieving the objective or objectives 
identified in paragraph (1); and 
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(5) invite any person (other than the Commis-
sion) to submit to the Commission, within such pe-
riod as the Commission shall specify in the notice 
(which period shall not be less than 30 days after 
the date of publication of the notice), an existing 
voluntary standard or a portion of such a standard 
as a proposed consumer credit safety rule. 
(b) TRANSMITTAL TO CONGRESS.—The Commission 
shall transmit such notice within 10 calendar days to the 
relevant congressional committees. 
(c) VOLUNTARY STANDARD; PUBLICATION AS PRO-
POSED RULE; NOTICE OF RELIANCE OF COMMISSION ON 
STANDARD.—If the Commission determines that any 
standard submitted to it in response to an invitation in 
a notice published under subsection (a)(5) if promulgated 
(in whole, in part, or in combination with any other stand-
ard submitted to the Commission or any part of such a 
standard) as a consumer credit safety rule, would achieve 
the objective or objectives identified in paragraph (1), the 
Commission may publish such standard, in whole, in part, 
or in such combination and with nonmaterial modifica-
tions, as a proposed consumer credit safety rule. 
(d) PUBLICATION OF PROPOSED RULE; PRELIMI-
NARY
REGULATORY
ANALYSIS; CONTENTS.—No con-
sumer credit safety rule may be proposed by the Commis-
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sion unless, not later than 60 days after the date of publi-
cation of the notice required in subsection (a), the Com-
mission publishes in the Federal Register the text of the 
proposed rule, including any alternatives, which the Com-
mission proposes to promulgate, together with a prelimi-
nary regulatory analysis containing— 
(1) a preliminary description of the potential 
benefits and potential costs of the proposed rule, in-
cluding any benefits or costs that cannot be quan-
tified in monetary terms, and an identification of 
those likely to receive the benefits and bear the 
costs; 
(2) a discussion of the reasons any standard or 
portion of a standard submitted to the Commission 
under subsection (a)(5) was not published by the 
Commission as the proposed rule or part of the pro-
posed rule; and 
(3) a description of any reasonable alternatives 
to the proposed rule, together with a summary de-
scription of their potential costs and benefits, and a 
brief explanation of why such alternatives should not 
be published as a proposed rule. 
(e) TRANSMITTAL
OF NOTICE.—The Commission 
shall transmit such notice not later than 10 calendar days 
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after the date of publication of the notice to the relevant 
congressional committees. 
(f) FINAL ISSUANCE.—Any proposed consumer credit 
safety rule shall be issued within 12 months after the date 
of publication of an advance notice of proposed rulemaking 
under subsection (a) relating to the consumer credit in-
volved, unless the Commission determines that such pro-
posed rule is not a reasonable means of achieving the ob-
jective or objectives identified in subsection (a)(1) with re-
spect to such proposed rule or an objective specified in 
section 6(a), or is not in the public interest. The Commis-
sion may extend that 12-month period for good cause. If 
the Commission extends such period, it shall immediately 
transmit notice of such extension to the relevant congres-
sional committees. Such notice shall include an expla-
nation of the reasons for such extension, together with an 
estimate of the date by which the Commission anticipates 
such rulemaking will be completed. The Commission shall 
publish a notice of such extension and the information 
submitted to the Congress in the Federal Register. 
(g) PROMULGATION OF RULE.— 
(1) TIMING.—Not later than 60 days after the 
date of publication under subsection (c) of a pro-
posed consumer credit safety rule, the Commission 
shall— 
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(A) promulgate a consumer credit safety 
rule, if it makes the findings required under 
subsection (h); or 
(B) withdraw the applicable notice of pro-
posed rulemaking if it determines that such rule 
is not— 
(i) a reasonable means of achieving 
the objective or objectives identified in sub-
section (a)(1) with respect to such pro-
posed rule or an objective specified in sec-
tion 6(a); or 
(ii) in the public interest. 
