agency that is not superseded by a rule promulgated by 
the Commission shall remain in force without regard to 
this Act. 
(c) AGENCY AUTHORITY.—Any department or agen-
cy designated in subsection (d) may exercise, for the pur-
pose of enforcing compliance with any requirement im-
posed under this Act, any authority conferred on such de-
partment or agency by any other Act. 
(d) DESIGNATED DEPARTMENTS AND AGENCIES.— 
The departments and agencies designated in this sub-
section are— 
(1) the Board of Governors of the Federal Re-
serve System; 
(2) the Federal Deposit Insurance Corporation; 
(3) the Comptroller of the Currency; 
(4) the Director of the Office of Thrift Super-
vision; 
(5) the National Credit Union Administration; 
(6) the Federal Housing Finance Authority; 
(7) the Federal Housing Administration; 
(8) the Secretary of Housing and Urban Devel-
opment; 
(9) the Federal Trade Commission; and 
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(10) any successor to the agencies, referred to 
in paragraphs (1) through (9), as may be con-
stituted. 
(e) COORDINATION OF RULEMAKING.—Any depart-
ment or agency designated in subsection (d) that engages 
in a rulemaking affecting consumer financial products 
shall consult with the Commission in the promulgation of 
such rules. 
SEC. 7. AUTHORITIES. 
(a) AUTHORITY TO CONDUCT HEARINGS OR OTHER 
INQUIRIES.— 
(1) IN GENERAL.—The Commission may, by 1 
or more of its members, or by such agents or agency 
as it may designate, conduct any hearing or other 
inquiry necessary or appropriate to its functions 
anywhere in the United States. 
(2) MEMBER PARTICIPATION.—A Commissioner 
who participates in a hearing, or other inquiry de-
scribed in paragraph (1), shall not be disqualified 
solely by reason of such participation from subse-
quently participating in a decision of the Commis-
sion in the same matter. 
(3) NOTICE REQUIRED.—The Commission shall 
publish notice of any proposed hearing in the Fed-
eral Register, and shall afford a reasonable oppor-
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tunity for interested persons to present relevant tes-
timony and data. 
(b) COMMISSION POWERS; ORDERS.—The Commis-
sion shall have the power— 
(1) to require, by special or general orders, any 
person to submit in writing such reports and an-
swers to questions as the Commission may prescribe 
to carry out a specific regulatory or enforcement 
function of the Commission, and such submission 
shall be made within such reasonable period and 
under oath or otherwise as the Commission may de-
termine, and such order shall contain a complete 
statement of the reasons that the Commission re-
quires the report or answers specified in the order 
to carry out a specific regulatory or enforcement 
function of the Commission; 
(2) to administer oaths; 
(3) to require by subpoena the attendance and 
testimony of witnesses and the production of all doc-
umentary evidence relating to the execution of its 
duties; 
(4) in any proceeding or investigation to order 
testimony to be taken by deposition before any per-
son who is designated by the Commission and has 
the power to administer oaths and, in such in-
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stances, to compel testimony and the production of 
evidence in the same manner as authorized under 
paragraph (3); 
(5) to pay witnesses the same fees and mileage 
costs as are paid in like circumstances in the courts 
of the United States; 
(6) to accept voluntary and uncompensated 
services relevant to the performance of the duties of 
the Commission, notwithstanding the provisions of 
section 1342 of title 31, United States Code, and to 
accept voluntary and uncompensated services (but 
not gifts) relevant to the performance of the duties 
of the Commission provided that any such services 
shall not be from parties that have or are likely to 
have business before the Commission; 
(7) to— 
(A) issue an order requiring compliance 
with applicable legal requirements; 
(B) issue a civil penalty order in accord-
ance with section 10(b); 
(C) initiate, prosecute, defend, intervene 
in, or appeal (other than to the Supreme Court 
of the United States), through its own legal 
representative and in the name of the Commis-
sion, any civil action, if the Commission makes 
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a written request to the Attorney General of the 
United States for representation in such civil 
action and the Attorney General does not, with-
in the 45-day period beginning on the date on 
which such request was made, notify the Com-
mission in writing that the Attorney General 
will represent the Commission in such civil ac-
tion; and 
(D) whenever the Commission obtains evi-
dence that any person has engaged in conduct 
that may constitute a violation of Federal 
criminal law, including a violation of section 9, 
transmit such evidence to the Attorney General 
of the United States; and 
(8) to delegate any of its functions or powers, 
other than the power to issue subpoenas under para-
graph (3), to any officer or employee of the Commis-
sion. 
