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that, in the Director’s judgment, is not required 
to meet the current needs of such fund. 
(B) 
ELIGIBLE
INVESTMENTS.—Invest-
ments pursuant to subparagraph (A) shall be 
made by the Secretary in obligations of the 
United States or obligations that are guaran-
teed as to principal and interest by the United 
States, with maturities suitable to the needs of 
the Agency fund involved, as determined by the 
Director. 
(C) INTEREST
AND
PROCEEDS
CRED-
ITED.—The interest on, and the proceeds from 
the sale or redemption of, any obligations held 
in the respective Agency Fund shall be credited 
to and form a part of the respective Agency 
Fund. 
(3) EXCEPTION.—Notwithstanding paragraph 
(1), an attorney’s activities related to assisting an-
other person in preventing a foreclosure shall be 
subject to this title except to the extent such activi-
ties constitute, or are incidental to, the provision of 
legal services to a client of the attorney. 
(g) PENALTIES AND FINES.— 
(1) 
ESTABLISHMENT
OF
VICTIMS
RELIEF 
FUND.—There is established in the Treasury of the 
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United States a fund to be known as the ‘‘Consumer 
Financial Protection Agency Civil Penalty Fund’’ 
(hereafter in this section referred to as the ‘‘Civil 
Penalty Fund’’). 
(2) DEPOSITS.—If the Agency obtains a civil 
penalty against any person in any judicial or admin-
istrative action under this title, any law or authority 
transferred under subtitles F and H, or any enumer-
ated consumer law, the Agency shall deposit into the 
Civil Penalty Fund the amount of the penalty col-
lected. 
(3) PAYMENT
TO
VICTIMS.—Amounts in the 
Civil Penalty Fund shall be available to the Director, 
without fiscal year limitation, for payments to the 
victims of activities for which civil penalties have 
been imposed under this title, the law and authori-
ties transferred under subtitles F and H, or any 
enumerated consumer law. 
(4) FINANCIAL EDUCATION AND COUNSELING 
PROGRAM.— 
(A) IN GENERAL.—To the extent such vic-
tims cannot be located or such payments are 
otherwise not practicable, 5 percent of the Vic-
tims Relief Fund shall be transferred, up to 
$10,000,000 on an annual basis, to the Sec-
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retary of the Treasury so that the Secretary 
may carry out the Financial Education and 
Counseling Grant Program established under 
section 1132 of the Housing and Economic Re-
covery Act of 2008 (12 U.S.C. 1701). 
(B) MEMORANDUM OF UNDERSTANDING.— 
Not later than 12 months after the date of en-
actment of this subtitle, the Director shall enter 
into a memorandum of understanding with the 
Secretary of the Treasury to coordinate the re-
lease of Civil Penalty Fund amounts under sub-
paragraph (A). 
(C) ASSISTANCE FOR INDIVIDUALS AT FI-
NANCIAL RISK.—Section 1132 of the Housing 
and Economic Recovery Act of 2008 (12 U.S.C. 
1701) is amended— 
(i) in subsection (a), by striking ‘‘pro-
spective homebuyers’’ each place that term 
appears and inserting ‘‘individuals at fi-
nancial risk’’; 
(ii) in subsection (b)— 
(I) in paragraph (1), by striking 
‘‘prospective homebuyers’’ and insert-
ing ‘‘individuals at financial risk’’; 
and 
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(II) by adding at the end the fol-
lowing: 
‘‘(3) DETERMINATION
OF
FINANCIAL
RISK.— 
For purposes of this section, the Director of the 
Consumer Financial Protection Agency shall estab-
lish the criteria used to determine whether an indi-
vidual is at financial risk, and the Secretary shall 
use such criteria when selecting organizations under 
paragraph (2).’’; and 
(iii) in subsection (c)(1)— 
(I) in subparagraph (A), by strik-
ing ‘‘or’’; 
(II) in subparagraph (B), by 
striking the period and inserting ‘‘; 
or’’; and 
(III) by adding at the end the 
following: 
‘‘(C) a nonprofit corporation that— 
‘‘(i) is exempt from taxation under 
section 501(c)(3) of the Internal Revenue 
Code of 1986; and 
‘‘(ii) specializes or has expertise in 
working with individuals at financial 
risk.’’. 
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(h) ASSESSMENTS FOR CERTAIN NONDEPOSITORY 
INSTITUTION COVERED PERSONS.— 
(1) IN GENERAL.—Notwithstanding any other 
provision of this Act, a nondepository institution 
covered person shall not be subject to assessments 
by the Agency if— 
(A) the assets that are financial activities 
of that nondepository covered person represent 
less than a substantial portion of its total as-
sets; and 
(B) the gross revenues derived from finan-
cial activities of that nondepository covered per-
son are less than a substantial portion of its 
gross revenues. 
(2) EXTENSIVE
CONSUMER
FINANCIAL
PROD-
UCTS
OR
SERVICES
OPERATIONS.—Paragraph (1) 
shall not apply to nondepository institution covered 
person that the Director determines has a level of 
assets or revenues derived from financial activities, 
a number of transactions in consumer financial 
products or services, or a number of accounts relat-
ing to consumer financial products or services that 
the Director determines represents an extensive con-
sumer financial products or services operation. 
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SEC. 4112. AMENDMENTS RELATING TO OTHER ADMINIS-
TRATIVE PROVISIONS. 
(a) ACT OF OCTOBER 28, 1974.—Section 111 of 
Public Law 93–495 (12 U.S.C. 250) is amended by insert-
ing ‘‘the Consumer Financial Protection Agency,’’ after 
‘‘Federal Deposit Insurance Corporation,’’. 
(b) PAPERWORK REDUCTION ACT.—Section 2(5) of 
the Paperwork Reduction Act (44 U.S.C. 3502(5)) by in-
serting ‘‘the Consumer Financial Protection Agency,’’ 
after ‘‘the Securities and Exchange Commission,’’. 
SEC. 4113. OVERSIGHT BY GAO. 
(a) AUTHORITY.—The Comptroller General may 
audit the programs, activities, receipts, expenditures, and 
financial transactions of the Agency and of any agents and 
representatives of the Agency as related to the agent’s or 
representative’s activities on behalf of or under authority 
of the Agency. 
(b) ACCESS.—Notwithstanding any other provision of 
law, the Comptroller General shall have access, upon re-
quest, to any information, data, schedules, books, ac-
counts, financial records, reports, files, electronic commu-
nications, or other papers, things, or property belonging 
to or in use by the Agency, or any vehicles established 
by the Agency under this Act, and to the directors, offi-
cers, employees, independent public accountants, financial 
advisors, staff, working groups, and agents and represent-
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atives of the Agency (as related to the agent’s or rep-
resentative’s activities on behalf of the Agency) or any ve-
hicle established by the Agency at such reasonable time 
as the Comptroller General may request. The Comptroller 
General may make and retain copies of such books, ac-
counts, and other records as the Comptroller General 
deems appropriate. 
SEC. 4114. EFFECTIVE DATE. 
This subtitle shall take effect on the date of the en-
actment of this title. 
Subtitle B—General Powers of the 
Director and Agency 
SEC. 4201. MANDATE AND OBJECTIVES. 
(a) MANDATE.—The Director shall seek to promote 
transparency, simplicity, fairness, accountability, and 
equal access in the market for consumer financial products 
or services. 
(b) OBJECTIVES.—The Director may exercise the au-
thorities granted in this title, in the enumerated consumer 
laws, and transferred under subtitles F and H for the pur-
poses of ensuring that, with respect to consumer financial 
products or services— 
(1) consumers have and can use the informa-
tion they need to make responsible decisions about 
consumer financial products or services; 
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(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 equal access to responsible finan-
cial services. 
SEC. 4202. AUTHORITIES. 
(a) IN GENERAL.—The Director may exercise the au-
thorities granted in this title, in the enumerated consumer 
laws, and transferred under subtitles F and H, to admin-
ister, enforce, and otherwise implement the provisions 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 Director may prescribe 
regulations and issue orders and guidance as may be 
necessary 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 of this title, any such authority, 
and any such law. 
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(2) STANDARDS
FOR
RULEMAKING.—In pre-
scribing a regulation under this title or pursuant to 
the authorities transferred under subtitles F and H 
or the enumerated consumer laws, the Director 
shall— 
(A) consider the potential benefits and 
costs to consumers, covered persons, and the 
Federal Government, including the potential re-
duction of consumers’ access to consumer finan-
cial products or services, resulting from such 
regulation; and 
(B) consult with the Federal banking agen-
cies, State bank supervisors, the Federal Trade 
Commission, or other Federal agencies, as ap-
propriate, regarding the consistency of a pro-
posed regulation with prudential, consumer pro-
tection, civil rights, market, or systemic objec-
tives administered by such agencies or super-
visors and whether such regulation will have an 
inconsistent effect on nondepository institution 
covered persons and depository institution cov-
ered persons. 
(3) EXEMPTIONS.— 
(A) IN GENERAL.—The Director, by regu-
lation or order, may conditionally or uncondi-
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tionally exempt any covered person, service pro-
vider, or any consumer financial product or 
service or any class of covered persons, class of 
service providers, or consumer financial prod-
ucts or services, from any provision of this title, 
any enumerated consumer law, or from any reg-
ulation under any such provision or law, as the 
Director deems necessary or appropriate to 
carry out the purposes and objectives of this 
title taking into consideration the factors in 
subparagraph (B). 
(B) FACTORS.—In issuing an exemption 
by regulation or order as permitted in subpara-
graph (A), the Director shall as appropriate 
take into consideration the following: 
(i) The total assets of the covered per-
son. 
(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. 
(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) RULE OF CONSTRUCTION.—No provi-
sion of this section shall be construed as alter-
ing, amending, or affecting any authority under 
sections 304(a), 304(i), 305(a), and 306(b) of 
the Home Mortgage Disclosure Act of 1975 and 
sections 
703(a)(1), 
703(a)(2), 
703(a)(3), 
705(f), and 705(g) of the Equal Credit Oppor-
tunity Act for determining whether a covered 
person should be provided an exemption. 
(c) EXAMINATIONS AND REPORTS.— 
(1) IN GENERAL.—Except as provided under 
section 4203, the Director may on a periodic basis 
examine a covered person or service provider, with 
respect to any consumer financial product or service, 
for purposes of ensuring compliance with the re-
quirements of this title, the enumerated consumer 
laws, and any regulations prescribed by the Director 
under this title or pursuant to the authorities trans-
ferred under subtitles F and H, and enforcing com-
pliance with such requirements. 
(2) EXAMINATION
PROGRAM.—The Director 
shall exercise any authority of the Director under 
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paragraph (1) in a manner designed to ensure that 
such authorities are exercised with respect to cov-
ered persons or service providers, without regard to 
charter or corporate form, based on the Director’s 
assessment of the risks posed to consumers in the 
relevant product markets and geographic markets, 
and taking into consideration, as applicable, the fol-
lowing factors: 
(A) The asset size of the covered persons. 
(B) The volume of transactions involving 
consumer financial products or services in 
which the covered persons engage. 
(C) The risks to consumers created by the 
provision of such consumer financial products 
or services. 
(D) In the case of State-chartered institu-
tions, the extent to which such institutions are 
subject to oversight by State authorities for 
consumer protection. 
(3) COORDINATION.—The Director shall coordi-
nate the Agency’s supervisory activities with the su-
pervisory activities conducted by the Federal bank-
ing agencies and the State bank supervisors, includ-
ing establishing their respective schedules for exam-
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ining covered persons and requirements regarding 
reports to be submitted by covered persons. 
(4) REPORTS.—The Director may require re-
ports from a covered person for purposes of ensuring 
compliance with the requirements of this title, the 
enumerated consumers laws, and any regulation pre-
scribed by the Director under this title or pursuant 
to the authorities transferred under subtitles F and 
H, and enforcing compliance with such require-
ments. 
(5) CONTENT OF REPORTS.—The reports au-
thorized in paragraph (4) 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. 
(6) USE OF EXISTING REPORTS.—In general, 
the Agency shall, to the fullest extent possible, use— 
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(A) reports that a covered person, or any 
affiliate thereof, or any service provider to such 
covered person or affiliate, has provided or been 
required to provide to a Federal or State agen-
cy; and 
(B) information that has been reported 
publicly. 
(7) 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, including a report containing 
data regarding consumer complaints, made by a 
Federal banking agency or other Federal agen-
cy having supervision of a covered person, or a 
service provider, (other than returns and return 
information described in section 6103 of the In-
ternal Revenue Code of 1986) and to all revi-
sions made to any such report. 
