12 U.S.C. § 5517 — Limitations on authorities of the Bureau; preservation of authorities
submitted 16 years ago by Pub. L. 111-203 to r/title-12-BANKS-AND-BANKING · 4,060 words · no verdicts yet
This section limits the Bureau’s authority over sellers of nonfinancial goods, real estate brokers, manufactured-home retailers, accountants, lawyers, insurers, benefit plans, and persons regulated by specified agencies. It preserves other authorities and allows limited Bureau action for specified financial activities, consumer laws, information requests, and agency requests.
(a) Merchants, retailers, and other sellers of nonfinancial goods or services. (1) Sale or brokerage. The Bureau* may not use rulemaking, supervisory, enforcement, or other authority under this title against a merchant, retailer, or seller engaged in selling or brokering a nonfinancial good or service. This exception does not apply to the extent the person* offers or provides a consumer financial product or service*, or is subject to an enumerated consumer* law or a law whose authority was transferred under subtitle F or H.
(2)(A) Certain financial activities connected with a nonfinancial sale. Subject to (B) and (C), the Bureau may not use that authority against such a merchant, retailer, or seller to the extent the person (i) directly gives a consumer credit* solely so the consumer can buy the nonfinancial good or service directly from that seller, when the good or service is not itself a consumer financial product or service* other than that credit; (ii) directly, or through an agreement with another person, collects debt from that credit; or (iii) sells or transfers that debt when it is delinquent or otherwise in default.
(B) When (A) does not apply. Subparagraph (A) does not cover a credit transaction or debt collection arising from an (A) transaction, except as described in (C)(i), if (i) the seller assigns, sells, or otherwise transfers the consumer’s debt to another person, other than selling delinquent or defaulted debt as described in (A)(iii); (ii) the credit greatly exceeds the market value of the good or service, or the Bureau finds the sale is a scheme to evade or get around this title; or (iii) the seller regularly gives credit and the credit has a finance charge.
(C) Limits. (i) Despite (B), (A) applies to a seller that is not significantly engaged in offering or providing consumer financial products or services. (ii) (A) and clause (i) do not apply to a seller (I) engaged in a transaction described in (B)(i) or (B)(ii), or (II) to the extent the seller is subject to an enumerated consumer law or a law transferred under subtitle F or H. In the latter case, the Bureau may act only under that law.
(D) Rules. (i) Other agencies. Nothing in this title changes, limits, or replaces the FTC’s or another agency’s supervisory or enforcement authority over credit directly given by a merchant or retailer solely to let a consumer buy that seller’s nonfinancial goods or services, or over collection of debt from that credit. (ii) Small businesses. A seller otherwise covered only because of (B)(iii) is treated as not significantly engaged in consumer financial products or services under (C)(i) if the seller (I) gives credit only for selling nonfinancial goods or services as described in (A)(i), (II) keeps that credit on its own accounts, except for selling or transferring delinquent or defaulted debt, and (III) meets the relevant annual-receipts industry size threshold for a small business concern under section 3 of the Small Business Act and its rules. (iii) First year. During its first year, a seller is treated as meeting that threshold if its receipts are reasonably expected to meet it. (iv) Other small-business standards. If the Small Business Act classifies the seller using something other than annual receipts, the seller is treated as meeting the threshold if it meets the applicable threshold based on employees or another measure established under that Act. (E) State* enforcement. To the extent the Bureau cannot act under this subsection against such a seller, a State attorney general or regulator may not bring an action under section 5552(a) for a claim under this title concerning an activity in (A)(i) through (iii) by that seller.
(b) Real estate brokerage. (1) Excluded activities. Without limiting (a), and except as paragraph (2) permits, the Bureau may not use authority under this title against a person licensed or registered under State law as a real estate broker or agent, to the extent the person (A) acts as an agent or broker for a buyer, seller, lessor, or lessee of real property; (B) brings together people interested in selling, buying, leasing, renting, or exchanging real property; (C) negotiates part of a contract for those transactions, except in connection with providing financing; or (D) offers to do any activity or act in any capacity described in (A), (B), or (C). (2) Permitted activities. The Bureau may act against that person when the person (A) offers or provides a consumer financial product or service, but only regarding that activity, or (B) is otherwise subject to an enumerated consumer law or a law transferred under subtitle F or H, but only regarding that law.