(c) NONCOMPLIANCE WITH SUBPOENA OR COMMIS-
SION ORDER.—If a person refuses to obey a subpoena or 
order of the Commission issued under subsection (b), the 
Commission (subject to subsection (b)(7)) or the Attorney 
General of the United States may bring an action in the 
United States district court for the district and division 
in which the inquiry is carried out or any other appro-
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priate United States district court seeking an order requir-
ing compliance with the subpoena or order. 
(d) DISCLOSURE OF INFORMATION.—No person shall 
be subject to civil liability to any person (other than the 
Commission or the United States) for disclosing informa-
tion to the Commission. 
(e) CUSTOMER AND REVENUE DATA.—The Commis-
sion may, by rule, require any provider of consumer finan-
cial products to provide to the Commission such customer 
and revenue data as may be required to carry out this 
Act. 
(f) PURCHASE OF CONSUMER FINANCIAL PRODUCTS 
BY COMMISSION.—For purposes of carrying out this Act, 
the Commission may purchase any consumer financial 
product and it may require any provider of consumer fi-
nancial products to sell the product to the Commission at 
cost. 
(g) CONTRACT AUTHORITY.—The Commission is au-
thorized to enter into contracts with governmental entities, 
private organizations, or individuals for the conduct of ac-
tivities authorized by this Act. 
(h) BUDGET ESTIMATES AND REQUESTS; LEGISLA-
TIVE RECOMMENDATIONS; TESTIMONY; COMMENTS
ON 
LEGISLATION.— 
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(1) BUDGET COPIES TO CONGRESS.—Whenever 
the Commission submits any budget estimate or re-
quest to the President or the Office of Management 
and Budget, it shall concurrently transmit a copy of 
that estimate or request to the appropriate commit-
tees of Congress. 
(2) LEGISLATIVE
RECOMMENDATION.—When-
ever the Commission submits any legislative rec-
ommendations, testimony, or comments on legisla-
tion to the President or the Office of Management 
and Budget, it shall concurrently transmit a copy 
thereof to the appropriate committees of Congress. 
No officer or agency of the United States shall have 
any authority to require the Commission to submit 
its legislative recommendations, testimony, or com-
ments on legislation, to any officer or agency of the 
United States for approval, comments, or review, 
prior to the submission of such recommendations, 
testimony, or comments to the appropriate commit-
tees of Congress. 
SEC. 8. COLLABORATION WITH FEDERAL AND STATE ENTI-
TIES. 
(a) PREEMPTION.—Nothing in this Act or any rule 
promulgated under this Act may be construed to annul, 
alter, affect, or exempt any person from complying with 
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the laws of any State, except to the extent that those laws 
are inconsistent with a consumer financial product safety 
rule promulgated by the Commission, and then only to the 
extent of the inconsistency. For purposes of this section, 
a State law is not inconsistent with this Act or a consumer 
financial product safety rule, or the purposes of the Act 
or rule, if the protection afforded by such State law to 
any consumer is greater than the protection provided by 
the consumer financial product safety rule or this Act. 
Nothing in this Act or any rule promulgated under this 
Act precludes any remedy under State law to or on behalf 
of a consumer. 
(b) PROGRAMS TO PROMOTE FEDERAL-STATE CO-
OPERATION.— 
(1) IN GENERAL.—The Commission shall estab-
lish a program to promote cooperation between the 
Federal Government and State governments for pur-
poses of carrying out this Act. 
(2) AUTHORITIES.—In implementing the pro-
gram under paragraph (1), the Commission may— 
(A) accept from any State or local author-
ity engaged in activities relating to consumer 
protection assistance in such functions as data 
collection, investigation, and educational pro-
grams, as well as other assistance in the admin-
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istration and enforcement of this Act which 
such States or local governments may be able 
and willing to provide and, if so agreed, may 
pay in advance or otherwise for the reasonable 
cost of such assistance; and 
(B) commission any qualified officer or 
employee of any State or local government 
agency as an officer of the Commission for the 
purpose of conducting investigations. 