(B) PROVISION
OF
OTHER
REPORTS
TO 
AGENCY.—In addition to the reports described 
in subparagraph (A), a Federal banking agency 
may, in its discretion, furnish to the Agency 
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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. 
(8) ACCESS
BY
OTHER
REGULATORS
TO
RE-
PORTS OF THE AGENCY.— 
(A) EXAMINATION
REPORTS.—Upon pro-
viding 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 re-
spect to the covered person or service provider, 
and to all revisions made to any such report. 
(B) PROVISION
OF
OTHER
REPORTS
TO 
OTHER REGULATORS.—In addition to the re-
ports described in paragraph (A), the Agency 
may, in the discretion of the Agency, furnish to 
a Federal banking agency any other report or 
other confidential supervisory information con-
cerning any insured depository institution, any 
credit union, or other entity examined by the 
Agency under authority of any Federal law. 
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(9) 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. No provision of this 
title shall be construed as limiting the authority of 
the Director to require reports from a covered per-
son, as permitted under paragraph (4), regarding in-
formation owned or under the control of the covered 
person, regardless of whether such information is 
maintained, stored, or processed by another person. 
(10) REPORTS
OF
TAX
LAW
NONCOMPLI-
ANCE.—The Director shall provide the Commis-
sioner of Internal Revenue with any report of exam-
ination or related information identifying possible 
tax law noncompliance. 
(11) DELEGATION.— 
(A) IN GENERAL.—The Director may dele-
gate the examination authorities of the Agency 
under this title to any appropriate agency, as 
defined in section 4203, for any insured deposi-
tory institution or insured credit union that is 
not subject to section 4203 upon a petition by 
an appropriate agency. 
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(B) STANDARD
FOR
DELEGATION.—The 
Director shall provide such delegation if, in the 
Director’s sole discretion, the Director deter-
mines that— 
(i) the delegation is consistent with 
the public interest; 
(ii) the appropriate agency is capable 
of enforcing compliance with this title, and 
with any regulation prescribed under this 
title; and 
(iii) such capability is comparable to 
or superior to the capability of the Agency, 
in terms of expertise, demonstrated com-
mitment, and overall effectiveness, in en-
forcing such compliance. 
(C) EFFECT
OF
DELEGATION.—The in-
sured depository institution or insured credit 
union shall be subject to the examination proc-
ess described in section 4203(b). 
(D) NO EFFECT ON ENFORCEMENT.—The 
Director’s delegation authority under this para-
graph shall not apply to the Director’s enforce-
ment responsibilities under subsection (e). 
(d) EXCLUSIVE RULEMAKING
AND EXAMINATION 
AUTHORITY.—Notwithstanding any other provision of 
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Federal law other than section 4203 and subsections (f) 
and (h) of this section, to the extent that a Federal law 
authorizes the Director and another Federal agency to 
prescribe regulations, issue guidance, conduct examina-
tions, or require reports under a provision of that law for 
purposes of assuring compliance with this title, a provision 
of any enumerated consumer law, any provision of the 
laws for which authorities were transferred under subtitles 
F and H, and any regulations prescribed under this title 
or pursuant to any such authority, the Director shall have 
the exclusive authority under that provision of law to pre-
scribe regulations, issue guidance, conduct examinations, 
require reports, or issue exemptions with regard to any 
person subject to that law and with respect to any activity 
regulated under any enumerated consumer 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 a provision of a law, the Agency 
shall have primary enforcement authority to enforce 
the provision of that Federal law with respect to any 
person in accordance with this subsection. 
(2) COORDINATION WITH THE FEDERAL TRADE 
COMMISSION.— 
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for any violation of any Federal law described 
in paragraph (1), or a regulation prescribed 
under any such Federal law, the other entity 
may not, during the pendency of that action, in-
stitute a civil action under such law or regula-
tion against any defendant named in the com-
plaint in such pending action for any violation 
alleged in the complaint. 
(D) AGREEMENTS BETWEEN ENTITIES.— 
(i) 
NEGOTIATIONS
AUTHORIZED.— 
The Agency and the Federal Trade Com-
mission may negotiate an agreement to es-
tablish procedures to ensure that the en-
forcement actions of the 2 agencies are ap-
propriately coordinated. 
(ii) SCOPE
OF
NEGOTIATED
AGREE-
MENT.—The terms of any agreement nego-
tiated pursuant to clause (i) may modify or 
supersede the provisions of subparagraphs 
(A), (B), and (C). 
(3) COORDINATION
WITH
OTHER
FEDERAL 
AGENCY.— 
(A) 
REFERRAL.—Any 
Federal 
agency 
(other than the Federal Trade Commission) 
that is authorized to enforce a Federal law de-
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scribed in paragraph (1) may recommend in 
writing to the Director that the Agency initiate 
an enforcement proceeding to the extent the 
Agency is authorized by that Federal law or by 
this title. The recommendation shall be accom-
panied by a written explanation of the concerns 
giving rise to the recommendation. 
(B) 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 Director re-
ceives a recommendation under subparagraph 
(A), initiate an enforcement proceeding, the 
other agency referred to in subparagraph (A) 
may initiate an enforcement proceeding as per-
mitted by that Federal law. 
(4) INSTITUTIONS SUBJECT TO SPECIAL EXAM-
INATION
AND
ENFORCEMENT
PROCEDURES.—This 
subsection shall not apply to institutions subject to 
section 4203. 
(f) PRESERVATION OF OTHER AUTHORITY.— 
(1) ATTORNEY GENERAL.—No provision of this 
title shall be construed as affecting any authority of 
the Attorney General. 
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(2) SECRETARY OF THE TREASURY.—No provi-
sion of this title shall be construed as affecting any 
authority of the Secretary of the Treasury, including 
with respect to prescribing regulations, initiating en-
forcement proceedings, or taking other actions with 
respect to a person providing tax planning or tax 
preparation services. 
(3) FAIR HOUSING ACT.—No provision of this 
title shall be construed as affecting any authority 
arising under the Fair Housing Act. 
(g) EFFECT ON OTHER AUTHORITY.—No provision 
of this section or section 4203 shall be construed as modi-
fying or limiting the authority of any appropriate Federal 
banking agency or the Director or Agency to interpret, 
or take enforcement action under, any law or regulation 
the interpretation or enforcement of which is committed 
to the banking agency or the Director or Agency, which 
shall include, in the case of the Director and the Agency, 
this title, the enumerated consumer laws, and the regula-
tions prescribed under this title or such laws. 
(h) PRESERVATION OF FEDERAL TRADE COMMIS-
SION AUTHORITY.—No provision of this title shall be con-
strued as modifying, limiting, or otherwise affecting the 
authority of the Federal Trade Commission under the 
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Federal Trade Commission Act or other laws other than 
the enumerated consumer laws. 
(i) PRESERVATION OF FARM CREDIT ADMINISTRA-
TION AUTHORITY.—No provision of this title shall be con-
strued as modifying, limiting, or otherwise affecting the 
authority of the Farm Credit Administration. 
SEC. 4203. EXAMINATION AND ENFORCEMENT FOR SMALL 
BANKS, THRIFTS, AND CREDIT UNIONS. 
(a) SCOPE OF INSTITUTIONS SUBJECT TO THIS SEC-
TION.— 
(1) INSTITUTIONS
COVERED.—This section 
shall apply to— 
(A) any insured depository institution with 
total assets of $10,000,000,000 or less; or 
(B) any insured credit union with total as-
sets of $10,000,000,000 or less. 
(2) APPROPRIATE
AGENCY.—For purposes of 
this title, the term ‘‘appropriate agency’’ means— 
(A) in the case of an insured depository in-
stitution, the appropriate Federal banking 
agency as such term is defined in section 3 of 
the Federal Deposit Insurance Act; and 
(B) in the case of an insured credit union, 
the National Credit Union Administration. 
(b) EXAMINATIONS.— 
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(1) IN
GENERAL.—The appropriate agency 
shall on a periodic basis examine, or require reports 
from, an institution referred to in subsection (a) for 
purposes of ensuring compliance with the require-
ments of this title, the enumerated consumer laws, 
and any regulation prescribed by the Director under 
this title or pursuant to the authorities transferred 
under subtitles F and H, and enforcing compliance 
with such requirements. 
(2) AGENCY ROLE IN EXAMINATIONS.— 
(A) The appropriate agency shall provide 
all reports, records, and documentation related 
to the examination process to the Agency on a 
timely and ongoing basis. 
(B) The Director and Agency may, at its 
discretion, include an examiner on any examina-
tion conducted under paragraph (1). The ap-
propriate agency shall involve such Agency ex-
aminer in the entire examination process, in-
cluding setting the scope of an examination, 
participating in the examination, and providing 
input on the examination report, matters re-
quiring attention and examination ratings. 
(c) ENFORCEMENT.— 
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(1) IN GENERAL.—Notwithstanding any other 
provision of this title other than this subsection, the 
appropriate agency shall have primary authority to 
enforce violations identified at institutions referred 
to in subsection (a) of any of the requirements of 
this title, the enumerated consumers laws, and any 
regulation prescribed by the Director under this title 
or pursuant to the authorities transferred under 
subtitles F and H. 
(2) COORDINATION WITH APPROPRIATE AGEN-
CY.— 
(A) REFERRAL.— 
(i) IN
GENERAL.—The Agency may 
recommend in writing to the appropriate 
agency that the appropriate agency initiate 
an enforcement proceeding to the extent 
the appropriate agency is authorized by 
that Federal law or by this title. 
(ii) 
EXPLANATION.—Any 
rec-
ommendation under clause (i) shall be ac-
companied by a written explanation of the 
concerns giving rise to the recommenda-
tion. 
(B) BACKSTOP ENFORCEMENT AUTHORITY 
OF AGENCY.—If the appropriate agency does 
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not, before the end of the 120-day period begin-
ning on the date on which the appropriate 
agency receives a recommendation under sub-
paragraph (A), initiate an enforcement pro-
ceeding, the Agency may initiate an enforce-
ment proceeding as permitted by Federal law. 
(d) ACTIONS ARISING OUT
OF CONSUMER COM-
PLAINT SYSTEM.—Notwithstanding any provision of this 
section, if through the consumer complaint system admin-
istered by the Agency under section 4105(c)(3), the Direc-
tor has reasonable cause to believe that an institution re-
ferred to in subsection (a) demonstrates noncompliance 
with any provision of this title, the enumerated consumer 
laws, or any regulation prescribed by the Director under 
this title or pursuant to the authorities transferred under 
subtitles F and H, the Director may directly investigate 
such institution for such noncompliance and take any ac-
tion permitted under subtitle E that the Director deems 
appropriate. 
(e) REMOVAL OF APPROPRIATE AGENCY FOR PAR-
TICULAR INSTITUTION.— 
(1) HEIGHTENED
SUPERVISION.—The Direc-
tor— 
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(A) may provide notice to an appropriate 
agency that the Director is considering issuing 
a removal order under paragraph (2); and 
(B) shall have an Agency examiner partici-
pate in the examination process under sub-
section (b) for at least 1 examination cycle. 
(2) REMOVAL BY ORDER.—If, after the comple-
tion of at least 1 examination cycle following the 
provision of notice to an appropriate agency under 
paragraph (1), the Director determines in writing 
that the appropriate agency has failed to adequately 
conduct consumer compliance examinations or bring 
appropriate enforcement actions against an institu-
tion referred to in subsection (a), the Director may 
order the removal of the appropriate agency from its 
responsibilities under this section for such institu-
tion. 
(3) AGENCY
AUTHORITY
UPON
REMOVAL.— 
Upon removal pursuant to paragraph (2), the Agen-
cy shall examine and enforce against such institution 
as if the institution were subject to section 4202. 
(4) EFFECTIVE DATE.—An order under para-
graph (2) shall take effect 30 days after a deter-
mination by the Secretary of the Treasury pursuant 
to paragraphs (5) and (6). 
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(5) AUTOMATIC APPEAL.—An order issued by 
the Director pursuant to paragraph (2) shall be 
automatically appealed to the Secretary. 
(6) DECISION
BY
THE
SECRETARY
OF
THE 
TREASURY.— 
(A) DETERMINATION.—The order issued 
pursuant to paragraph (2) shall be deemed af-
firmed unless the Secretary of the Treasury de-
nies the determination of the Director within 
120 days of the issuance of the order pursuant 
to paragraph (2). 