(2) EXTENSION.—The Commission may extend 
such 60-day period in paragraph (1) for good cause 
shown (if it publishes its reasons therefor in the 
Federal Register). 
(3) TITLE
5.—Consumer credit safety rules 
shall be promulgated in accordance with section 553 
of title 5, United States Code, except that the Com-
mission shall give interested persons an opportunity 
for the oral presentation of data, views, or argu-
ments, in addition to an opportunity to make written 
submissions. A transcript shall be kept of any oral 
presentation. 
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(h) EXPRESSION OF OBJECTIVE; CONSIDERATION OF 
AVAILABLE PRODUCT DATA; NEEDS OF ELDERLY AND 
HANDICAPPED.— 
(1) OBJECTIVES.—A consumer credit safety 
rule shall express in the rule itself the objectives 
identified in subsection (a)(1) with respect to such 
rule. 
(2) CONSIDERATIONS.—In promulgating such a 
rule, the Commission shall— 
(A) consider relevant available data, in-
cluding the results of investigation activities 
conducted generally and pursuant to this Act; 
and 
(B) consider and take into account the 
special needs of elderly individuals and individ-
uals with disabilities to determine the extent to 
which such persons may be affected by such 
rule. 
(i) FINDINGS; FINAL REGULATORY ANALYSIS; JUDI-
CIAL REVIEW OF RULE.— 
(1) FINDINGS.—Prior to promulgating a con-
sumer credit safety rule, the Commission shall con-
sider, and shall make appropriate findings for inclu-
sion in such rule with respect to— 
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(A) the degree and nature of the benefit to 
consumer protection that the rule is designed to 
achieve or promote; 
(B) the approximate number of consumer 
credit products, or types or classes thereof, sub-
ject to such rule; 
(C) the need of the public for the con-
sumer credit product subject to such rule, and 
the probable effect of such rule upon the utility, 
cost, or availability of such services to meet 
such need; and 
(D) any means of achieving the objective of 
the order while minimizing adverse effects on 
competition or disruption or dislocation of the 
provision of consumer credit. 
(2) REGULATORY ANALYSIS.—The Commission 
shall not promulgate a consumer credit safety rule, 
unless it— 
(A) has prepared, on the basis of the find-
ings of the Commission under paragraph (1) 
and on other information before the Commis-
sion, a final regulatory analysis of the rule con-
taining— 
(i) a description of the potential bene-
fits and potential costs of the rule, includ-
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ing costs and benefits that cannot be quan-
tified in monetary terms, and the identi-
fication of those likely to receive the bene-
fits and bear the costs; 
(ii) a description of any alternatives to 
the final rule which were considered by the 
Commission, together with a brief expla-
nation of the reasons why these alter-
natives were not chosen; and 
(iii) a summary of any significant 
issues raised by the comments submitted 
during the public comment period in re-
sponse to the preliminary regulatory anal-
ysis, and a summary of the assessment by 
the Commission of such issues; 
(B) finds (and includes such finding in the 
rule)— 
(i) that the rule (including its effective 
date) is reasonably appropriate to achieve 
an objective identified in subsection (a)(1) 
with respect to such proposed rule or speci-
fied in section 6(a); 
(ii) that the promulgation of the rule 
is in the public interest; and 
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(iii) that the benefits expected from 
the rule bear a reasonable relationship to 
its costs. 
(3) PUBLICATION.—The Commission shall pub-
lish its final regulatory analysis with the rule. 
(4) LIMIT ON JUDICIAL REVIEW.—Any prelimi-
nary or final regulatory analysis prepared under 
subsection (c) or (i)(2) shall not be subject to inde-
pendent judicial review, except that when an action 
for judicial review of a rule is instituted, the con-
tents of any such regulatory analysis shall constitute 
part of the whole rulemaking record of agency action 
in connection with such review. The provisions of 
this paragraph shall not be construed to alter the 
substantive or procedural standards otherwise appli-
cable to judicial review of any action by the Commis-
sion. 