(c) COOPERATION OF FEDERAL DEPARTMENTS AND 
AGENCIES.—The Commission may obtain from any Fed-
eral department or agency such statistics, data, program 
reports, and other materials as it may determine necessary 
to carry out its functions under this Act. Each such de-
partment or agency shall cooperate with the Commission 
and, to the extent permitted by law, furnish such materials 
to the Commission. The Commission and the heads of 
other departments and agencies engaged in administering 
programs relating to consumer financial product safety 
shall, to the maximum extent practicable, cooperate and 
consult in order to ensure fully coordinated efforts. 
SEC. 9. PROHIBITED ACTS. 
It shall be unlawful for any person— 
(1) to advertise, offer, or attempt to enforce 
any agreement, term, change in term, fee, or charge 
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in connection with any consumer financial product, 
or engage in any practice, that is not in conformity 
with this Act or an applicable consumer financial 
product safety rule under this Act; or 
(2) to fail or refuse to permit access to or copy-
ing of records, or fail or refuse to establish or main-
tain records, or fail or refuse to make reports or 
provide information to the Commission, as required 
under this Act or any rule under this Act. 
SEC. 10. ENFORCEMENT. 
(a) CRIMINAL PENALTIES.— 
(1) KNOWING AND WILLFUL VIOLATIONS.—Any 
person who knowingly and willfully violates section 9 
shall be fined not more than $500,000, imprisoned 
not more than 1 year, or both for each such viola-
tion. 
(2) EXECUTIVES AND AGENTS.—Any individual 
director, officer, or agent of a business entity who 
knowingly and willfully authorizes, orders, or per-
forms any of the acts or practices constituting in 
whole or in part a violation of section 9 shall be sub-
ject to penalties under this section, without regard 
to any penalties to which that person may be other-
wise subject. 
(b) CIVIL PENALTIES.— 
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(1) IN GENERAL.—Any person who violates sec-
tion 9 shall be subject to a civil penalty in an 
amount established under paragraph (2). A violation 
of section 9 shall constitute a separate civil offense 
with respect to each consumer financial product 
transaction involved. 
(2) PUBLICATION
OF
SCHEDULE
OF
PEN-
ALTIES.—Not later than December 1, 2009, and De-
cember 1 of each fifth year thereafter, the Commis-
sion shall prescribe and publish in the Federal Reg-
ister a schedule of the maximum authorized civil 
penalty that shall apply for any violation of section 
9 that occurs on or after January 1 of the year im-
mediately following the date of such publication. 
(3) RELEVANT
FACTORS
IN
DETERMINING 
AMOUNT OF PENALTY.—In determining the amount 
of any civil penalty in an action for a violation of 
section 9, the Commission— 
(A) shall consider— 
(i) the nature of the consumer finan-
cial product; 
(ii) the severity of the unreasonable 
risk to the consumer; 
(iii) the number of products or serv-
ices sold or distributed; 
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(iv) the occurrence or absence of con-
sumer injury; and 
(v) the appropriateness of such pen-
alty in relation to the size of the business 
of the person charged; and 
(B) shall ensure that penalties in each case 
are sufficient to induce compliance by all regu-
lated entities. 
(4) COMPROMISE
OF
PENALTY; DEDUCTIONS 
FROM PENALTY.— 
(A) IN GENERAL.—Any civil penalty under 
this section may be compromised by the Com-
mission. 
(B) 
CONSIDERATIONS.—In 
determining 
the amount of such penalty or whether it should 
be remitted or mitigated and in what amount, 
the Commission— 
(i) shall consider— 
(I) the nature of the consumer fi-
nancial product; 
(II) the severity of the unreason-
able risk to the consumer; 
(III) the number of offending 
products or services sold; 
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(IV) the occurrence or absence of 
consumer injury; and 
(V) the appropriateness of such 
penalty to the size of the business of 
the person charged; and 
(ii) shall ensure that compromise pen-
alties remain sufficient to induce compli-
ance by all regulated entities. 
(C) AMOUNT.—The amount of a penalty 
compromised under this paragraph, when fi-
nally determined, or the amount agreed on com-
promise, may be deducted from any sums owing 
by the United States to the person charged. 
(c) COLLECTION AND USE OF PENALTIES.— 
(1) ESTABLISHMENT OF FUND.—There is es-
tablished within the Treasury of the United States 
a fund, into which shall be deposited all criminal and 
civil penalties collected under this section. 