(B) RULE OF CONSTRUCTION.—Nothing in 
subparagraph (A) shall be construed as prohib-
iting the Secretary of the Treasury from mak-
ing a determination to either affirm or deny an 
order issued pursuant to paragraph (2) prior to 
the passage of the time period in subparagraph 
(A). 
(7) REGULATIONS.—By the transfer date, the 
Secretary shall issue regulations that establish the 
standards the Director shall apply in making a de-
termination to remove an appropriate agency and 
the process, procedures, and standards for an ap-
peal. Such standards shall require the Director to 
consider at least the following in issuing an order re-
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moving an appropriate agency for an institution re-
ferred to in subsection (a)(1): 
(A) Reports of examination of such institu-
tion. 
(B) Any enforcement actions taken by an 
appropriate agency against such institution and 
the results of those actions. 
(C) Consumer complaints issued against 
such institution. 
(D) Actions taken by State attorneys gen-
eral and private rights of action against such 
institution. 
(f) POLICIES AND PROCEDURES.—Within 180 days 
after the designated transfer date, the Agency and the ap-
propriate agency shall develop policies and procedures for 
implementing this section. 
(g) ASSESSMENTS.— 
(1) LIMITATION ON CERTAIN FEES.—The Agen-
cy shall not assess examination fees on an institution 
referred to in subsection (a). 
(2) RULE OF CONSTRUCTION.—No provision of 
this section shall be construed as preventing the ap-
propriate agency from assessing fees on an institu-
tion referred to in paragraph (1) to meet the appro-
priate agency’s expenses for carrying out such exam-
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ination and supervision responsibilities pursuant to 
this section. 
(h) ASSISTIVE DIVISION FOR COMMUNITY FINANCIAL 
INSTITUTIONS.— 
(1) ESTABLISHMENT; PURPOSE.—There is es-
tablished in the Agency an office to be known as the 
‘‘Assistive Division for Community Financial Institu-
tions’’ to advise the Director on the impact of Agen-
cy policies and regulations on community financial 
institutions and to help ensure that the policies and 
regulations of the Agency do not unduly burden 
community financial institutions. 
(2) ADDITIONAL DUTIES.—The Assistive Divi-
sion for Community Financial Institutions shall 
also— 
(A) provide assistance to and respond to 
inquiries from community financial institutions 
regarding policies of the Agency and the effects 
of such policies on community financial institu-
tions; 
(B) provide educational materials, training 
aides, and support to community financial insti-
tutions with respect to any new regulatory obli-
gations the Agency establishes during the initial 
rule-making period; 
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(C) establish and maintain a toll-free tele-
phone number, to be available at least 8 hours 
a day and 7 days a week, at which community 
financial institution may make inquiries and re-
ceive assistance under subparagraph (A); and 
(D) perform other duties and exercise such 
other powers set by the Director. 
SEC. 4204. SIMULTANEOUS AND COORDINATED SUPER-
VISORY ACTION. 
(a) EXAMINATIONS.—A Federal banking agency and 
the Agency shall, with respect to each insured depository 
institution, credit union, or other covered person super-
vised by the Federal banking agency and the Agency, re-
spectively— 
(1) coordinate the scheduling of examinations of 
the insured depository institution, and credit union, 
or other covered person; 
(2) conduct simultaneous examinations of each 
insured depository institution, credit union or other 
covered person, unless such institution requests ex-
aminations to be conducted separately; 
(3) share each draft report of examination with 
the other agency and permit the receiving agency a 
reasonable opportunity (which shall not be less than 
a period of 30 days after the date of receipt) to com-
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ment on the draft report before such report is made 
final; and 
(4) prior to issuing a final report of examina-
tion or taking supervisory action, an agency shall 
take into consideration concerns, if any, raised in 
the comments made by the other agency. 
(b) COORDINATION WITH STATE BANK SUPER-
VISORS.—The Agency shall pursue arrangements and 
agreements with State bank supervisors to coordinate ex-
aminations consistent with subsection (a). 
(c) RESOLUTION OF CONFLICT IN SUPERVISION.— 
(1) REQUEST OF DEPOSITORY INSTITUTION.— 
(A) IN GENERAL.—If the proposed mate-
rial supervisory determinations of the Agency 
and a Federal banking agency are conflicting, 
an insured depository institution, credit union, 
or other covered person may request the agen-
cies to coordinate and present a joint statement 
of coordinated supervisory action. 
(B) LIMITATION.—A request of an insured 
depository institution, credit union, or other 
covered person shall not be used to appeal a su-
pervisory rating or determination by the Agency 
or a Federal banking agency. 
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(2) JOINT STATEMENT.—The agencies receiving 
a request from an insured depository institution, 
credit union, or covered person under paragraph (1) 
shall provide a joint statement resolving the conflict 
under such subparagraph before the end of the 30- 
day period beginning on the date the agencies re-
ceive such request. 
(d) APPEALS TO GOVERNING PANEL.— 
(1) IN GENERAL.—If the agencies receiving a 
request from an insured depository institution, credit 
union, or covered person under subsection (c)(1) do 
not issue a joint statement under subsection (c)(2), 
or if either agency takes or attempts to take any su-
pervisory action relating to the request for the joint 
statement without the consent of the other agency, 
the insured depository institution, credit union, or 
other covered person may institute an appeal to a 
governing panel under this subsection. 
(2) TIMETABLE.—Any appeal under paragraph 
(1) with regard to a failure of agencies to issue a 
joint statement shall be filed before the end of the 
30-day period beginning at the end of the 30-day pe-
riod during which such joint statement was due 
under subsection (c)(2). 
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(e) COMPOSITION OF GOVERNING PANEL.—The gov-
erning panel for an appeal under this section shall be com-
posed of— 
(1) 2 individuals— 
(A) 1 of whom is a representative from the 
Agency; 
(B) 1 of whom is a representative of the 
Federal banking agency which received the re-
quest to which the appeal relates; and 
(C) neither of whom— 
(i) have participated in the material 
supervisory determinations under appeal; 
and 
(ii) report directly or indirectly to the 
individual who made the supervisory deter-
minations under appeal; and 
(2) 1 individual who is a representative from— 
(A) the Federal banking agency that heads 
the Financial Institution Examination Council; 
or 
(B) if the Financial Institutions Examina-
tion Council is headed by a Federal banking 
agency that is a party to the appeal, the Fed-
eral banking agency that is next scheduled to 
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head the Financial Institutions Examination 
Council. 
(f) CONDUCT OF APPEAL.— 
(1) CONTENT OF FILING APPEAL.—The insured 
depository institution, credit union, or other covered 
person which institutes an appeal under subsection 
(d)(1) shall include in the filing of such appeal all 
the facts and legal arguments pertaining to the mat-
ter appealed. 
(2) APPEARANCE.—The insured depository in-
stitution, credit union, or other covered person which 
institutes an appeal under this section may appear 
before the governing panel in person or by telephone, 
through counsel, employees, or representatives of, or 
for, such institution, credit union, or other covered 
person. 
(3) REQUESTS
FOR
ADDITIONAL
INFORMA-
TION.—Any governing panel convened under this 
section may request the insured depository institu-
tion, credit union, or other covered person, the 
Agency, or the Federal banking agency to produce 
additional information relevant to the appeal. 
(4) FINAL
WRITTEN
DETERMINATIONS.—Any 
governing panel convened under this section, by a 
majority vote of the members of the panel, shall pro-
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vide a final determination, in writing, within 30 days 
of the filing of an informationally complete appeal, 
or such longer period as the panel and the insured 
depository institution, credit union, or other covered 
person may jointly agree. 
(5) PUBLIC INFORMATION.—A redacted copy of 
any determination by a governing panel convened 
under this section shall be made public upon the 
issuance of such determination. 
(g) PROHIBITION AGAINST RETALIATION.—The Di-
rector and the Federal banking agencies shall prescribe 
regulations to provide safeguards from retaliation against 
any insured depository institution, credit union, or other 
covered person which institutes an appeal under this sec-
tion, as well as against any officer or and employee of any 
such institution, credit union, or other person. 
(h) MATERIAL SUPERVISORY DETERMINATION DE-
FINED.—For purposes of this section, the term ‘‘material 
supervisory determination’’— 
(1) includes any action relating to any super-
vision or examinations; and 
(2) does not include— 
(A) a determination by any Federal bank-
ing agency to appoint a conservator or receiver 
for an insured depository institution or a liqui-
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dating agent for an insured credit union, as the 
case may be, or a decision to take action pursu-
ant to section 38 of the Federal Deposit Insur-
ance Act or section 212 of the Federal Credit 
Union Act, as the case may be; or 
(B) any regulation or guidance, or order of 
general applicability. 
SEC. 4205. LIMITATIONS ON AUTHORITY OF AGENCY AND 
DIRECTOR. 
(a) EXCLUSION FOR MERCHANTS, RETAILERS, AND 
SELLERS OF NONFINANCIAL SERVICES.— 
(1) IN GENERAL.—Notwithstanding any provi-
sion of this title (other than paragraph (4)) and sub-
ject to paragraph (2), the Director and the Agency 
may not exercise any rulemaking, supervisory, en-
forcement or other authority, including authority to 
order assessments, under this title with respect to— 
(A) credit extended directly by a merchant, 
retailer, or seller of nonfinancial goods or serv-
ices to a consumer, in a case in which the good 
or service being provided is not itself a con-
sumer financial product or service, exclusively 
for the purpose of enabling that consumer to 
purchase such goods or services directly from 
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the merchant, retailer, or seller of nonfinancial 
services; or 
(B) collection of debt, directly by the mer-
chant, retailer, or seller of nonfinancial services, 
arising from such credit extended. 
In the application of this paragraph, the extension 
of credit and the collection of debt described in sub-
paragraphs (A) and (B), respectively, shall not be 
considered a consumer financial product or service. 
(2) EXCEPTION FOR EXISTING AUTHORITY.— 
The Director may exercise any rulemaking authority 
regarding an extension of credit described in para-
graph (1)(A) or the collection of debt arising from 
such extension, as may be authorized by the enumer-
ated consumer laws or any law or authority trans-
ferred under subtitle F or H. 
(3) RULE OF CONSTRUCTION.—No provision of 
this title shall be construed as modifying, limiting, 
or superseding the authority of the Federal Trade 
Commission or any agency other than the Agency 
with respect to credit extended, or the collection of 
debt arising from such extension, directly by a mer-
chant or retailer to a consumer exclusively for the 
purpose of enabling that consumer to purchase 
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goods or services directly from the merchant or re-
tailer. 
(4) EXCLUSION NOT APPLICABLE TO CERTAIN 
CREDIT
TRANSACTIONS.—Paragraph (1) shall not 
apply to— 
(A) any credit transaction, including the 
collection of the debt arising from such exten-
sion, in which the merchant, retailer, or seller 
of nonfinancial services assigns, sells, or other-
wise conveys such debt owed by the consumer 
to another person; 
(B) any credit transaction— 
(i) in which the credit provided sig-
nificantly exceeds the market value of the 
product or service provided; and 
(ii) with respect to which the Director 
finds that the sale of the product or service 
is done as a subterfuge so as to evade or 
circumvent the provisions of this title; or 
(C) any credit transaction involving a per-
son who operates a line of business that in-
volves the extension of retail credit or retail 
leases involving motor vehicles, if— 
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(i) the extension of retail credit or re-
tail leases is provided directly to con-
sumers; and 
(ii) the contracts governing such ex-
tension of retail credit or retail leases are 
not assigned to a third party finance or 
leasing source, except on a de minimis 
basis. 
(b) EXCLUSION FOR PERSONS REGULATED BY THE 
SECURITIES AND EXCHANGE COMMISSION.— 
(1) IN
GENERAL.—No provision of this title 
shall be construed as altering, amending, or affect-
ing the authority of the Securities and Exchange 
Commission or any securities commission (or any 
agency or office performing like functions) of any 
State to adopt rules, initiate enforcement pro-
ceedings, or take any other action with respect to a 
person regulated by the Securities and Exchange 
Commission or any securities commission (or any 
agency or office performing like functions) of any 
State. The Director and Agency shall have no rule-
making, supervisory, enforcement or other authority, 
including the authority to order assessments, under 
this title with respect to a person regulated by the 
Securities and Exchange Commission or any securi-
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ties commission (or any agency or office performing 
like functions) of any State. 