(j) EFFECTIVE DATE.—Each consumer credit safety 
rule shall specify the date on which such rule is to take 
effect, not to exceed 180 days from the date on which it 
is issued in final form, unless the Commission finds, for 
good cause shown, that a later effective date is in the pub-
lic interest and publishes its reasons for such finding. The 
effective date of a consumer credit safety rule under this 
Act shall be set at a date that is at least 30 days after 
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the date of issuance in final form, unless the Commission 
for good cause shown determines that an earlier effective 
date is in the public interest. In no case may the effective 
date be set at a date which is earlier than the date of 
issuance in final form. 
(k) AMENDMENT OR REVOCATION OF RULE.—The 
Commission may, by rule, amend or revoke any consumer 
credit safety rule. Such amendment or revocation shall 
specify the date on which it is to take effect, which shall 
not exceed 180 days from the date on which the amend-
ment or revocation is published, unless the Commission 
finds for good cause shown that a later effective date is 
in the public interest and publishes its reasons for such 
finding. Where an amendment involves a material change 
in a consumer credit safety rule, subsections (a) through 
(h) shall apply. In order to revoke a consumer credit safety 
rule, the Commission shall publish a proposal to revoke 
such rule in the Federal Register, and allow oral and writ-
ten presentations in accordance with subsection (d)(2). 
The Commission may revoke such rule only if it deter-
mines that the rule is not a reasonable means of achieving 
an objective identified in subsection (a)(1) with respect to 
such proposed rule or an objective specified in subsection 
6(a). 
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(l) PETITION TO INITIATE RULEMAKING.—The Com-
mission shall grant, in whole or in part, or deny any peti-
tion under section 553 (e) of title 5, United States Code, 
requesting the Commission to initiate a rulemaking, with-
in a reasonable time after the date on which such petition 
is filed. The Commission shall state the reasons for grant-
ing or denying such petition. 
SEC. 11. PROHIBITED ACTS. 
It shall be unlawful for any person— 
(1) to advertise for or offer for sale any con-
sumer credit which is not in conformity with an ap-
plicable consumer credit safety rule under this Act; 
(2) to advertise for or offer for sale any con-
sumer credit— 
(A) which has been declared a banned 
product by a rule under this Act; and 
(B) in a manner that does not comply with 
any requirements for the provision of any warn-
ings or other information regarding such credit; 
or 
(3) to fail or refuse to permit access to or copy-
ing of records, or fail or refuse to establish or main-
tain records, or fail or refuse to make reports or 
provide information to the Commission as required 
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under this Act or any rule thereunder, other than 
section 9. 
SEC. 12. PENALTIES FOR VIOLATIONS. 
(a) CRIMINAL PENALTIES.— 
(1) KNOWING AND WILLFUL VIOLATIONS.—Any 
person who knowingly and willfully violates section 
11 after having received notice of noncompliance 
from the Commission shall be fined not more than 
$500,000 or be imprisoned not more than one year, 
or both. 
(2) EXECUTIVES AND AGENTS.—Any individual 
director, officer, or agent of a corporation who 
knowingly and willfully authorizes, orders, or per-
forms any of the acts or practices constituting in 
whole or in part a violation of section 11, and who 
has knowledge of notice of noncompliance received 
by the corporation from the Commission, shall be 
subject to penalties under this section, without re-
gard to any penalties to which that corporation may 
be otherwise subject. 
(b) CIVIL PENALTIES.— 
(1) IN GENERAL.—Any person who violates sec-
tion 11 shall be subject to a civil penalty to be estab-
lished at the discretion of the Commission. A viola-
tion of section 11 shall constitute a separate civil of-
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fense with respect to each consumer credit trans-
action involved. 
(2) PUBLICATION
OF
SCHEDULE
OF
PEN-
ALTIES.—Not later than December 1, 2009, and De-
cember 1 of each fifth calendar year thereafter, the 
Commission shall prescribe and publish in the Fed-
eral Register a schedule of maximum authorized 
penalties that shall apply for violations that occur 
after January 1 of the year immediately following 
such publication. 