(c) Manufactured and modular home retailers. (1) In general. The Director* may not use authority over a person to the extent (A) the person is not described in paragraph (2), and (B) the person (i) acts as an agent or broker for a buyer or seller of a manufactured or modular home; (ii) helps a consumer buy one by negotiating its price or sales-contract terms, except by providing financing; or (iii) offers to do (i) or (ii). (2) Description of activities. A person is described here to the extent it offers or provides a consumer financial product or service, or is subject to an enumerated consumer law or a law transferred under subtitle F or H. (3) Definitions. (A) “Manufactured home” has the same meaning as in section 5402 of title 42. This section does not provide that meaning itself. (B) “Modular 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 located, with the modules transported to the site, installed on foundations, and completed.
(d) Accountants and tax preparers. (1) In general. Except as paragraph (2) permits, the Bureau may not use authority over (A) a certified public accountant, a permitted certified public accounting firm, or a person certified or licensed for that purpose by a State, or an employee or owner of such a person, when performing or offering (i) customary and usual accounting activities, including accounting, tax, advisory, or other services regulated by a State accountancy board or Federal authority, or (ii) services incidental to those activities, if the incidental services are not offered separately from those activities and are not offered to consumers who are not receiving them; or (B) another person who performs income-tax preparation for consumers. (2) Activities not excluded. (A) Paragraph (1) does not apply to either kind of person to the extent the person offers or provides a consumer financial product or service through an activity that is not a customary and usual accounting activity or incidental to one. For a person described in (1)(A), the exclusion remains for customary and usual accounting activities and incidental activities. (B) Extending or brokering credit is not a customary and usual accounting activity or incidental to one. (C) A person described in (1)(A) is not treated as extending credit when it only gives credit directly to a consumer, solely so the consumer can buy that person’s accounting, tax, advisory, or incidental services directly, if the credit has no finance charge and the written agreement requires no more than four installments. (D) Paragraph (1) does not apply to a person described there to the extent the person is otherwise subject to an enumerated consumer law or a law transferred under subtitle F or H.
(e) Practice of law. (1) Except as paragraph (2) provides, the Bureau may not use supervisory or enforcement authority concerning an activity an attorney performs as part of practicing law under the law of a State where the attorney is licensed. (2) Paragraph (1) does not limit Bureau authority concerning a consumer financial product or service described in section 5481(5) that (A) is not offered as part of, or incidental to, legal practice occurring only within the attorney-client relationship, or (B) the attorney offers to a consumer who is not receiving the attorney’s legal advice or services in connection with that product or service. (3) Paragraph (1) does not limit Bureau authority over an attorney to the extent the attorney is otherwise subject to an enumerated consumer law or a law transferred under subtitle F or H.
(f) State-regulated insurance persons. (1) This title does not change, limit, or replace a State insurance regulator’s authority to make rules, begin enforcement, or take other action concerning a person it regulates. Except as paragraph (2) provides, the Bureau may not enforce this title against that person. (2) The exception does not apply to the extent the person offers or provides a consumer financial product or service or is subject to an enumerated consumer law or a law transferred under subtitle F or H. (3) Despite (2), the Bureau may not exercise authorities granted to a State insurance authority under section 6805(a)(6) of title 15 concerning a person regulated by a State insurance authority.
(g) Employee plans and certain title 26 arrangements. (1) Nothing in this title changes the authority of the Treasury Secretary, Labor Secretary, or Commissioner of Internal Revenue to regulate, enforce, or otherwise act concerning a specified plan or arrangement. (2) A person is not treated as offering or providing a consumer financial product or service solely because the person is (A) a specified plan or arrangement, (B) establishing or maintaining one for its employees or members of an employee organization, or (C) establishing or maintaining a qualified tuition program under section 529(b)(1) of title 26 offered by a State or another State prepaid-tuition program. (3)(A) Except as (B) and (C) provide, the Bureau may not use rulemaking or enforcement authority concerning products or services related to a specified plan or arrangement. (B)(i) The Treasury Secretary and Labor Secretary may jointly send the Bureau a written request about implementing appropriate consumer-protection standards under this title for services related to a specified plan or arrangement. (ii) In response to a Bureau request, they must jointly give a written response within 90 days, granting or denying the request about those standards. (iii) Subject to a request or response under (i) or (ii), the Bureau may make rules and enforce a rule made under that request or response according to this title. The joint request or response must state the basis and scope of the standards. (C) If a person providing products or services related to a specified plan or arrangement is subject to an enumerated consumer law or a law transferred under subtitle F or H, (A) does not apply to that law. (4) “Specified plan or arrangement” means a plan, account, or arrangement described in section 220, 223, 401(a), 403(a), 403(b), 408, 408A, 529, 529A, or 530 of title 26; an employee benefit or compensation plan or arrangement, including one subject to title I of ERISA; or a State prepaid-tuition program. This section defines the term.