(2) CONSULTATION AND COORDINATION.—Not-
withstanding paragraph (1), the Securities and Ex-
change Commission shall consult and coordinate 
with the Director with respect to any rule (including 
any advance notice of proposed rulemaking) regard-
ing an investment 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. 
(c) EXCLUSION FOR PERSONS REGULATED BY THE 
COMMODITY FUTURES TRADING COMMISSION.— 
(1) IN
GENERAL.—No provision of this title 
shall be construed as altering, amending, or affect-
ing the authority of the Commodity Futures Trading 
Commission to adopt rules, initiate enforcement pro-
ceedings, or take any other action with respect to a 
person regulated by the Commodity Futures Trading 
Commission. The Director and the Agency shall 
have no authority to exercise any power to enforce 
this title with respect to a person regulated by the 
Commodity Futures Trading Commission. 
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(2) CONSULTATION AND COORDINATION.—Not-
withstanding paragraph (1), the Commodity Futures 
Trading Commission shall consult and coordinate 
with the Director with respect to any rule (including 
any advance notice of proposed rulemaking) regard-
ing a product or service that is the same type of 
product as, or that competes directly with, a con-
sumer financial product or service that is subject to 
the jurisdiction of the Agency under this title or 
under any other law. 
(d) PERSONS REGULATED BY A STATE SECURITIES 
COMMISSION.— 
(1) IN
GENERAL.—No provision of this title 
shall be construed as altering, amending, or affect-
ing the authority of any securities commission (or 
any agency or office performing like functions) of 
any State to adopt rules, initiate enforcement pro-
ceedings, or take any other action with respect to a 
person regulated by any securities commission (or 
any agency or office performing like functions) of 
any State. Except as permitted in paragraph (2) and 
subsection (m), the Director and the Agency shall 
have no authority to exercise any power to enforce 
this title with respect to a person regulated by any 
securities commission (or any agency or office per-
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forming like functions) of any State, but only to the 
extent that the person acts in such regulated capac-
ity. 
(2) DESCRIPTION OF ACTIVITIES.—Paragraph 
(1) shall not apply to any person to the extent such 
person is engaged in any financial activity described 
in any subparagraph of section 101(19) or is other-
wise subject to any enumerated consumer law or any 
law or authority transferred under subtitle F or H. 
(e) EXCLUSION
FOR PERSONS REGULATED
BY
A 
STATE INSURANCE REGULATOR.— 
(1) IN
GENERAL.—No provision of this title 
shall be construed as altering, amending, or affect-
ing the authority of any State insurance regulator to 
adopt rules, initiate enforcement proceedings, or 
take any other action with respect to a person regu-
lated by any State insurance regulator. Except as 
provided in paragraphs (2) and (3), the Agency shall 
have no authority to exercise any power to enforce 
this title with respect to a person regulated by any 
State insurance regulator. 
(2) DESCRIPTION OF ACTIVITIES.—Paragraph 
(1) shall not apply to any person described in such 
paragraph to the extent such person is engaged in 
any financial activity described in any subparagraph 
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of section 4002(19) or is otherwise subject to any of 
the enumerated consumer laws or the authorities 
transferred under subtitle F or H. 
(3) PRESERVATION
OF
CERTAIN
AUTHORI-
TIES.—No provision of this title shall be construed 
as limiting the authority of the Director and the 
Agency from exercising powers under this Act with 
respect to a person, other than a person regulated 
by a State insurance regulator, who provides a prod-
uct or service for or on behalf of a person regulated 
by a State insurance regulator in connection with a 
financial activity. 
(f) EXCLUSION FOR PERSONS REGULATED BY THE 
FEDERAL HOUSING FINANCE AGENCY.—No provision of 
this title shall be construed as altering, amending, or af-
fecting the authority of the Federal Housing Finance 
Agency to adopt rules, initiate enforcement proceedings, 
or take any other action with respect to a person regulated 
by the Federal Housing Finance Agency. The Director 
and Agency shall have no authority to exercise any power 
to enforce this title with respect to a person regulated by 
the Federal Housing Finance Agency. For purposes of 
this subsection, the term ‘‘person regulated by the Federal 
Housing Finance Agency’’ means any Federal home loan 
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bank, and any joint office of 1 or more Federal home loan 
banks. 
(g) EXCLUSION FOR PERSONS REGULATED BY THE 
FARM CREDIT ADMINISTRATION.—No provision of this 
title shall be constructed as altering, amending, or affect-
ing the authority of the Farm Credit Administration to 
adopt rules, institute enforcement proceedings, or take any 
other action with respect to a person regulated by the 
Farm Credit Administration. The Director and Agency 
shall have no authority to exercise any power to enforce 
this title, compel registration, or to order assessments with 
respect to a person regulated by the Farm Credit Adminis-
tration. For purposes of this subsection, the term ‘‘person 
regulated by the Farm Credit Administration’’ means any 
Farm Credit System Institution. 
(h) EMPLOYEE BENEFIT AND COMPENSATION PLANS 
AND CERTAIN OTHER ARRANGEMENTS UNDER THE IN-
TERNAL REVENUE CODE OF 1986.— 
(1) AUTHORITY
RETAINED
BY
OTHER
AGEN-
CIES.—No provision of this title shall be construed 
as altering, amending, or affecting the authority of 
the Secretary of the Treasury, the Secretary of 
Labor, or the Commissioner of Internal Revenue to 
adopt regulations, initiate enforcement proceedings, 
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or take any actions with respect to any specified 
plan or arrangement. 
(2) ACTIVITIES NOT CONSTITUTING FINANCIAL 
ACTIVITIES.—For the purposes of this title, a person 
shall not be treated as having engaged in a financial 
activity, as defined in section 4002(19), solely be-
cause such person is a specified plan or arrangement 
or is engaged in the activity of establishing or main-
taining, for the benefit of employees of such person 
(or for members of an employee organization), any 
specified plan or arrangement. 
(3) REGULATORY COORDINATION.—In the case 
of regulations promulgated under this title that ad-
dress any financial activity specifically pertaining to 
the administration and maintenance of a specified 
plan or arrangement, the Director shall coordinate 
with the Secretary of Labor and the Secretary of 
Treasury, as appropriate. 
(4) SPECIFIED PLAN OR ARRANGEMENT.—For 
purposes of this subsection, the term ‘‘specified plan 
or arrangement’’ means any plan, account, or ar-
rangement described in section 220, 223, 401(a), 
403(a), 403(b), 408, 408A, 529, or 530 of the Inter-
nal Revenue Code of 1986, or any employee benefit 
or compensation plan or arrangement, including a 
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plan that is subject to title I of the Employee Retire-
ment Income Security Act of 1974. 
(i) EXCLUSION FOR ACCOUNTANTS AND TAX PRE-
PARERS.— 
(1) IN GENERAL.—Except as permitted in para-
graph (2), the Director and the Agency may not ex-
ercise any rulemaking, supervisory, enforcement or 
other authority, including authority to order assess-
ments, over— 
(A) any person that is a certified public ac-
countant, permitted to practice as a certified 
public accounting firm, or certified or licensed 
for such purpose by a State, or any individual 
who is employed by or holds an ownership inter-
est with respect to a person described in this 
subparagraph when such person is performing 
or offering to perform customary and usual ac-
counting activities, including the provision of 
accounting, tax, advisory, other services that 
are subject to the regulatory authority of a 
state board of accountancy or a Federal author-
ity, or other services that are incidental to such 
customary and usual accounting activities, to 
the extent that such incidental services are not 
offered or provided by the person separate and 
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apart from such customary and usual account-
ing activities and are not offered or provided to 
consumers who are not receiving such cus-
tomary and usual accounting activities; or 
(B) any person other than a person de-
scribed in subparagraph (A) that performs in-
come tax preparation activities for consumers. 
(2) CERTAIN ACTIVITIES NOT EXCLUDED.— 
(A) IN GENERAL.—In no event shall para-
graph (1) apply to any activity which involves 
the sale of securities or extension of credit 
which is provided by a person described in para-
graph (1)(A). 
(B) DEFINITION.—For purposes of sub-
paragraph (A), the term ‘‘extension of credit’’ 
shall not include an ordinary account receivable. 
(3) DESCRIPTION OF ACTIVITIES.—Paragraph 
(1) shall not apply to— 
(A) any person described in paragraph 
(1)(A) to the extent such person is engaged in 
any activity which is not a customary and usual 
accounting activity described in paragraph 
(1)(A) or incidental thereto but which is a fi-
nancial activity described in any subparagraph 
of section 4002(19); 
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(B) any person described in paragraph 
(1)(B) to the extent such person is engaged in 
any activity which is a financial activity de-
scribed 
in 
any 
subparagraph 
of 
section 
4002(19); or 
(C) any person described in paragraph 
(1)(A) or (1)(B) that is otherwise subject to 
any of the enumerated consumer laws or the 
authorities transferred under subtitle F or H. 
(j) EXCLUSION FOR REAL ESTATE LICENSEES.— 
(1) IN GENERAL.—Except as permitted in para-
graph (2), the Director and the Agency may not ex-
ercise any rulemaking, supervisory, enforcement or 
other authority, including authority to order assess-
ments, over a person that is licensed or registered as 
a real estate broker, real estate agent, in accordance 
with State law, but only to the extent that such per-
son— 
(A) acts as a real estate agent or broker 
for a buyer, seller, lessor, or lessee of real prop-
erty; 
(B) brings together parties interested in 
the sale, purchase, lease, rental, or exchange of 
real property; 
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(C) negotiates, on behalf of any party, any 
portion of a contract relating to the sale, pur-
chase, lease, rental, or exchange of real prop-
erty (other than in connection with providing fi-
nancing with respect to any such transaction); 
(D) engages in any activity for which a 
person engaged in the activity is required to be 
registered or licensed as a real estate agent or 
real estate broker under any applicable law; or 
(E) offers to engage in any activity, or act 
in any capacity, described in subparagraph (A), 
(B), (C), or (D). 
(2) DESCRIPTION OF ACTIVITIES.—Paragraph 
(1) shall not apply to any person described in such 
paragraph to the extent such person is engaged in 
any financial activity described in any subparagraph 
of section 4002(19) or is otherwise subject to any of 
the enumerated consumer laws or the authorities 
transferred under subtitle F or H. 
(k) EXCLUSION FOR AUTO DEALERS.— 
(1) IN GENERAL.—The Director and the Agen-
cy may not exercise any rulemaking, supervisory, en-
forcement or any other authority, including author-
ity to order assessments, over a motor vehicle dealer 
that is primarily engaged in the sale and servicing 
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of motor vehicles, the leasing and servicing of motor 
vehicles, or both. 
(2) CERTAIN FUNCTIONS EXCEPTED.—The pro-
visions of paragraph (1) shall not apply to any per-
son to the extent that person— 
(A) provides consumers with any services 
related to residential mortgages; or 
(B) operates a line of business that in-
volves the extension of retail credit or retail 
leases involving motor vehicles, and in which— 
(i) the extension of retail credit or re-
tail leases is routinely provided directly to 
consumers; and 
(ii) the contract governing such exten-
sion of retail credit or retail leases is not 
routinely assigned to a third party finance 
or leasing source. 
(3) NO IMPACT ON PRIOR AUTHORITY.—Noth-
ing in this subsection shall be construed to modify, 
limit, or supersede the rulemaking or enforcement 
authority over motor vehicle dealers that could be 
exercised by any Federal department or agency on 
the day prior to the enactment of this title. 
(4) NO TRANSFER OF CERTAIN AUTHORITY.— 
Notwithstanding subtitle F or any other provision of 
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law under this title, the consumer financial protec-
tion functions of the Board of Governors and the 
Federal Trade Commission shall not be transferred 
to the Director or the Agency to the extent such 
functions are with respect to a person described 
under paragraph (1). 
(5) DEFINITIONS.—For purposes of this sub-
section: 
(A) MOTOR VEHICLE.—The term ‘‘motor 
vehicle’’ means any self-propelled vehicle de-
signed for transporting persons or property on 
a street, highway, or other road. 
(B) MOTOR VEHICLE DEALER.—The term 
‘‘motor vehicle dealer’’ means any person resi-
dent in the United States or any territory of 
the United States, and licensed by a State, a 
territory of the United States, or the District of 
Columbia to engage in the sale of motor vehi-
cles. 
(l) NO AUTHORITY TO IMPOSE USURY LIMIT.—No 
provision of this title shall be construed as conferring au-
thority on the Director or the Agency to establish a usury 
limit applicable to an extension of credit offered or made 
by a covered person to a consumer, unless explicitly au-
thorized by law. 