(3) RELEVANT
FACTORS
IN
DETERMINING 
AMOUNT OF PENALTY.—In determining the amount 
of any penalty to be sought upon commencing an ac-
tion seeking to assess a penalty for a violation of 
section 11, the Commission shall consider the nature 
of the consumer credit product or service, the sever-
ity of the unreasonable risk to the consumer, the 
number of products or services sold or distributed, 
and the appropriateness of such penalty in relation 
to the size of the business of the person charged. 
(4) COMPROMISE
OF
PENALTY; DEDUCTIONS 
FROM PENALTY.—Any civil penalty under this sec-
tion may be compromised by the Commission. In de-
termining the amount of such penalty or whether it 
should be remitted or mitigated and in what 
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amount, the Commission shall consider the appro-
priateness of such penalty to the size of the business 
of the person charged, the nature of the consumer 
credit, the severity of the unreasonable risk to the 
consumer, the occurrence or absence of consumer in-
jury, and the number of offending products or serv-
ices sold. The amount of such penalty when finally 
determined, or the amount agreed on compromise, 
may be deducted from any sums owing by the 
United States to the person charged. 
(c) COLLECTION
AND USE
OF PENALTIES.—The 
Commission shall retain ownership over criminal and civil 
fees collected and shall apply these fees to defray the costs 
of the Commission’s operation or, where appropriate, pro-
vide restitution for harmed consumers. 
SEC. 13. REPORTS. 
(a) REPORTS
TO
THE PUBLIC.—The Commission 
shall determine what reports should be produced and dis-
tributed to the public on a recurring and ad hoc basis, 
and shall prepare and publish such reports on a web site 
that provides free access to the general public. 
(b) REPORT TO PRESIDENT AND CONGRESS.—The 
Commission shall prepare and submit to the President and 
the relevant congressional committees at the beginning of 
each regular session of Congress a comprehensive report 
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on the administration of this Act for the preceding fiscal 
year. Such report shall include— 
(1) a thorough appraisal, including statistical 
analyses, estimates, and long-term projections, of the 
incidence and effects of practices associated with the 
provision of consumer credit that are inconsistent 
with the objectives specified in section 6(a), with a 
breakdown, insofar as practicable, among the var-
ious sources of injury as the Commission finds ap-
propriate; 
(2) a list of consumer credit safety rules pre-
scribed or in effect during such year; 
(3) an evaluation of the degree of observance of 
consumer credit safety rules, including a list of en-
forcement actions, court decisions, and compromises 
of civil penalties, by location and company name; 
(4) a summary of outstanding problems con-
fronting the administration of this Act in order of 
priority; 
(5) an analysis and evaluation of public and 
private consumer credit safety research activities; 
(6) a list, with a brief statement of the issues, 
of completed or pending judicial actions under this 
Act; 
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(7) the extent to which technical information 
was disseminated to the scientific and consumer 
credit communities and consumer information was 
made available to the public; 
(8) the extent of cooperation between Commis-
sion officials and representatives of industry and 
other interested parties in the implementation of this 
Act, including a log or summary of meetings held 
between Commission officials and representatives of 
industry and other interested parties; 
(9) an appraisal of significant actions of State 
and local governments relating to the responsibilities 
of the Commission; 
(10) with respect to voluntary consumer credit 
safety standards promulgated as consumer safety 
rules under section 10(c), a description of— 
(A) the number of such standards adopted 
as rules; and 
(B) the nature and number of the con-
sumer credit products and services which are 
the subject of such adopted rules and the ap-
proximate number of consumers affected; 
(11) such recommendations for additional legis-
lation as the Commission deems necessary to carry 
out the purposes of this Act; and 
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(12) the extent of cooperation with and the 
joint efforts undertaken by the Commission in con-
junction with other regulators with whom the Com-
mission shares responsibilities for consumer credit 
safety. 
SEC. 14. EFFECTIVE DATE. 
This Act shall be effective 120 days after the date 
of enactment of this Act. 
Æ 
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