ed as a violation of a rule defining an unfair or deceptive 
act or practice prescribed under section 18(a)(1)(B) of the 
Federal Trade Commission Act (15 U.S.C. 57a(a)(1)(B)). 
‘‘SEC. 1013. ACTION BY STATES. 
‘‘(a) IN GENERAL.—In any case in which the attor-
ney general of a State has reason to believe that an inter-
est of the residents of the State has been or is threatened 
or adversely affected by the engagement of any person 
subject to a provision of this title or a rule prescribed 
under section 1010 in a practice that violates such provi-
sion or rule, the State may, as parens patriae, bring a 
civil action on behalf of the residents of the State in an 
appropriate district court of the United States or other 
court of competent jurisdiction— 
‘‘(1) to enjoin that practice; 
‘‘(2) to enforce compliance with the provision or 
rule; or 
‘‘(3) to obtain damages under section 1011 on 
behalf of residents of the State. 
‘‘(b) ATTORNEYS’ FEES.—In the case of any success-
ful action under paragraph (1), (2), or (3) of subsection 
(a), the attorney general of the State bringing the action 
shall be awarded the costs of the action and reasonable 
attorneys’ fees as determined by the court. 
‘‘(c) RIGHTS OF FEDERAL TRADE COMMISSION.— 
VerDate Mar 15 2010 
06:53 May 26, 2010
Jkt 089200
PO 00000
Frm 00032
Fmt 6652
Sfmt 6201
E:\BILLS\H5387.IH
H5387
jbell on DSKDVH8Z91PROD with BILLS
‘‘(1) NOTICE
TO
FEDERAL
TRADE
COMMIS-
SION.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (C), the attorney general of a 
State shall notify the Federal Trade Commis-
sion in writing of any civil action under sub-
section (a), prior to initiating such civil action. 
‘‘(B) CONTENTS.—The notice required by 
subparagraph (A) shall include a copy of the 
complaint to be filed to initiate such civil ac-
tion. 
‘‘(C) EXCEPTION.—If it is not feasible for 
the attorney general of a State to provide the 
notice required by subparagraph (A), the State 
shall provide notice immediately upon insti-
tuting a civil action under subsection (a). 
‘‘(2) INTERVENTION BY FEDERAL TRADE COM-
MISSION.—Upon receiving notice required by para-
graph (1) with respect to a civil action, the Commis-
sion may— 
‘‘(A) intervene in such action; and 
‘‘(B) upon intervening— 
‘‘(i) be heard on all matters arising in 
such civil action; 
VerDate Mar 15 2010 
06:53 May 26, 2010
Jkt 089200
PO 00000
Frm 00033
Fmt 6652
Sfmt 6201
E:\BILLS\H5387.IH
H5387
jbell on DSKDVH8Z91PROD with BILLS
‘‘(ii) remove the action to the appro-
priate district court of the United States; 
and 
‘‘(iii) file petitions for appeal of a de-
cision in such action. 
‘‘(d) INVESTIGATORY POWERS.—Nothing in this sec-
tion may be construed to prevent the attorney general of 
a State from exercising the powers conferred on such at-
torney general by the laws of such State to conduct inves-
tigations or to administer oaths or affirmations or to com-
pel the attendance of witnesses or the production of docu-
mentary and other evidence. 
‘‘(e) EFFECT OF ACTION BY FEDERAL TRADE COM-
MISSION.—If the Federal Trade Commission institutes a 
civil action or an administrative action to enforce a viola-
tion of a provision of this title or a rule prescribed under 
section 1010, no State may, during the pendency of such 
action, bring a civil action under subsection (a) against 
any defendant named in the complaint of the Commission 
for violation of a provision of this title or rule prescribed 
under section 1010 that is alleged in such complaint. 