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(m) EXCLUSION FOR MANUFACTURED HOME RE-
TAILERS AND MODULAR HOME RETAILERS.— 
(1) IN GENERAL.—The Director and the Agen-
cy may not exercise any rulemaking, supervisory, en-
forcement or other authority, including authority to 
order assessments, over a person to the extent such 
person— 
(A) acts as an agent or broker for a buyer 
or seller of a manufactured home or a modular 
home; 
(B) facilitates the purchase by a consumer 
of a manufactured home or modular home, by 
negotiating the purchase price or terms of the 
sales contract (other than providing financing 
with respect to such transaction); or 
(C) offers to engage in any activity de-
scribed in subparagraph (A) or (B). 
(2) DESCRIPTION OF ACTIVITIES.—Paragraph 
(1) shall not apply to any person described in such 
paragraph to the extent such person is engaged in 
any financial activity described in any subparagraph 
of section 4002(19) or is otherwise subject to any of 
the enumerated consumer laws or the authorities 
transferred under subtitle F or H. 
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(3) DEFINITIONS.—For purposes of this sub-
section: 
(A) MANUFACTURED
HOME.—The term 
‘‘manufactured home’’ has the meaning given 
such term in section 603 of the National Manu-
factured Housing Construction and Safety 
Standards Act of 1974 (42 U.S.C. 5402). 
(B) MODULAR
HOME.—The term ‘‘mod-
ular home’’ means a house built in a factory in 
two or more modules that meet the State or 
local building codes where the house will be lo-
cated and where such modules are transported 
to the building site, installed on foundations, 
and completed. 
(n) EXCLUSION FOR PRACTICE OF LAW.— 
(1) IN GENERAL.—Except as provided under 
paragraph (2), nothing in this title shall apply with 
respect to an activity engaged in by an attorney, or 
engaged in under the direction of an attorney, as 
part of the practice of law under the laws of a State 
in which the attorney is licensed to practice law. 
(2) RULE OF CONSTRUCTION.— 
(A) IN GENERAL.—Paragraph (1) shall not 
be construed to limit the exercise by the Direc-
tor and the Agency of any rulemaking, super-
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visory, enforcement, or other authority, includ-
ing authority to order assessments, regarding 
any activity that is a financial activity described 
in any subparagraph of section 4002(19) and is 
not engaged in as— 
(i) part of the practice of law; or 
(ii) incidental to the practice of law, 
to the extent that such activity is provided 
exclusively within the scope of the attor-
ney-client relationship and is not otherwise 
provided by or under the direction of the 
attorney to any consumer who is not re-
ceiving legal advice or services from the at-
torney in connection with such activity. 
(B) CONSTRUCTION.—Paragraph (1) shall 
not be construed to limit the authority of the 
Director and the Agency with respect to any ac-
tivity to the extent that such activity is other-
wise subject to any of the enumerated consumer 
laws or the authorities transferred under sub-
title F or H. 
(3) EXCEPTION.—Notwithstanding paragraph 
(1), an individual who provides legal advice or serv-
ices related to preventing a foreclosure shall be sub-
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ject to this title unless such individual provides fore-
closure prevention services in connection with— 
(A) the preparation and filing of a bank-
ruptcy petition; or 
(B) court proceedings to avoid a fore-
closure. 
(o) EXCLUSION FOR PAWNBROKERS.— 
(1) IN GENERAL.—The Director and the Agen-
cy may not exercise any rulemaking, supervisory, en-
forcement, or other authority, including authority to 
order assessments, under this title with respect to 
any pawnbroker licensed by a State or political sub-
division thereof, a territory of the United States, or 
the District of Columbia, but only to the extent that 
such person acts in such capacity and provides ei-
ther— 
(A) non-recourse credit secured by a 
possessory security interest in tangible goods 
physically delivered by the consumer to the 
pawnbroker for which the consumer does not 
provide a written or electronic promise, order or 
authorization to pay, or in any other manner 
authorize a debit of a deposit account, prior to 
or contemporaneously with the disbursement of 
the original proceeds; or 
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(B) credit or any other financial activity 
issued directly by a pawnbroker to a consumer, 
in a case in which the good or service being 
provided is not itself a consumer financial prod-
uct or service, exclusively for the purpose of en-
abling that consumer to purchase goods or serv-
ices directly from the pawnbroker. 
(2) RULE OF CONSTRUCTION.— 
(A) FTC AUTHORITY
PRESERVED.—Ex-
cept as provided in subparagraph (B), no provi-
sion of this title shall be construed as modi-
fying, limiting, or superseding the authority of 
the Federal Trade Commission with respect to 
the activities described under paragraph (1). 
(B) EXERCISE OF RULEMAKING AUTHOR-
ITY.—The Director may exercise any rule-
making authority regarding the activities de-
scribed in paragraph (1) only as may be author-
ized by the enumerated consumer laws or any 
law or authority transferred under subtitle F or 
H. 
(p) EXCLUSION FOR CERTAIN CONSUMER REPORT-
ING AGENCIES.— 
(1) IN GENERAL.—Except as permitted in para-
graph (2), the Director and the Agency may not ex-
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ercise any rulemaking, supervisory, enforcement or 
other authority, including authority to order assess-
ments, over a person that is a consumer reporting 
agency, as such term is defined in section 603(f) of 
the Fair Credit Reporting Act (15 U.S.C. 1681a(f)), 
but only to the extent that such consumer reporting 
agency furnishes a consumer report to another per-
son that it has reason to believe intends to use the 
information for employment purposes, including for 
security investigations, government licensing and 
evaluating a consumer’s residential or tenant his-
tory. 
(2) DESCRIPTION OF ACTIVITIES.—Paragraph 
(1) shall not apply to any person described in such 
paragraph to the extent such person is engaged in 
any financial activity described in any subparagraph 
of section 4002(19) or is otherwise subject to any of 
the enumerated consumer laws or the authorities 
transferred under subtitle F or H. 
(q) LIMITED AUTHORITY OF THE AGENCY TO OB-
TAIN INFORMATION.—Notwithstanding subsections (a), 
(f), (g), (h), (i), and (k), the Director may request or re-
quire information from any person subject to or described 
in any such subsection in order to carry out the respon-
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sibilities and functions of the Agency and in accordance 
with section 4206, 4501, or 4502. 
(r) EXCLUSION FOR ACTIVITIES RELATING TO CHAR-
ITABLE CONTRIBUTIONS.— 
(1) The Director and the Agency may not exer-
cise any rulemaking, supervisory, enforcement, or 
other authority, including authority to order assess-
ments or penalties, over any activities related to the 
solicitation or making of voluntary contributions to 
or through a tax-exempt organization as recognized 
by the Internal Revenue Service, by any agent, vol-
unteer or representative of such organizations to the 
extent the organization, agent, volunteer or rep-
resentative thereof is soliciting or providing advice, 
information, education or instruction to donor(s) or 
potential donor(s) relating to a contribution to or 
through the organization. 
(2) This exclusion shall not apply to other ac-
tivities not described in the paragraph above and are 
financial activities as described in any subparagraph 
of section 4002(19), or otherwise subject to any of 
the enumerated consumer laws, or the authorities 
transferred under subtitle F or H. 
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SEC. 4206. COLLECTION OF INFORMATION; CONFIDEN-
TIALITY REGULATIONS. 
(a) COLLECTION OF INFORMATION.— 
(1) IN GENERAL.—In conducting research on 
the provision of consumer financial products or serv-
ices, the Director shall have the power to gather in-
formation from time to time regarding the organiza-
tion, business conduct, and practices of covered per-
sons or service providers. 
(2) SPECIFIC AUTHORITY.—In order to gather 
such information, the Director 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 Director may pre-
scribe, by regulation or order, annual or special 
reports, or answers in writing to specific ques-
tions, furnishing information the Director 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 REGULATIONS.—The Director 
shall prescribe regulations regarding the confidential 
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treatment of information obtained from persons in connec-
tion with the exercise of any authority of the Agency or 
Director under this title and the enumerated consumer 
laws and the authorities transferred under subtitles F and 
H. 
(c) PRIVACY CONSIDERATIONS.—In collecting infor-
mation from any person, publicly releasing information 
held by the Agency, or requiring covered persons to pub-
licly report information, the Director and the Agency shall 
take steps to ensure that proprietary, personal or con-
fidential consumer information that are protected from 
public disclosure under section 552(b) or 552a of title 5, 
United States Code, or any other provision of law are not 
made public under this title. 
SEC. 4207. MONITORING; ASSESSMENTS OF SIGNIFICANT 
REGULATIONS; REPORTS. 
(a) MONITORING.— 
(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 or service providers, analysis of reports ob-
tained from covered persons or service providers, as-
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sessment of consumer complaints, surveys and inter-
views of covered persons, service providers, and con-
sumers, and review of available databases. 
(3) CONSIDERATIONS.—In allocating the re-
sources of the Agency to perform the monitoring re-
quired by this section, the Director may consider, 
among other factors— 
(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; 
(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 
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(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 the 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 REGULATIONS.— 
(1) IN GENERAL.—The Agency shall conduct an 
assessment of each significant regulation prescribed 
or order issued by the Director 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 ef-
fectiveness of the regulation in meeting the purposes 
and objectives of this title and the specific goals 
stated by the Director. 
(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 an assessment under this subsection not 
later than 3 years after the effective date of the reg-
ulation or order, unless the Director determines that 
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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 of such assessment more 
than 5 years after the effective date of the regula-
tion or order. 
(4) PUBLIC COMMENT REQUIRED.—Before pub-
lishing a report of its assessment, the Agency shall 
invite, with sufficient time allotted, public comment 
on, and may hold public hearings on, recommenda-
tions 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. 
4208. 
AUTHORITY 
TO 
RESTRICT 
MANDATORY 
PREDISPUTE ARBITRATION. 
(a) IN GENERAL.—The Director, by regulation, may 
prohibit or impose conditions or limitations on the use of 
any agreement between a covered person and a consumer 
for a consumer financial product or service providing for 
arbitration of any future dispute between the parties if 
the Director finds that such a prohibition or imposition 
of conditions or limitations are in the public interest and 
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for the protection of consumers. This authority shall not 
prohibit or restrict a consumer from entering into a vol-
untary arbitration agreement with a covered person after 
a dispute has arisen. 
(b) EFFECTIVE DATE.—Notwithstanding any other 
provision of law, any regulation prescribed by the Director 
under subsection (a) shall apply, consistent with the terms 
of the regulation, to any agreement between a consumer 
and a covered person entered into after the end of the 
180-day period beginning on the effective date of the regu-
lation, as established by the Director. 
SEC. 4209. REGISTRATION AND SUPERVISION OF NON-
DEPOSITORY COVERED PERSONS. 
(a) RISK-BASED PROGRAMS.— 
(1) IN
GENERAL.—The Agency shall develop 
risk-based programs to supervise covered persons 
that are not credit unions, depository institutions, or 
persons excluded under section 4205 by prescribing 
registration requirements, reporting requirements, 
and examination standards and procedures. 
(2) BASIS FOR PROGRAMS.—The risk-based su-
pervisory programs established pursuant to para-
graph (1) shall be based on— 
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(A) relevant registration and reporting in-
formation about such covered persons, as deter-
mined by the Agency; and 
(B) the Agency’s assessment of risks posed 
to consumers in the relevant geographic mar-
kets and markets for consumer financial prod-
ucts and services. 
(b) REGISTRATION.— 
(1) IN GENERAL.—The Director shall prescribe 
regulations regarding registration requirements for 
covered persons that are not credit unions or deposi-
tory institutions. 
(2) CONSULTATION WITH STATE AGENCIES.— 
In developing and implementing registration require-
ments under this subsection, the Agency shall con-
sult with State agencies regarding requirements or 
systems for registration (including coordinated or 
combined systems), where appropriate. 
(3) EXCEPTION FOR RELATED PERSONS.—The 
Agency shall not impose requirements regarding the 
registration of a related person. 
(4) REGISTRATION INFORMATION.—Subject to 
regulations prescribed by the Director, the Agency 
shall publicly disclose the registration information 
about a covered person which is not a bank holding 
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company, credit union, or depository institution for 
the purposes of facilitating the ability of consumers 
to identify the covered person as registered with the 
Agency. 
(c) REPORTING REQUIREMENTS.— 
(1) IN GENERAL.—The Agency may require re-
ports from covered persons that are not credit 
unions or depository institutions, or service providers 
thereto, for the purposes of facilitating supervision 
of such covered persons or service providers. 
