I
107TH CONGRESS
1ST SESSION
H. R. 1057
To amend the Truth in Savings Act to enhance civil liability and other
enforcement, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
MARCH 15, 2001
Mr. LAFALCE (for himself, Mr. GUTIERREZ, Ms. LEE, Mrs. JONES of Ohio,
Mr. CAPUANO, Mr. CLAY, Mr. HINCHEY, and Ms. SCHAKOWSKY) intro-
duced the following bill; which was referred to the Committee on Finan-
cial Services
A BILL
To amend the Truth in Savings Act to enhance civil liability
and other enforcement, 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 ‘‘Truth in Savings En-
hancement Act of 2001’’.
SEC. 2. IMPROVED ENFORCEMENT AUTHORITY.
Section 270 of the Truth in Savings Act (12 U.S.C.
4309) is amended by adding at the end the following new
subsection:
‘‘(d) STATE ACTION FOR VIOLATIONS.—
‘‘(1) AUTHORITY OF THE STATES.—In addition
to such other remedies as are provided under State
law, if the attorney general of a State, or an officer
authorized by the State, has reason to believe that
any depository institution has violated or is violating
this subtitle, the State may—
‘‘(A) bring an action on behalf of the resi-
dents of the State to enjoin such violation in
any appropriate United States district court or
in any other court of competent jurisdiction;
and
‘‘(B) bring an action on behalf of the resi-
dents of the State to enforce compliance with
this subtitle, to obtain damages, restitution, or
other compensation on behalf of the residents of
such State, or to obtain such further and other
relief as the court may deem appropriate.
‘‘(2) RIGHTS OF FEDERAL AGENCIES.—
‘‘(A) NOTICE.—The State shall serve prior
written notice of any action commenced under
paragraph (1) with respect to any depository in-
stitution upon the Federal agency described in
subsection (a) with respect to such depository
institution and shall provide such agency with a
copy of the complaint unless such prior notice
is not feasible, in which case the State shall
serve such notice immediately upon instituting
such action.
‘‘(B) INTERVENING ACTION.—Any agency
described in subsection (a) which receives a no-
tice from a State under subparagraph (A) with
respect to any action described in such subpara-
graph shall have the right—
‘‘(i) to move to stay the action, pend-
ing the final disposition of a pending Fed-
eral matter as described in paragraph (4);
‘‘(ii) to intervene in an action under
paragraph (1);
‘‘(iii) upon so intervening, to be heard
on all matters arising therein;
‘‘(iv) to remove the action to the ap-
propriate United States district court; and
‘‘(v) to file petitions for appeal.
‘‘(3) INVESTIGATORY
POWERS.—For purposes
of bringing any action under this subsection, nothing
in this subsection shall prevent the attorney general,
or officers of such State who are authorized by such
State to bring such actions, from exercising the pow-
ers conferred on the attorney general or such offi-
cers by the laws of such State to conduct investiga-
tions or to administer oaths or affirmations or to
compel the attendance of witnesses or the production
of documentary and other evidence.
‘‘(4) LIMITATION
ON
STATE
ACTION
WHILE
FEDERAL
ACTION
IS
PENDING.—If any Federal
agency described in subsection (a) has instituted an
enforcement action for a violation of this subtitle, no
State may, during the pendency of such action,
bring an action under this subsection against any
depository institution named in the enforcement ac-
tion for any violation of this subtitle that is alleged
in that action.’’.
SEC. 3. CIVIL LIABILITY PROVISIONS.
(a) CIVIL LIABILITY PROVISION CONTINUED IN EF-
FECT.—
(1) IN
GENERAL.—Subsection (a) of section
2604 of Public Law 104–208 (110 Stat. 3009—
470) is amended to read as follows:
‘‘(a) [Repealed]’’.
(2) RULE OF CONSTRUCTION.—The enactment
of section 2604(a) of Public Law 104–208, as in ef-
fect prior to the repeal of such section by paragraph
(1) of this subsection) shall not be construed as af-
fecting the continued application of section 271 of
the Truth in Savings Act (12 U.S.C. 4310) after the
end of the 5-year period beginning on the date of the
enactment of Public Law 104–208.
(b) ADJUSTMENT OF CIVIL LIABILITY AMOUNTS FOR
INFLATION.—Paragraph (2) of section 271(a) of the
Truth in Savings Act (12 U.S.C. 4310(a)) is amended—
(1) in subparagraph (A)—
(A) by striking ‘‘$100’’ and inserting
‘‘$200’’; and
(B) by striking ‘‘$1,000’’ and inserting
‘‘$5,000’’; and
(2) in subparagraph (B)(ii), by striking ‘‘lesser
of $500,000 or 1 percent of the net worth of the de-
pository institution involved’’ and inserting ‘‘the
greater of—
‘‘(I) the amount determined by
multiplying the maximum amount of
liability under subparagraph (A) for
such failure to comply in an individual
action by the number of members in
the certified class; or
‘‘(II) the amount equal to 2 per-
cent of the net worth of the depository
institution.’’.
(c) STATUTE OF LIMITATIONS.—Subsection (f) of
section 271 of the Truth in Savings Act (12 U.S.C.
4310(e)) is amended by striking ‘‘within 1 year after the
date of the occurrence of the violation involved’’ and in-
serting ‘‘before the end of the 1-year period beginning on
the later of—
‘‘(1) the date of the occurrence of the violation
involved; or
‘‘(2) the date on which the customer first
learned, or reasonably should have learned, based on
all the facts and circumstances and information
available to the public, of the violation.’’.
(d) ACCESS TO COURT PROVISION.—Section 271 of
the Truth in Savings Act (12 U.S.C. 4310) is amended
by adding at the end the following new subsection:
‘‘(j) AVAILABILITY OF STATUTORY REMEDIES.—
‘‘(1) IN GENERAL.—No provision of any agree-
ment or contract between a consumer and any de-
pository institution, relating to a deposit account,
which requires binding arbitration or any other non-
judicial procedure to resolve any controversy or set-
tle any claim arising out of such contract or any
transaction covered by the contract, or the refusal to
perform the whole or any part of the transaction,
shall be enforceable to the extent that the construc-
tion or application of such provision with respect to
such controversy, claim, or refusal would deny the
consumer the right to bring any action under this
section or any other provision of this subtitle for any
liability of the depository institution to the consumer
under this subtitle.
‘‘(2) RULE OF CONSTRUCTION.—Paragraph (1)
shall not be construed as creating any inference that
any provision of any contract or agreement described
in such paragraph could be construed so as to deny
any consumer the right to bring an action under this
subtitle absent this subsection.’’.
SEC. 4. EFFECT ON STATE LAW.
Section 273 of the Truth in Savings Act (12 U.S.C.
4312) is amended by adding at the end the following new
sentence: ‘‘The Board may not determine that any State
law is inconsistent with any provision of this subtitle if
the Board determines that the protection such State law
affords any consumer is greater than the protection pro-
vided by this subtitle.’’.
SEC. 5. EFFECTIVE DATE.
The amendments made by this Act to the Truth in
Savings Act shall take effect at the end of the 60-day pe-
riod beginning on the date of the enactment of this Act.
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