(h) State securities commissions. (1) Nothing in this title changes a State securities commission’s authority to make rules, begin enforcement, or take other action concerning a person it regulates. Except as paragraph (2) and subsection (f) permit, the Bureau may not enforce this title against such a person to the extent the person acts in that regulated capacity. (2) Paragraph (1) does not apply to the extent the person offers or provides a consumer financial product or service or is subject to an enumerated consumer law or a law transferred under subtitle F or H.
(i) Persons regulated by the Commission. (1) Nothing in this title changes the Commission’s authority to make rules, begin enforcement, or take other action concerning a person it regulates. The Bureau may not enforce this title against that person. (2) Despite (1), the Commission must consult and coordinate, when feasible, with the Bureau about a rule, including an advance notice of proposed rulemaking, concerning an investment product or service that is the same type as, or directly competes with, a consumer financial product or service under the Bureau’s jurisdiction. The agencies must negotiate procedures for coordination, including advance notice to the Bureau when the Commission starts rulemaking.
(j) Commodity Futures Trading Commission. (1) Nothing in this title changes the Commission’s authority to make rules, begin enforcement, or take other action concerning a person it regulates. The Bureau may not enforce this title against that person. (2) The Commodity Futures Trading Commission must consult and coordinate with the Bureau about a rule, including an advance notice of proposed rulemaking, concerning a product or service that is the same type as, or directly competes with, a consumer financial product or service under the Bureau’s jurisdiction.
(k) Farm Credit Administration. (1) Nothing in this title changes the Farm Credit Administration’s authority to make rules, begin enforcement, or take other action concerning a person it regulates. The Bureau may not enforce this title against that person. (2) “Person regulated by the Farm Credit Administration” means a Farm Credit System institution chartered and subject to the Farm Credit Act of 1971. This section defines the term.
(l) Charitable contributions. (1) The Director and Bureau may not use rulemaking, supervisory, enforcement, penalty, or other authority over activities related to soliciting or making voluntary contributions to an Internal Revenue Service-recognized tax-exempt organization. This applies to the organization’s agent, volunteer, or representative to the extent that person solicits or gives advice, information, education, or instruction to a donor or potential donor about a contribution to the organization. (2) The exclusion does not cover other activities not described in (1) that offer or provide a consumer financial product or service or are subject to an enumerated consumer law or a law transferred under subtitle F or H.
(m) Insurance. The Bureau may not define engaging in the business of insurance* as a financial product or service, by regulation or otherwise.
(n) Limited Bureau authority. Despite subsections (a) through (h) and (l), a person covered by one or more of them (1) may be a service provider* and (2) may receive Bureau information requests or requirements needed for the Bureau’s responsibilities and functions and made under section 5512, 5562, or 5563.
(o) Usury limits. Nothing in this title gives the Bureau authority to establish a usury limit for credit offered or made by a covered person* to a consumer unless a law expressly authorizes it.
(p) Attorney General. Nothing in this title, including section 5514(c)(1), affects the Attorney General’s authority under otherwise applicable law.
(q) Treasury Secretary. Nothing in this title affects the Secretary’s authority, including authority to make rules, begin enforcement, or take other action concerning a person that prepares income taxes for consumers.
(r) Deposit and share insurance. Nothing in this title affects the Corporation’s authority under the Federal Deposit Insurance Act concerning deposit insurance, or the National Credit Union Administration Board’s authority under the Federal Credit Union Act concerning share insurance.
(s) Fair Housing Act. Nothing in this title may be interpreted as affecting authority arising under the Fair Housing Act.
The Bureau* may not exercise any rulemaking, supervisory, enforcement or other authority under this title 1 with respect to a person* who is a merchant, retailer, or seller of any nonfinancial good or service and is engaged in the sale or brokerage of such nonfinancial good or service, except to the extent that such person is engaged in offering or providing any consumer financial product or service*, or is otherwise subject to any enumerated consumer* law or any law for which authorities are transferred under subtitle F or H.