(2) CONSISTENCY
OF
REPORTING
REQUIRE-
MENTS AND RISK-BASED STANDARDS.—The Agency 
shall impose reporting requirements under this sub-
section that are consistent with the risk-based stand-
ards developed and implemented under this section 
and the registration information pertaining to the 
relevant types or classes of covered persons. 
(3) CONTENTS
OF
REPORTS.—Reporting re-
quirements imposed under this paragraph may in-
clude information regarding— 
(A) the nature of the covered person’s 
business; 
(B) the covered person’s name, legal form, 
ownership and management structure, and re-
lated persons; 
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(C) the covered person’s locations of oper-
ation; 
(D) the covered person’s types and number 
of consumer financial products and services 
provided by the covered person; 
(E) compliance with any requirement im-
posed or enforced by the Agency, including any 
requirement relating to registration, licensing, 
fees, or assessments; and 
(F) the financial condition of such covered 
person, including a related person, for the pur-
pose of assessing the ability of such person to 
perform its obligation to consumers. 
(4) CONSULTATION WITH THE FEDERAL TRADE 
COMMISSION.—In developing and implementing re-
port requirements under this subsection, the Agency 
shall consult with the Federal Trade Commission, 
where appropriate. 
(5) EXCEPTION
FOR
RELATED
PERSONS.— 
Other than reports permitted under paragraph 
(3)(F) or in connection with a supervisory action or 
examination or pursuant to the powers granted in 
subtitle E, the Agency shall not impose requirements 
regarding reports of any related person. 
(d) EXAMINATIONS.— 
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(1) EXAMINATIONS
REQUIRED.—The Agency 
shall conduct examinations of covered persons that 
are not credit unions or depository institutions as 
part of the programs implemented under paragraphs 
(2) and (3) of section 4202(c). 
(2) EXAMINATION
STANDARDS
AND
PROCE-
DURES.—The Director shall establish risk-based 
standards and procedures for conducting examina-
tions of covered persons required to be examined 
under paragraph (1), including the frequency and 
scope of such examinations, except that the Agency 
shall conduct examinations of such covered persons 
that are determined to pose the highest risk to con-
sumers based on factors determined by the Director, 
such as the operations, sales practices, or consumer 
financial products or services provided by such cov-
ered persons. 
(e) AUTHORITY TO COLLECT INFORMATION REGARD-
ING FEES OR ASSESSMENTS.—To the extent permitted by 
Federal law, the Agency may obtain from the Secretary 
of the Treasury information relating to a covered person 
which is not a bank holding company, credit union, or de-
pository institution, including information regarding com-
pliance with a reporting or registration requirement under 
the subchapter II of chapter 53 of title 31, United States 
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Code, for the purposes of, and only to the extent necessary 
in, investigating, determining, or enforcing compliance 
with a requirement relating to any fee or assessment im-
posed by the Agency under this title. 
SEC. 4210. EFFECTIVE DATE. 
This subtitle shall take effect on the designated 
transfer date. 
Subtitle C—Specific Authorities 
SEC. 4301. 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, or the offering of a consumer financial 
product or service. 
(b) REGULATIONS.— 
(1) IN GENERAL.—The Director 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 or the offering of a consumer 
financial 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) UNFAIR, DECEPTIVE, OR ABUSIVE ACTS
OR 
PRACTICES DEFINED.— 
(1) UNFAIR ACTS OR PRACTICES.—Any deter-
mination by the Director and the Agency that an act 
or practice is unfair shall be consistent with the 
standard set forth under section 5 of the Federal 
Trade Commission Act and with the policy state-
ment adopted by the Federal Trade Commission 
pursuant to section 5 of the Federal Trade Commis-
sion Act and dated December 17, 1980. 
(2) DECEPTIVE ACTS OR PRACTICES.—Any de-
termination by the Director and the Agency that an 
act or practice is deceptive shall be consistent with 
the policy statement adopted by the Federal Trade 
Commission pursuant to section 5 of the Federal 
Trade Commission Act and dated October 14, 1983. 
(3) ABUSIVE ACTS OR PRACTICES.—The Direc-
tor and the Agency may determine that an act or 
practice is abusive only if the Director finds that— 
(A) the act or practice is reasonably likely 
to result in a consumer’s inability to under-
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stand the terms and conditions of a financial 
product or service or to protect their own inter-
ests in selecting or using a financial product or 
service; and 
(B) the widespread use of the act or prac-
tice is reasonably likely to contribute to insta-
bility and greater risk in the financial system. 
(4) CONSIDER AS UNFAIR CERTAIN PRACTICES 
WITH
REGARD
TO
THE
PROVISION
OF
CREDIT 
SCORES.—Subject to regulations prescribed by the 
Director, it shall be considered unfair for any con-
sumer reporting agency that compiles and maintains 
files on consumers on a nationwide basis (as defined 
in section 603(p) of the Fair Credit Reporting Act; 
15 U.S.C. 1681a(p)) to make available for purchase 
by creditors any credit score for a consumer that is 
not also available for purchase by that consumer at 
the same price as other credit scores sold to con-
sumers by such agency. 
(d) CONSULTATION.—In prescribing any regulation 
under this section, the Director shall consult with the Fed-
eral banking agencies, State bank supervisors, the Federal 
Trade Commission, or other Federal agencies, as appro-
priate, regarding the consistency of a proposed regulation 
with prudential, consumer protection, civil rights, market, 
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or systemic objectives administered by such agencies or 
supervisors. 
SEC. 4302. DISCLOSURES. 
(a) IN GENERAL.—The Director may prescribe regu-
lations to ensure the timely, appropriate and effective dis-
closure to consumers of the costs, benefits, and risks asso-
ciated with any consumer financial product or service. 
(b) COORDINATION WITH OTHER LAWS.—In pre-
scribing regulations under subsection (a), the Director 
shall take into account disclosure requirements under 
other laws in order to enhance consumer compliance and 
reduce regulatory burden. 
(c) COMPLIANCE.— 
(1) MODEL
DISCLOSURES.—The Agency may 
provide model disclosures to facilitate compliance 
with the requirements of regulations prescribed 
under this section. 
(2) PER
SE
COMPLIANCE.—Compliance by a 
covered person with the model disclosures issued by 
the Agency under this subsection shall per se con-
stitute compliance with the disclosure requirements 
of this section. 
(3) ADDITIONAL GUIDANCE.—The Agency may 
issue exemptions, no action letters, and other guid-
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ance to promote compliance with disclosures require-
ments of regulations prescribed under this section. 
(d) COMBINED MORTGAGE LOAN DISCLOSURE.— 
Within 1 year after the designated transfer date, the Di-
rector 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 Director determines that any proposal issued by 
the Board of Governors and the Department of Housing 
and Urban Development carries out the same purpose. 
SEC. 4303. SALES PRACTICES. 
The Director 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 
the term of the products or services, are fully and accu-
rately represented to consumers. 
SEC. 4304. 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-
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sumer financial product or service, or the offering of a 
consumer 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. 
4305. 
ADOPTING 
OPERATIONAL 
STANDARDS 
TO 
DETER UNFAIR, DECEPTIVE, OR ABUSIVE 
PRACTICES. 
(a) AUTHORITY TO PRESCRIBE STANDARDS.—The 
States are encouraged to prescribe standards applicable 
to covered persons who are not insured depository institu-
tions or credit unions, or service providers, to deter and 
detect unfair, deceptive, abusive, fraudulent, or illegal 
transactions in the provision of consumer financial prod-
ucts or services, including standards for— 
(1) background checks for principals, officers, 
directors, or key personnel; 
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(2) registration, licensing, or certification; 
(3) bond or other appropriate financial require-
ments to provide reasonable assurance of ability to 
perform its obligations to consumers; 
(4) creating and maintaining records of trans-
actions or accounts; or 
(5) procedures and operations relating to the 
provision of, or maintenance of accounts for, con-
sumer financial products or services. 
(b) AGENCY AUTHORITY
TO PRESCRIBE STAND-
ARDS.— 
(1) IN GENERAL.—The Director may prescribe 
regulations establishing minimum standards under 
this section for any class of covered persons other 
than covered persons which are subject to the juris-
diction of a Federal banking agency or a State bank 
supervisor, or for any service provider. 
(2) REGISTRATION
AND
LICENSING
STAND-
ARDS.—In addition to prescribing standards for the 
purposes described in subsection (a), the Director 
may prescribe registration or licensing standards ap-
plicable to covered persons for the purposes of im-
posing fees or assessments in accordance with this 
title. 
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(3) ENFORCEMENT OF STANDARDS.—The Di-
rector may enforce under subtitle E compliance with 
standards adopted by the Director or a State pursu-
ant to this section for covered persons or service 
providers operating in that State. 
(c) CONSULTATION.—In prescribing minimum stand-
ards under this section, the Director shall consult with the 
Federal banking agencies, State bank supervisors, the 
Federal Trade Commission, or other Federal agencies, as 
appropriate, regarding the consistency of a proposed regu-
lation with prudential, consumer protection, civil rights, 
market, or systemic objectives administered by such agen-
cies or supervisors. 
SEC. 4306. DUTIES. 
(a) IN GENERAL.— 
(1) REGULATIONS
ENSURING
FAIR
DEALING 
WITH
CONSUMERS.—The Director shall prescribe 
regulations imposing duties on a covered person, or 
an employee of a covered person, or an agent or 
independent contractor for a covered person, who 
deals or communicates directly with consumers in 
the provision of a consumer financial product or 
service, as the Director deems appropriate or nec-
essary to ensure fair dealing with consumers. 
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(2) CONSIDERATIONS
FOR
DUTIES.—In pre-
scribing such regulations, the Director shall consider 
whether— 
(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 or use of 
any advice from the covered person, employee, 
agent, or independent contractor would be rea-
sonable 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 Director con-
siders appropriate. 
(3) DUTIES
RELATING
TO
COMPENSATION 
PRACTICES.— 
(A) IN GENERAL.—The Director may pre-
scribe regulations establishing duties regarding 
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compensation practices applicable to a covered 
person, employee, agent, or independent con-
tractor who deals or communicates directly with 
a consumer in the provision of a consumer fi-
nancial product or service for the purpose of 
promoting fair dealing with consumers. 
(B) NO COMPENSATION CAPS.—The Direc-
tor may not prescribe a limit on the total dollar 
amount of compensation paid to any person. 
(C) 
DISPARITY
TREATMENT
PROHIB-
ITED.—The Director may not prescribe regula-
tions that directly or indirectly disparately 
treat, or are interpreted to disparately treat, or 
disparately impact any entity that employs cov-
ered persons. 
(4) REQUIREMENT TO INCLUDE DISCLAIMER ON 
PUBLIC
STATEMENTS.—The Director shall ensure 
that the Agency’s website, and any statement made 
by the Director or the Agency to the public, includes 
a disclaimer stating that the Agency does not en-
dorse any particular financial product or service and 
consumers are expected to exercise due diligence in 
deciding what financial products and services are ap-
propriate for them. 
(b) ADMINISTRATIVE PROCEEDINGS.— 
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(1) IN GENERAL.—Any regulation prescribed by 
the Director 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 
(other than by the Agency, or by a State regulator, 
as may be necessary to enforce an administrative 
order 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 oth-
erwise 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 Director under this 
section. 
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(c) EXCLUSIONS.—This section shall not be con-
strued as authorizing the Director 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. 4307. CONSUMER RIGHTS TO ACCESS INFORMATION. 
(a) IN GENERAL.—Subject to regulations prescribed 
by the Director, 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 (including section 6103 of 
the Internal Revenue Code of 1986); 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 Di-
rector, by regulation, shall prescribe standards applicable 
to covered persons to promote the development and use 
of standardized formats for information, including 
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through the use of machine readable files, to be made 
available to consumers under this section. 
(e) CONSULTATION.—The Director shall, when pre-
scribing any regulation under this section, consult with the 
Federal banking agencies, State bank supervisors, the 
Federal Trade Commission, and the Commissioner of In-
ternal Revenue 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. 4308. PROHIBITED ACTS. 