‘‘(f) ACTIONS BY OTHER STATE OFFICIALS.— 
‘‘(1) IN
GENERAL.—In addition to actions 
brought by an attorney general of a State under 
VerDate Mar 15 2010 
06:53 May 26, 2010
Jkt 089200
PO 00000
Frm 00034
Fmt 6652
Sfmt 6201
E:\BILLS\H5387.IH
H5387
jbell on DSKDVH8Z91PROD with BILLS
subsection (a), an action may be brought by officials 
in a State who are so authorized. 
‘‘(2) SAVINGS PROVISION.—Nothing contained 
in this section may be construed to prohibit an au-
thorized official of a State from proceeding in a 
court of such State on the basis of an alleged viola-
tion of any civil or criminal statute of such State. 
‘‘SEC. 1014. STATUTE OF LIMITATIONS. 
‘‘Any action to enforce any liability under section 
1011 may be brought before the later of— 
‘‘(1) the end of the 5-year period beginning on 
the date of the occurrence of the violation involved; 
or 
‘‘(2) in any case in which any debt settlement 
provider has materially and willfully misrepresented 
any information that the debt settlement provider is 
required, by any provision of this title, to disclose to 
any consumer and that is material to the establish-
ment of the debt settlement provider’s liability to the 
consumer under this title, the end of the 5-year pe-
riod beginning on the date of the discovery by the 
consumer of the violation. 
‘‘SEC. 1015. RELATION TO STATE LAW. 
‘‘This title shall not annul, alter, affect, or exempt 
any person subject to the provisions of this title from com-
VerDate Mar 15 2010 
06:53 May 26, 2010
Jkt 089200
PO 00000
Frm 00035
Fmt 6652
Sfmt 6201
E:\BILLS\H5387.IH
H5387
jbell on DSKDVH8Z91PROD with BILLS
plying with the law of any State except to the extent that 
such law is inconsistent with any provision of this title, 
and then only to the extent of the inconsistency. For pur-
poses of this section, a State statute, regulation, order, 
or interpretation is not inconsistent with the provisions of 
this title if the protection such statute, regulation, order, 
or interpretation affords any person is greater than the 
protection provided under this title and any subsequent 
amendments. Nothing in this title shall limit or prohibit 
a State from prohibiting or otherwise restricting the provi-
sion of debt settlement services, or imposing and admin-
istering a system of additional requirements, prohibitions, 
registration, or licensure.’’. 
(b) INITIAL REGULATIONS.— 
(1) IN GENERAL.—Not later than 60 days after 
the date of the enactment of this Act, the Federal 
Trade Commission shall commence a rulemaking to 
prescribe the following: 
(A) The form of the written notices re-
quired under subparagraphs (M) and (N) of 
subsection (a)(2) and subsection (b)(5) of sec-
tion 1002 of the Consumer Credit Protection 
Act, as added by subsection (a) of this section. 
(B) The form of the statement required 
under subsection (e) of such section 1002. 
VerDate Mar 15 2010 
06:53 May 26, 2010
Jkt 089200
PO 00000
Frm 00036
Fmt 6652
Sfmt 6201
E:\BILLS\H5387.IH
H5387
jbell on DSKDVH8Z91PROD with BILLS
(2) DEADLINE.—The Federal Trade Commis-
sion shall complete the rulemaking required by para-
graph (1) not later than 1 year after the date of the 
enactment of this Act. 
(3) PROCEDURE.—All rulemaking under para-
graph (1) shall be conducted in accordance with sec-
tion 553 of title 5, United States Code, and shall 
not be subject to other procedures set forth in sec-
tion 18 of the Federal Trade Commission Act (15 
U.S.C. 57a). 
(c) EFFECTIVE DATE.—Title X of the Consumer 
Credit Protection Act, as added by subsection (a) of this 
section, shall take effect on the date that is 60 days after 
the date of the enactment of this Act. 
Æ 
VerDate Mar 15 2010 
06:53 May 26, 2010
Jkt 089200
PO 00000
Frm 00037
Fmt 6652
Sfmt 6301
E:\BILLS\H5387.IH
H5387
jbell on DSKDVH8Z91PROD with BILLS