Except as provided in subparagraph (B), and subject to subparagraph (C), the Bureau may not exercise any rulemaking, supervisory, enforcement, or other authority under this title 1 with respect to a merchant, retailer, or seller of nonfinancial goods or services, but only to the extent that such person—
extends credit* directly to a consumer, in a case in which the good or service being provided is not itself a consumer financial product or service* (other than credit described in this subparagraph), exclusively for the purpose of enabling that consumer to purchase such nonfinancial good or service directly from the merchant, retailer, or seller;
directly, or through an agreement with another person, collects debt arising from credit extended as described in clause (i); or
sells or conveys debt described in clause (i) that is delinquent or otherwise in default.
Subparagraph (A) does not apply to any credit transaction or collection of debt, other than as described in subparagraph (C)(i), arising from a transaction described in subparagraph (A)—
in which the merchant, retailer, or seller of nonfinancial goods or services assigns, sells or otherwise conveys to another person such debt owed by the consumer (except for a sale of debt that is delinquent or otherwise in default, as described in subparagraph (A)(iii));
in which the credit extended significantly exceeds the market value of the nonfinancial good or service provided, or the Bureau otherwise finds that the sale of the nonfinancial good or service is done as a subterfuge, so as to evade or circumvent the provisions of this title; 1 or
in which the merchant, retailer, or seller of nonfinancial goods or services regularly extends credit and the credit is subject to a finance charge.
Notwithstanding subparagraph (B), subparagraph (A) shall apply with respect to a merchant, retailer, or seller of nonfinancial goods or services that is not engaged significantly in offering or providing consumer financial products or services.
Subparagraph (A) and clause (i) of this subparagraph do not apply to any merchant, retailer, or seller of nonfinancial goods or services—
if such merchant, retailer, or seller of nonfinancial goods or services is engaged in a transaction described in subparagraph (B)(i) or (B)(ii); or
to the extent that such merchant, retailer, or seller is subject to any enumerated consumer law or any law for which authorities are transferred under subtitle F or H, but the Bureau may exercise such authority only with respect to that law.
No provision of this title 1 shall be construed as modifying, limiting, or superseding the supervisory or enforcement authority of the Federal Trade Commission or any other agency (other than the Bureau) with respect to credit extended, or the collection of debt arising from such extension, directly by a merchant or retailer to a consumer exclusively for the purpose of enabling that consumer to purchase nonfinancial goods or services directly from the merchant or retailer.
A merchant, retailer, or seller of nonfinancial goods or services that would otherwise be subject to the authority of the Bureau solely by virtue of the application of subparagraph (B)(iii) shall be deemed not to be engaged significantly in offering or providing consumer financial products or services under subparagraph (C)(i), if such person—
only extends credit for the sale of nonfinancial goods or services, as described in subparagraph (A)(i);
retains such credit on its own accounts (except to sell or convey such debt that is delinquent or otherwise in default); and
meets the relevant industry size threshold to be a small business concern, based on annual receipts, pursuant to section 3 of the Small Business Act (15 U.S.C. 632) and the implementing rules thereunder.
A merchant, retailer, or seller of nonfinancial goods or services shall be deemed to meet the relevant industry size threshold described in clause (ii)(III) during the first year of operations of that business concern if, during that year, the receipts of that business concern reasonably are expected to meet that size threshold.
With respect to a merchant, retailer, or seller of nonfinancial goods or services that is a classified on a basis other than annual receipts for the purposes of section 3 of the Small Business Act (15 U.S.C. 632) and the implementing rules thereunder, such merchant, retailer, or seller shall be deemed to meet the relevant industry size threshold described in clause (ii)(III) if such merchant, retailer, or seller meets the relevant industry size threshold to be a small business concern based on the number of employees, or other such applicable measure, established under that Act [15 U.S.C. 631 et seq.].
To the extent that the Bureau may not exercise authority under this subsection with respect to a merchant, retailer, or seller of nonfinancial goods or services, no action by a State attorney general or State regulator with respect to a claim made under this title 1 may be brought under subsection 5552(a) of this title, with respect to an activity described in any of clauses (i) through (iii) of subparagraph (A) by such merchant, retailer, or seller of nonfinancial goods or services.