It shall be unlawful for any person— 
(1) to advertise, market, offer, sell, enforce, or 
attempt 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 Director or to engage in any un-
fair, deceptive, or abusive act or practice, except that 
no person shall be held to have violated this sub-
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section solely by virtue of providing or selling time 
or space to a person placing an advertisement; 
(2) to fail or refuse to pay any fee or assess-
ment imposed by the Agency under this title, to fail 
or refuse to permit access to or copying of records, 
to fail or refuse to establish or maintain records, or 
to fail or refuse to make reports or provide informa-
tion to the Agency, as required by this title, an enu-
merated consumer law, or pursuant to the authori-
ties transferred by subtitles F and H, or any regula-
tion prescribed or order issued by the Director this 
title or pursuant to any such authority; or 
(3) to knowingly or recklessly provide substan-
tial assistance to another person in violation of the 
provisions of section 4301, or any regulation pre-
scribed or order issued under such section, and, not-
withstanding any other provision of this title, any 
such person shall be deemed to be in violation of 
that section to the same extent as the person to 
whom such assistance is provided. 
Nothing in this section shall be construed as limiting or 
superseding the protection provided to any provider or 
user qualifying for protection under section 230(c)(1) of 
the Communications Act of 1934 (47 U.S.C. 230(c)(1)). 
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SEC. 4309. TREATMENT OF REMITTANCE TRANSFERS. 
(a) DISCLOSURES
REQUIRED
FOR
REMITTANCE 
TRANSFERS.— 
(1) IN
GENERAL.—Each remittance transfer 
provider shall make disclosures to consumers, as 
specified by this section and by regulation prescribed 
by the Director. 
(2) SPECIFIC
DISCLOSURES.—In addition to 
any other disclosures applicable under this title, a 
remittance transfer provider shall— 
(A) disclose clearly and conspicuously, in 
writing and in a form that the consumer may 
keep, to each consumer who requests informa-
tion regarding the fees or exchange rate for a 
remittance transfer, prior to the consumer mak-
ing any payment in connection with the trans-
fer— 
(i) the total amount in United States 
dollars that will be required to be paid by 
the consumer in connection with the remit-
tance transfer; 
(ii) the amount of currency that the 
designated recipient of the remittance 
transfer will receive, using the values of 
the currency into which the funds will be 
exchanged; 
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(iii) the fee charged by the remittance 
transfer provider for the remittance trans-
fer; 
(iv) any exchange rate to be used by 
the remittance transfer provider for the re-
mittance transfer, unless the exchange rate 
is not fixed on send; 
(v) the amount of time for which the 
information specified in this subparagraph 
(A) will be in effect; 
(vi) the expected time interval within 
which the funds being transferred will be 
made available to the recipient; and 
(vii) the location where the funds 
being transferred will be made available to 
the recipient if the funds are to be made 
available only at one location, or if the re-
mittance transfer provider permits the re-
cipient to choose from multiple locations 
where the funds being transferred will be 
made available to the recipient, the remit-
tance transfer provider shall make avail-
able to the consumer or the recipient a re-
source that lists such locations; 
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(B) at the time at which the consumer 
makes payment in connection with the remit-
tance transfer, a receipt in writing disclosing 
clearly and conspicuously— 
(i) the information described in sub-
paragraph (A); 
(ii) the expected time interval within 
which the funds being transferred will be 
made available to the recipient, which shall 
be not more than ten days after the date 
the consumer makes payment in connec-
tion with the remittance transfer unless 
otherwise prohibited by applicable State or 
Federal law or the law of another country, 
or as may be specified by the consumer so 
long as the consumer has the choice to 
order that the funds be made available to 
the recipient not more than ten days after 
the consumer makes payment in connec-
tion with the remittance transfer; 
(iii) the location where the funds 
being transferred will be made available to 
the recipient if the funds are to be made 
available only at one location, or if the re-
mittance transfer provider permits the re-
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cipient to choose from multiple locations 
where the funds being transferred will be 
made available to the recipient, the remit-
tance transfer provider shall make avail-
able to the consumer or the recipient a re-
source that lists such locations; 
(iv) the name and telephone number 
or address of the designated recipient, if 
provided to the remittance transfer pro-
vider by the consumer; 
(v) information about the rights of the 
consumer under this section to cancel the 
remittance transfer, to resolve errors and 
to receive refunds; 
(vi) appropriate contact information 
for the remittance transfer provider; 
(vii) a transaction reference number 
unique to that remittance transfer; and 
(viii) information as to when the ex-
change rate will be calculated (for example, 
when the funds are received by the recipi-
ent), if the customer has been notified that 
the exchange rate is not fixed on send; 
(C) at the time at which the consumer ini-
tiates the remittance transfer, offer to provide 
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in writing, prior to making any payment in con-
nection with the transfer, the information listed 
in subparagraph (A); and 
(D) in the case of an exchange rate not 
fixed on send, the remittance provider shall also 
disclose, at the time at which the consumer ini-
tiates the remittance transfer, the range, using 
the high and low rates, for the prior 30 day pe-
riod, that the consumer would have received if 
a representative amount had been exchanged by 
the remittance transfer provider, as well as a 
clear and conspicuous notice that the actual ex-
change rate may vary. 
If the actual rate used for the transfer is known to 
the remittance provider, either because such rate 
was set by the remittance provider itself or because 
the remittance provider receives confirmation of the 
actual exchange rate used, the remittance provider 
shall make available to consumers written or elec-
tronic confirmation of the actual exchange rate used 
and the amount of currency that the recipient or the 
remittance transfer received, using the values of the 
currency into which the funds were exchanged. The 
Director shall within 2 years after the date of the 
enactment of the Consumer Financial Protection 
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Agency Act of 2009 prescribe consumer disclosures 
for transfers with rates not fixed on send that are 
functionally equivalent to those applicable to remit-
tances where the exchange rate is specified by the 
remittance transfer provider at the time the con-
sumer initiates the remittance transfer. To the 
greatest extent possible, the Director shall ensure 
that functional equivalence will enable remittance 
transfer providers to comply with all requirements in 
this title and provide consumers with information 
sufficient to compare services providers, to time 
their use of the product, to discover errors in trans-
mission and to seek remedies. 
(3) 
EXEMPTION.—Notwithstanding 
require-
ments under paragraph (2)(A)(ii), (2)(A)(iv), or 
(2)(B)(i), no such disclosure is required— 
(A) because of the requirements of another 
law, including the law of another country; 
(B) because the transfer is being routed 
through the Directo a Me´xico offered by the 
Federal reserve banks; or 
(C) because of any other circumstance 
deemed permissible by regulation of the Direc-
tor; If the actual rate used for the transfer is 
known to the remittance provider, the remit-
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tance provider shall make available to con-
sumers written or electronic confirmation of the 
actual exchange rate used and the amount of 
currency that the recipient of the remittance 
transfer received, using the values of the cur-
rency into which the funds were exchanged. 
(4) PROVISION
OF
TOLL-FREE
NUMBER
AND 
WEB ACCESS.— 
(A) In addition to providing the disclosures 
required by this section to a consumer at a re-
mittance transfer provider location, a remit-
tance transfer provider shall provide a toll-free 
telephone number or local number, and an 
Internet website that a consumer can access for 
which access no remittance transfer provider 
may assess a charge, to obtain the information 
required by paragraph (2)(A) for remittance 
transfers offered by that remittance transfer 
provider or information about the status of a 
remittance transfer for which a consumer has 
made payment. 
(B) A remittance transfer provider that on 
an aggregate basis originates 30,000 or fewer 
transfers on a calendar year basis (or such 
other amount as may be prescribed by the Di-
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rector) is not required to offer the web access 
prescribed in subparagraph (A), but is required 
to provide a toll-free telephone number or local 
number as prescribed in subparagraph (A). 
(5) ALTERNATIVE METHODS OF DISCLOSURE.— 
Subject to subsection (e)(2), a remittance transfer 
provider may— 
(A) if the transaction is conducted entirely 
by telephone (which shall include, but not be 
limited to, a mobile telephone) satisfy the re-
quirements of paragraph (2)(A) orally or, at the 
option of the consumer, electronically through a 
message sent to the consumer through any elec-
tronic means (including, but not limited to, an 
electronic mail address or a mobile telephone) 
as designated by the consumer; 
(B) satisfy the requirements of paragraph 
(2)(A) electronically if the transfer is initiated 
by the consumer electronically through the re-
mittance transfer provider’s website or through 
any other electronic means; and 
(C) satisfy the requirements of paragraph 
(2)(B) by mailing (or transmitting electronically 
if the transfer is initiated electronically by the 
consumer through the remittance transfer pro-
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vider’s website or the consumer otherwise con-
sents in accordance with the provisions of sec-
tion 101 of the Electronic Signatures in Global 
and National Commerce Act) the information 
required under such paragraph to the consumer 
not later than one business day after the date 
on which the transaction is conducted, if the 
transaction is conducted entirely by telephone 
(or electronically) and the consumer requests a 
written receipt. 
(b) WRITTEN FOREIGN LANGUAGE DISCLOSURES.— 
(1) IN
GENERAL.—The disclosures required 
under subsections (a)(2)(A) and (a)(2)(B)(i) shall be 
made in English and— 
(A) at each remittance transfer provider 
location, shall be made in the same languages 
principally used by the remittance transfer pro-
vider, or any of its agents, to advertise, solicit, 
or market its remittance transfers business, ei-
ther orally or in writing, at that location, if 
other than English, provided that such lan-
guages are those for which the Director has 
issued model disclosures as provided in sub-
section (g); or 
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(B) on a remittance transfer provider’s 
website, shall at a minimum be made in any 
other language for which the Director has 
issued model disclosures as provided in sub-
section (g) if the remittance transfer provider, 
or any of its agents, advertises, solicits, or mar-
kets its remittance transfers business in such 
language. 
(2) DISPUTES CONCERNING TERMS.—If a dis-
closure is required by this section to be in English 
and another language, the English version of the 
disclosure shall govern any dispute concerning the 
terms of the receipt. However, any discrepancies be-
tween the English version and any other version due 
to the translation of the receipt from English to an-
other language including errors or ambiguities shall 
be construed against the remittance transfer pro-
vider or its agent and the remittance transfer pro-
vider or its agent shall be liable for any damages 
caused by these discrepancies. 
(c) REMITTANCE TRANSFER CANCELLATIONS, RE-
FUNDS, AND ERRORS.— 
(1) CANCELLATIONS.— 
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(A) After receiving the receipt required 
under subsection (a)(2)(B), a consumer may 
cancel the currency transaction— 
(i) before leaving the premises of the 
remittance transfer provider where the 
consumer received the receipt; and 
(ii) not later than 30 minutes after 
the time the consumer initiated the remit-
tance transfer with the remittance transfer 
provider. 
(B) If a consumer cancels the transaction, 
the remittance transfer provider shall imme-
diately refund to the consumer the fees paid 
and the currency to be transferred, and issue a 
receipt indicating that the transaction has been 
cancelled. 
(C) A consumer may not cancel a remit-
tance transfer after the remittance transfer pro-
vider has sent the funds to the recipient. 
(D) A remittance transfer provider shall 
not be required to provide a refund if providing 
a refund would violate State or Federal law. 
(2) REFUNDS.— 
(A) If a remittance transfer provider re-
ceives written notice from the consumer within 
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10 days of the promised date of delivery of a 
remittance transfer that no amount of the 
funds to be remitted was made available to the 
designated recipient in the foreign country, the 
remittance transfer provider shall— 
(i) refund to the consumer the total 
amount in U.S. dollars that was paid by 
the consumer in connection with such re-
mittance transfer; 
(ii) promptly transmit the remittance 
transfer in accordance with the terms in 
the written receipt provided to the con-
sumer pursuant to subsection (a)(2)(B); 
(iii) provide such other remedy, as de-
termined appropriate by rule of the Direc-
tor for the protection of consumers; or 
(iv) demonstrate to the consumer that 
the proceeds of the remittance transfer 
were made available to the recipient of the 
remittance provider. 
(B) A remittance transfer provider shall 
not be required to provide a refund if providing 
a refund would violate State or Federal law. 
(3) ERROR RESOLUTION.— 
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(A) IN GENERAL.—If a remittance transfer 
provider receives written notice from the con-
sumer within 60 days of the promised date of 
delivery that an error occurred with respect to 
a remittance transfer, including that the full 
amount of the funds to be remitted was not 
made available to the designated recipient in 
the foreign country, the remittance transfer 
provider shall resolve the error pursuant to this 
paragraph. 