(2) USE
OF
FUND.—The fund established 
under this subsection shall be used to defray the 
costs of the operations of the Commission or, where 
appropriate, provide restitution to harmed con-
sumers. 
(d) PRIVATE ENFORCEMENT.— 
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(1) IN GENERAL.—A person may bring a civil 
action for a violation of section 9 for equitable relief 
and other charges and costs in an amount equal to 
the sum of— 
(A) any actual damages sustained by such 
person as a result of such violation, if actual 
damages resulted; 
(B) twice the amount of any finance 
charge in connection with the transaction, ex-
cept that such liability shall not be less than 
$1,000, such minimum to be adjusted on an an-
nual basis by the Commission based upon the 
consumer price index; and 
(C) reasonable attorney fees and costs. 
(e) JURISDICTION.— 
(1) IN GENERAL.—Any action under this Act 
may be brought in any appropriate United States 
district court, or in any other court of competent ju-
risdiction, not later than 2 years after the date of 
the discovery of the violation. 
(2) RULES
OF
CONSTRUCTION.—This section 
does not bar a person from asserting a violation of 
this Act in an action to collect a debt, or if fore-
closure has been initiated, as a matter of defense by 
recoupment or set-off. An action under this Act shall 
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not be the basis for removal of an action to a United 
States district court. Neither this section nor any 
other section of this Act preempts or otherwise dis-
places claims and remedies available under State 
law, except as otherwise specifically provided in this 
Act. 
(f) STATE ACTIONS FOR VIOLATIONS.— 
(1) AUTHORITY
OF
STATES.—In addition to 
such other remedies as are provided under State 
law, if the chief law enforcement officer of a State, 
or an official or agency designated by a State, has 
reason to believe that any person has violated or is 
violating section 9, the State— 
(A) may bring an action to enjoin such vio-
lation in any appropriate United States district 
court or in any other court of competent juris-
diction; 
(B) may bring an action on behalf of the 
residents of the State to recover— 
(i) damages for which the person is 
liable to such residents under subsection 
(d) as a result of the violation; and 
(ii) civil penalties, as established 
under subsection (b); and 
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(C) in the case of any successful action 
under subparagraph (A) or (B), shall be award-
ed the costs of the action and reasonable attor-
ney fees, as determined by the court. 
(2) RIGHTS OF FEDERAL REGULATORS.— 
(A) NOTICE OF STATE ACTION.—A State 
shall serve prior written notice of any action 
under paragraph (1) upon the Commission and 
provide the Commission with a copy of its com-
plaint, except in any case in which such prior 
notice is not feasible, in which case the State 
shall serve such notice immediately upon insti-
tuting such action. 
(B) COMMISSION AUTHORIZATION.—Upon 
notice of an action under subparagraph (A), the 
Commission shall have the right— 
(i) to intervene in the action; 
(ii) upon so intervening, to be heard 
on all matters arising therein; 
(iii) to remove the action to the appro-
priate United States district court; and 
(iv) to file petitions for appeal. 
(3) INVESTIGATORY POWERS.—For purposes of 
bringing any action under this subsection, nothing in 
this subsection or in any other provision of Federal 
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law shall prevent the chief law enforcement officer of 
a State, or an official or agency designated by a 
State, from exercising the powers conferred on the 
chief law enforcement officer or such official by the 
laws of such State to conduct investigations or to 
administer oaths or affirmations or to compel the at-
tendance of witnesses or the production of documen-
tary and other evidence. 
(4) LIMITATION ON STATE ACTION WHILE FED-
ERAL ACTION PENDING.—If the Commission has in-
stituted a civil action or an administrative action for 
a violation of section 9, a State may not, during the 
pendency of such action, bring an action under this 
section against any defendant named in the com-
plaint of the Commission for any violation of section 
9 that is alleged in that complaint. 
SEC. 11. REPORTS. 
(a) REPORTS
TO
THE PUBLIC.—The Commission 
shall determine what reports should be produced and dis-
tributed to the public on a recurring and ad hoc basis, 
and shall prepare and publish such reports on a website 
that provides free access to the general public. 
(b) REPORT TO THE PRESIDENT AND CONGRESS.— 
(1) IN GENERAL.—The Commission shall pre-
pare and submit to the President and the appro-
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