Without limiting subsection (a), and except as permitted in paragraph (2), the Bureau may not exercise any rulemaking, supervisory, enforcement, or other authority under this title 1 with respect to a person that is licensed or registered as a real estate broker or real estate agent, in accordance with State law, to the extent that such person—
acts as a real estate agent or broker for a buyer, seller, lessor, or lessee of real property;
brings together parties interested in the sale, purchase, lease, rental, or exchange of real property;
negotiates, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property (other than in connection with the provision of financing with respect to any such transaction); or
offers to engage in any activity, or act in any capacity, described in subparagraph (A), (B), or (C).
The Bureau may exercise rulemaking, supervisory, enforcement, or other authority under this title 1 with respect to a person described in paragraph (1) when such person is—
engaged in an activity of offering or providing any consumer financial product or service, except that the Bureau may exercise such authority only with respect to that activity; or
otherwise subject to any enumerated consumer law or any law for which authorities are transferred under subtitle F or H, but the Bureau may exercise such authority only with respect to that law.
The Director* may not exercise any rulemaking, supervisory, enforcement, or other authority over a person to the extent that—
such person is not described in paragraph (2); and
such person—
acts as an agent or broker for a buyer or seller of a manufactured home or a modular home;
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
offers to engage in any activity described in clause (i) or (ii).
A person is described in this paragraph to the extent that such person is engaged in the offering or provision of any consumer financial product or service or is otherwise subject to any enumerated consumer law or any law for which authorities are transferred under subtitle F or H.
For purposes of this subsection, the following definitions shall apply:
The term “manufactured home” has the same meaning as in section 5402 of title 42.
The term “modular home” means a house built in a factory in 2 or more modules that meet the State or local building codes where the house will be located, and where such modules are transported to the building site, installed on foundations, and completed.
Except as permitted in paragraph (2), the Bureau may not exercise any rulemaking, supervisory, enforcement, or other authority over—
any person that is a certified public accountant, 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 interest with respect to a person described in this subparagraph, when such person is performing or offering to perform—
customary and usual accounting activities, including the provision of accounting, tax, advisory, or other services that are subject to the regulatory authority of a State board of accountancy or a Federal authority; 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 apart from such customary and usual accounting activities; or
to consumers who are not receiving such customary and usual accounting activities; or
any person, other than a person described in subparagraph (A) 2 that performs income tax preparation activities for consumers.
Paragraph (1) shall not apply to any person described in paragraph (1)(A) or (1)(B) to the extent that 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 the offering or provision of any consumer financial product or service, except to the extent that a person described in paragraph (1)(A) is engaged in an activity which is a customary and usual accounting activity described in paragraph (1)(A), or incidental thereto.
For purposes of this subsection, extending or brokering credit is not a customary and usual accounting activity, or incidental thereto.
For purposes of subparagraphs (A) and (B), a person described in paragraph (1)(A) shall not be deemed to be extending credit, if such person is only extending credit directly to a consumer, exclusively for the purpose of enabling such consumer to purchase services described in clause (i) or (ii) of paragraph (1)(A) directly from such person, and such credit is—
not subject to a finance charge; and
not payable by written agreement in more than 4 installments.
Paragraph (1) does not apply to any person described in paragraph (1)(A) or (1)(B) that is otherwise subject to any enumerated consumer law or any law for which authorities are transferred under subtitle F or H.
Except as provided under paragraph (2), the Bureau may not exercise any supervisory or enforcement authority with respect to an activity engaged in by an attorney as part of the practice of law under the laws of a State in which the attorney is licensed to practice law.
Paragraph (1) shall not be construed so as to limit the exercise by the Bureau of any supervisory, enforcement, or other authority regarding the offering or provision of a consumer financial product or service described in any subparagraph of section 5481(5) of this title—
that is not offered or provided as part of, or incidental to, the practice of law, occurring exclusively within the scope of the attorney-client relationship; or
that is otherwise offered or provided by the attorney in question with respect to any consumer who is not receiving legal advice or services from the attorney in connection with such financial product or service.
Paragraph (1) shall not be construed so as to limit the authority of the Bureau with respect to any attorney, to the extent that such attorney is otherwise subject to any of the enumerated consumer laws* or the authorities transferred under subtitle F or H.