(B) REMEDIES.—Not later than 120 days 
after the date of receipt of a notice from the 
consumer pursuant to subparagraph (A), the 
remittance transfer provider shall— 
(i) as applicable to the error and as 
designated by the consumer— 
(I) refund to the consumer the 
total amount in United States dollars 
that was paid by the consumer in con-
nection with the remittance transfer 
that was not properly transmitted; 
(II) make available to the des-
ignated recipient, without additional 
cost to the designated recipient or to 
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the consumer, the amount appropriate 
to resolve the error; 
(III) provide such other remedy, 
as determined appropriate by regula-
tion of the Director for the protection 
of consumers; or 
(ii) demonstrate to the consumer that 
there was no error. 
(4) REGULATIONS.—The Director, in order to 
protect consumers, shall establish, by regulation, 
clear and appropriate standards for remittance 
transfer providers with respect to error resolution, 
cancellation and refunds. 
(d) ENFORCEMENT AUTHORITY.—The Director shall 
have the sole authority to enforce the provisions of this 
section, and any regulations established pursuant to this 
section. 
(e) APPLICABILITY
OF
OTHER
PROVISIONS
OF 
LAW.— 
(1) APPLICABILITY OF TITLE 18 AND TITLE 31 
PROVISIONS.—A remittance transfer provider that is 
a money transmitting business as defined in section 
5330 of title 31, United States Code, may provide 
remittance transfers only if such provider is in com-
pliance with the requirements of section 5330 of title 
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31, United States Code, and section 1960 of title 
18, United States Code, as applicable. 
(2) RULE OF CONSTRUCTION.—Nothing in this 
section shall be construed— 
(A) to affect the application to any trans-
action, to any remittance provider, or to any 
other person of any of the provisions of sub-
chapter II of chapter 53 of title 31, United 
States Code, section 21 of the Federal Deposit 
Insurance Act, or chapter 2 of title I of Public 
Law 91–508, or any regulations promulgated 
thereunder; or 
(B) to cause any fund transfer that would 
not otherwise be treated as such under para-
graph (2) to be treated as an electronic fund 
transfer, or as otherwise subject to this title, for 
the purposes of any of the provisions referred to 
in subparagraph (A) or any regulation pre-
scribed under such subparagraph. 
(f) DEFINITIONS.—For purposes of this section, the 
following definitions shall apply: 
(1) DEPOSITORY INSTITUTION.—the term ‘‘de-
pository institution’’ has the same meaning as in 
section 3 of the Federal Deposit Insurance Act and 
includes a credit union. 
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(2) NOT FIXED ON SEND.—The term ‘‘not fixed 
on send’’ when referring to an exchange rate used 
in a remittance transfer means an exchange rate 
that is not set by the remittance transfer provider 
at the time the consumer initiates the remittance 
transfer. 
(3) REMITTANCE
TRANSFER.—The term ‘‘re-
mittance transfer’’ means the electronic (as defined 
in section 106(2) of the Electronic Signatures in 
Global and National Commerce Act) transfer of 
funds to be effected or used primarily for personal, 
family, or household purposes at the request of a 
consumer located in any State to a person in an-
other country that is initiated by a remittance trans-
fer provider, whether or not the consumer is an ac-
count holder of the remittance transfer provider or 
whether or not the remittance transfer is also an 
electronic fund transfer, as defined in section 903 of 
the Electronic Fund Transfer Act. 
(4) REMITTANCE
TRANSFER
PROVIDER.—The 
term ‘‘remittance transfer provider’’ means any per-
son or depository institution, or agent thereof, that 
originates remittance transfers on behalf of con-
sumers in the normal course of its business, whether 
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or not the consumer is an account holder of that 
person or depository institution. 
(g) MODEL DISCLOSURES.— 
(1) PUBLICATION.—Notwithstanding any provi-
sions of this title, the Director shall establish and 
publish model disclosure forms to facilitate compli-
ance with the disclosure requirements of this section 
and to aid the consumer in understanding the trans-
action to which the subject disclosure form relates. 
(2) LANGUAGES TO BE USED IN MODEL DIS-
CLOSURES.—The Director shall make these disclo-
sures available within 1 year of the effective date of 
this title— 
(A) in English; and 
(B) the ten most frequently spoken lan-
guages in the United States, other than 
English, used by consumers initiating remit-
tance transfers, as may be determined by the 
Director. 
(3) USE OF AUTOMATED EQUIPMENT.—In es-
tablishing model forms under this subsection, the 
Director shall consider the use by lessors of data 
processing or similar automated equipment. 
(4) USE OPTIONAL.—A remittance transfer pro-
vider may utilize a model disclosure form established 
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by the Director under this subsection for purposes 
of compliance with this section, at the discretion of 
the remittance transfer provider. 
(5) EFFECT OF USE.—Any remittance transfer 
provider that properly uses the material aspects of 
any model disclosure form established by the Direc-
tor under this subsection shall be deemed to be in 
compliance with the disclosure requirements to 
which the form relates. 
(h) REGULATION AND EXEMPTION AUTHORITY.— 
Notwithstanding any other provisions of this title, the Di-
rector, in the sole discretion of the Director, in consulta-
tion with relevant Federal and State government agencies 
may by regulation exempt from one or more requirements 
of this section, any category of remittance transfer pro-
vider if the Director determines that under applicable Fed-
eral or State law that such category of remittance transfer 
provider is subject to requirements substantially similar 
to those imposed under this section or that such law gives 
greater protection and benefit to the consumer, and that 
there is adequate provision for enforcement. 
(i) APPLICABILITY OF STATE LAW.— 
(1) This section does not annul, alter, affect, or 
exempt any person subject to the provisions of this 
section from complying with other applicable Federal 
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law and the laws of any State relating to remittance 
transfers and remittance transfer providers, except 
to the extent that those laws are inconsistent with 
the provisions of this section, and then only to the 
extent of the inconsistency. 
(2) Notwithstanding any other provisions of 
this title, the Director may determine whether such 
inconsistencies exist. A State law is not inconsistent 
with this section if the protection such law affords 
any consumer is greater than the protection afforded 
by this section. If the Director determines that a 
State requirement is inconsistent, remittance trans-
fer providers shall incur no liability under the law of 
that State for a good faith failure to comply with 
that law, notwithstanding that such determination is 
subsequently amended, rescinded, or determined by 
judicial or other authority to be invalid for any rea-
son. This section does not extend the applicability of 
any such law to any class of persons or transactions 
to which it would not otherwise apply. 
(3) This section does not annul, alter, or affect 
the laws of any State relating to the licensing or 
registration, supervision or examination of remit-
tance transfer providers. 
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(4) 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 regu-
latory proceeding arising solely under the law of that 
State. 
(j) FEDERAL CREDIT UNION ACT AMENDMENT.— 
Paragraph (12)(A) of section 107 of the Federal Credit 
Union Act (12 U.S.C. 1757(12)(A)) is amended by insert-
ing ‘‘and remittance transfers, as defined in section 4309 
of the Consumer Financial Protection Agency Act of 
2009’’ after ‘‘and domestic electronic fund transfers’’. 
(k) AUTOMATED CLEARINGHOUSE SYSTEM.— 
(1) EXPANSION
OF
SYSTEM.—The Board of 
Governors of the Federal Reserve System shall work 
with the Federal reserve banks to expand the use of 
the automated clearinghouse system for remittance 
transfers to foreign countries, with a focus on coun-
tries that receive significant remittance transfers 
from the United States, based on— 
(A) the volume and dollar amount of re-
mittance transfers to those countries; 
(B) the significance of the volume of such 
transfers, relative to the external financial flows 
of the receiving country; and 
(C) the feasibility of such an expansion. 
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(2) REPORT TO THE CONGRESS.—Before the 
end of the 180-day period beginning on the date of 
the enactment of this title, and on April 30 bienni-
ally thereafter, the Board of Governors of the Fed-
eral Reserve System shall submit a report to the Di-
rector, the Committee on Banking, Housing, and 
Urban Affairs of the Senate, and the Committee on 
Financial Services of the House of Representatives 
on the status of the automated clearinghouse system 
and its progress in complying with the requirements 
of this section. 
(l) 
REGULATORY
GUIDANCE
ON
REMITTANCE 
TRANSFERS.— 
(1) PROVISION
OF
GUIDELINES
TO
INSTITU-
TIONS.—The Director shall provide guidelines to all 
remittance transfer providers regarding— 
(A) the offering of low-cost remittance 
transfers; 
(B) the availability of agency services to 
remittance transfer providers; 
(C) compliance with the provisions of this 
title; and 
(D) specific options that allow remittance 
transfer providers to take advantage of auto-
mated clearing systems, including the FedACH 
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International Services offered by the Board of 
Governors of the Federal Reserve System and 
the Federal reserve banks, to transmit remit-
tances at low cost. 
(2) CONTENT OF GUIDELINES.—Guidelines pro-
vided to remittance transfer providers under this 
section shall include— 
(A) information as to the methods of pro-
viding remittance transfer services; 
(B) the potential economic opportunities in 
providing low-cost remittance transfers; and 
(C) the potential value to depository insti-
tutions of broadening their financial bases to 
include persons that use remittance transfers. 
(3) ASSISTANCE TO FINANCIAL LITERACY COM-
MISSION.—The Secretary of the Treasury and each 
agency referred to in subsection (a) shall, as part of 
their duties as members of the Financial Literacy 
and Education Commission, assist that Commission 
in improving the financial literacy and education of 
consumers who send remittances. 
(m) REPORT ON FEASIBILITY OF AND IMPEDIMENTS 
TO USE OF REMITTANCE HISTORY IN CALCULATION OF 
CREDIT SCORE.—Before the end of the 365-day period 
beginning on the date of the enactment of this title, the 
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Director shall submit a report to the President, the Com-
mittee on Banking, Housing, and Urban Affairs of the 
Senate, and the Committee on Financial Services of the 
House of Representatives regarding— 
(1) the manner in which a consumer’s remit-
tance history could be used to enhance a consumer’s 
credit score; 
(2) the current legal and business model bar-
riers and impediments that impede the use of a con-
sumer’s remittance history to enhance the con-
sumer’s credit score; and 
(3) recommendations on the manner in which 
maximum transparency and disclosure to consumers 
of exchange rates for remittance transfers subject to 
this title may be accomplished, whether or not such 
exchange rates are known at the time of origination 
or payment by the consumer for the remittance 
transfer, including disclosure to the sender of the ac-
tual exchange rate used and the amount of currency 
that the recipient of the remittance transfer re-
ceived, using the values of the currency into which 
the funds were exchanged, as contained in section s 
919(a)(2)(D) and 919(a)(3) of the Electronic Fund 
Transfer Act (as amended by subsection (a)). 
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(n) EFFECTIVE DATE.—This section shall apply with 
respect to remittance transfers made after the end of the 
180-day period beginning on the date of the enactment 
of this title. 
SEC. 4310. EFFECTIVE DATE. 
This subtitle shall take effect on the designated 
transfer date. 
SEC. 4311. NO AUTHORITY TO REQUIRE THE OFFERING OF 
FINANCIAL PRODUCTS OR SERVICES. 
The Director may not prescribe any regulation, issue 
any order or guidance, or take any other action, including 
any enforcement action, the effect of which would be to 
require a covered person to offer to any consumer a spe-
cific financial product or service. 
SEC. 4312. APPRAISAL INDEPENDENCE REQUIREMENTS. 
(a) PROMULGATION OF NEW REQUIREMENTS.—The 
Director shall lead a Negotiated Rulemaking Committee 
under the Federal Advisory Committee Act and the Nego-
tiated Rulemaking Act to promulgate appraisal independ-
ence requirements for residential loan purposes, and such 
Committee shall promulgate such requirements not later 
than the end of the 60-day period beginning on the date 
of the enactment of this title. 
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(C) identify the custodian to whom such 
things shall be submitted. 
(5) DEMAND FOR WRITTEN REPORTS OR AN-
SWERS.—Each civil investigative demand for written 
reports or answers to questions shall— 
(A) propound with definiteness and cer-
tainty the reports to be produced or the ques-
tions to be answered; 
(B) prescribe a date or dates at which time 
written reports or answers to questions shall be 
submitted; and 
(C) identify the custodian to whom such 
reports or answers shall be submitted. 
(6) ORAL TESTIMONY.—Each civil investigative 
demand for the giving of oral testimony shall— 
(A) prescribe a date, time, and place at 
which oral testimony shall be commenced; and 
(B) identify a Agency investigator who 
shall conduct the investigation and the custo-
dian to whom the transcript of such investiga-
tion shall be submitted. 
(7) SERVICE.— 
(A) Any civil investigative demand may be 
served by any Agency investigator at any place 
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