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Fair Credit Reporting Act
ß 621. Administrative enforcement [15 U.S.C. ß 1681s]
(a)
(1) Enforcement by Federal Trade Commission. Compliance with the requirements
imposed under this title shall be enforced under the Federal Trade Commission
Act [15 U.S.C. §§ 41 et seq.] by the Federal Trade Commission with respect
to consumer reporting agencies and all other persons subject thereto, except to
the extent that enforcement of the requirements imposed under this title is specifically
committed to some other government agency under subsection (b) hereof. For the
purpose of the exercise by the Federal Trade Commission of its functions and powers
under the Federal Trade Commission Act, a violation of any requirement or prohibition
imposed under this title shall constitute an unfair or deceptive act or practice
in commerce in violation of section 5(a) of the Federal Trade Commission Act [15
U.S.C. § 45(a)] and shall be subject to enforcement by the Federal Trade
Commission under section 5(b) thereof [15 U.S.C. § 45(b)] with respect to
any consumer reporting agency or person subject to enforcement by the Federal
Trade Commission pursuant to this subsection, irrespective of whether that person
is engaged in commerce or meets any other jurisdictional tests in the Federal
Trade Commission Act. The Federal Trade Commission shall have such procedural,
investigative, and enforcement powers, including the power to issue procedural
rules in enforcing compliance with the requirements imposed under this title and
to require the filing of reports, the production of documents, and the appearance
of witnesses as though the applicable terms and conditions of the Federal Trade
Commission Act were part of this title. Any person violating any of the provisions
of this title shall be subject to the penalties and entitled to the privileges
and immunities provided in the Federal Trade Commission Act as though the applicable
terms and provisions thereof were part of this title.
(2)
(A) In the event of a knowing violation, which constitutes a pattern or practice
of violations of this title, the Commission may commence a civil action to recover
a civil penalty in a district court of the United States against any person
that violates this title. In such action, such person shall be liable for a
civil penalty of not more than $2,500 per violation.
(B) In determining the amount of a civil penalty under subparagraph (A), the
court shall take into account the degree of culpability, any history of prior
such conduct, ability to pay, effect on ability to continue to do business,
and such other matters as justice may require.
(3) Notwithstanding paragraph (2), a court may not impose any civil penalty on
a person for a violation of section 623(a)(1) [§ 1681s-2]
unless the person has been enjoined from committing the violation, or ordered
not to commit the violation, in an action or proceeding brought by or on behalf
of the Federal Trade Commission, and has violated the injunction or order, and
the court may not impose any civil penalty for any violation occurring before
the date of the violation of the injunction or order.
(b) Enforcement by other agencies. Compliance with the requirements
imposed under this title with respect to consumer reporting agencies, persons who
use consumer reports from such agencies, persons who furnish information to such
agencies, and users of information that are subject to subsection (d) of section
615 [§ 1681m] shall be enforced under
(1) section 8 of the Federal Deposit Insurance Act [12 U.S.C. § 1818], in
the case of
(A) national banks, and Federal branches and Federal agencies of foreign banks,
by the Office of the Comptroller of the Currency;
(B) member banks of the Federal Reserve System (other than national banks),
branches and agencies of foreign banks (other than Federal branches, Federal
agencies, and insured State branches of foreign banks), commercial lending companies
owned or controlled by foreign banks, and organizations operating under section
25 or 25A of the Federal Reserve Act [12 U.S.C. §§ 601 et seq., §§
611 et seq], by the Board of Governors of the Federal Reserve System; and
(C) banks insured by the Federal Deposit Insurance Corporation (other than
members of the Federal Reserve System) and insured State branches of foreign
banks, by the Board of Directors of the Federal Deposit Insurance Corporation;
(2) section 8 of the Federal Deposit Insurance Act [12 U.S.C. § 1818], by
the Director of the Office of Thrift Supervision, in the case of a savings association
the deposits of which are insured by the Federal Deposit Insurance Corporation;
(3) the Federal Credit Union Act [12 U.S.C. §§ 1751 et seq.], by the
Administrator of the National Credit Union Administration [National Credit Union
Administration Board] with respect to any Federal credit union;
(4) subtitle IV of title 49 [49 U.S.C. §§ 10101 et seq.], by the Secretary
of Transportation, with respect to all carriers subject to the jurisdiction of
the Surface Transportation Board;
(5) the Federal Aviation Act of 1958 [49 U.S.C. Appx §§ 1301 et seq.],
by the Secretary of Transportation with respect to any air carrier or foreign
air carrier subject to that Act [49 U.S.C. Appx §§ 1301 et seq.]; and
(6) the Packers and Stockyards Act, 1921 [7 U.S.C. §§ 181 et seq.]
(except as provided in section 406 of that Act [7 U.S.C. §§ 226 and
227]), by the Secretary of Agriculture with respect to any activities subject
to that Act. The terms used in paragraph (1) that are not defined in this title
or otherwise defined in section 3(s) of the Federal Deposit Insurance Act (12
U.S.C. §1813(s)) shall have the meaning given to them in section 1(b) of
the International Banking Act of 1978 (12 U.S.C. § 3101).
(c) State Action 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 this title, the State
(A) may bring an action to enjoin such violation in any appropriate United
States district court or in any other court of competent jurisdiction;
(B) subject to paragraph (5), 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 sections
616 and 617 [§§ 1681n and 1681o] as a result
of the violation;
(ii) in the case of a violation described in any of paragraphs (1) through
(3) of section 623(c), damages for which the person would,
but for section 623(c) [§ 1681s-2], be liable to
such residents as a result of the violation;
or
(iii) damages of not more than $1,000 for each willful or negligent violation;
and
(C) in the case of any successful action under subparagraph (A) or (B), shall
be awarded the costs of the action and reasonable attorney fees as determined
by the court.
(2) Rights of federal regulators. The State shall serve prior written notice
of any action under paragraph (1) upon the Federal Trade Commission or the appropriate
Federal regulator determined under subsection (b) and provide the Commission or
appropriate Federal regulator with a copy of its complaint, except in any case
in which such prior notice is not feasible, in which case the State shall serve
such notice immediately upon instituting such action. The Federal Trade Commission
or appropriate Federal regulator shall have the right
(A) to intervene in the action;
(B) upon so intervening, to be heard on all matters arising therein;
(C) to remove the action to the appropriate United States district court; and
(D) to file petitions for appeal.
(3) Investigatory powers. For purposes of bringing any action under this subsection,
nothing in this subsection shall prevent the chief law enforcement officer, 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 attendance of witnesses or the production of documentary and other evidence.
(4) Limitation on state action while federal action pending. If the Federal Trade
Commission or the appropriate Federal regulator has instituted a civil action
or an administrative action under section 8 of the Federal Deposit Insurance Act
for a violation of this title, no State may, during the pendency of such action,
bring an action under this section against any defendant named in the complaint
of the Commission or the appropriate Federal regulator for any violation of this
title that is alleged in that complaint.
(5) Limitations on State Actions for Certain Violations
(A) Violation of injunction required. A State may not bring an action against
a person under paragraph (1)(B) for a violation described in any of paragraphs
(1) through (3) of section 623(c), unless
(i) the person has been enjoined from committing the violation, in an action
brought by the State under paragraph (1)(A); and
(ii) the person has violated the injunction.
(B) Limitation on damages recoverable. In an action against a person under
paragraph (1)(B) for a violation described in any of paragraphs (1) through
(3) of section 623(c), a State may not recover any damages
incurred before the date of the violation of an injunction on which the action
is based.
(d) Enforcement under other authority. For the purpose of the exercise by any agency
referred to in subsection (b) of this section of its powers under any Act referred
to in that subsection, a violation of any requirement imposed under this title shall
be deemed to be a violation of a requirement imposed under that Act. In addition
to its powers under any provision of law specifically referred to in subsection
(b) of this section, each of the agencies referred to in that subsection may exercise,
for the purpose of enforcing compliance with any requirement imposed under this
title any other authority conferred on it by law.
(e) Regulatory authority
(1) The Federal banking agencies referred to in paragraphs (1) and (2) of subsection
(b) shall jointly prescribe such regulations as necessary to carry out the purposes
of this Act with respect to any persons identified under paragraphs (1) and (2)
of subsection (b), and the Board of Governors of the Federal Reserve System shall
have authority to prescribe regulations consistent with such joint regulations
with respect to bank holding companies and affiliates (other than depository institutions
and consumer reporting agencies) of such holding companies.
(2) The Board of the National Credit Union Administration shall prescribe such
regulations as necessary to carry out the purposes of this Act with respect to
any persons identified under paragraph (3) of subsection (b).
(f) Coordination of Consumer Complaint Investigations
(1) In general. Each consumer reporting agency described in section
603(p) shall develop and maintain procedures for the referral to each other
such agency of any consumer complaint received by the agency alleging identity
theft, or requesting a fraud alert under section 605A or
a block under section 605B.
(2) Model form and procedure for reporting identity theft. The Commission,
in consultation with the Federal banking agencies and the National Credit
Union Administration, shall develop a model form and model procedures
to be used by consumers who are victims of identity theft for contacting
and informing creditors and consumer reporting agencies of the fraud. See
also 70 Fed.Reg. 21792 (04/27/05)
(3) Annual summary reports. Each consumer reporting agency described in section
603(p) shall submit an annual summary report to the Commission on consumer
complaints received by the agency on identity theft or fraud alerts.
(g) FTC regulation of coding of trade names. If the Commission determines that
a person described in paragraph (9) of section 623(a) has not
met the requirements of such paragraph, the Commission shall take action to ensure
the person's compliance with such paragraph, which may include issuing model guidance
or prescribing reasonable policies and procedures, as necessary to ensure that such
person complies with such paragraph.
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Fair Credit Reporting Act - FCRA - Administrative enforcement
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