No provision of this title 1 shall be construed as altering, amending, or affecting the authority of any State insurance regulator to adopt rules, initiate enforcement proceedings, or take any other action with respect to a person regulated by a State insurance regulator*. Except as provided in paragraph (2), the Bureau shall have no authority to exercise any power to enforce this title 1 with respect to a person regulated by a State insurance regulator.
Paragraph (1) does not apply to any person described in such paragraph to the extent that such person is engaged in the offering or provision of any consumer financial product or service or is otherwise subject to any enumerated consumer law or any law for which authorities are transferred under subtitle F or H.
Notwithstanding paragraph (2), the Bureau shall not exercise any authorities that are granted a State insurance authority under section 6805(a)(6) of title 15 with respect to a person regulated by a State insurance authority.
No provision of this title 1 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, or take any actions with respect to any specified plan or arrangement.
For purposes of this title,1 a person shall not be treated as having engaged in the offering or provision of any consumer financial product or service solely because such person is—
a specified plan or arrangement;
engaged in the activity of establishing or maintaining, for the benefit of employees of such person (or for members of an employee organization), any specified plan or arrangement; or
engaged in the activity of establishing or maintaining a qualified tuition program under section 529(b)(1) of title 26 offered by a State or other prepaid tuition program offered by a State.
Except as provided under subparagraphs (B) and (C), the Bureau may not exercise any rulemaking or enforcement authority with respect to products or services that relate to any specified plan or arrangement.
The Secretary and the Secretary of Labor may jointly issue a written request to the Bureau regarding implementation of appropriate consumer protection standards under this title 1 with respect to the provision of services relating to any specified plan or arrangement.
In response to a request by the Bureau, the Secretary and the Secretary of Labor shall jointly issue a written response, not later than 90 days after receipt of such request, to grant or deny the request of the Bureau regarding implementation of appropriate consumer protection standards under this title 1 with respect to the provision of services relating to any specified plan or arrangement.
Subject to a request or response pursuant to clause (i) or clause (ii) by the agencies made under this subparagraph, the Bureau may exercise rulemaking authority, and may act to enforce a rule prescribed pursuant to such request or response, in accordance with the provisions of this title.1 A request or response made by the Secretary and the Secretary of Labor under this subparagraph shall describe the basis for, and scope of, appropriate consumer protection standards to be implemented under this title 1 with respect to the provision of services relating to any specified plan or arrangement.
To the extent that a person engaged in providing products or services relating to any specified plan or arrangement is subject to any enumerated consumer law or any law for which authorities are transferred under subtitle F or H, subparagraph (A) shall not apply with respect to that law.
For purposes of this subsection, the term “specified plan or arrangement” means any plan, account, or arrangement described in section 220, 223, 401(a), 403(a), 403(b), 408, 408A, 529, 529A, or 530 of title 26, or any employee benefit or compensation plan or arrangement, including a plan that is subject to title I of the Employee Retirement Income Security Act of 1974 [29 U.S.C. 1001 et seq.], or any prepaid tuition program offered by a State.
No provision of this title 1 shall be construed as altering, amending, or affecting the authority of any securities commission (or any agency or office performing like functions) of any State to adopt rules, initiate enforcement proceedings, 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 (f), the Bureau shall have no authority to exercise any power to enforce this title 1 with respect to a person regulated by any securities commission (or any agency or office performing like functions) of any State, but only to the extent that the person acts in such regulated capacity.
Paragraph (1) shall not apply to any person to the extent such person is engaged in the offering or provision of any consumer financial product or service, or is otherwise subject to any enumerated consumer law or any law for which authorities are transferred under subtitle F or H.
No provision of this title 1 may be construed as altering, amending, or affecting the authority of the Commission to adopt rules, initiate enforcement proceedings, or take any other action with respect to a person regulated by the Commission*. The Bureau shall have no authority to exercise any power to enforce this title 1 with respect to a person regulated by the Commission.
Notwithstanding paragraph (1), the Commission shall consult and coordinate, where feasible, with the Bureau with respect to any rule (including any advance notice of proposed rulemaking) regarding 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 Bureau under this title 1 or under any other law. In carrying out this paragraph, the agencies shall negotiate an agreement to establish procedures for such coordination, including procedures for providing advance notice to the Bureau when the Commission is initiating a rulemaking.
No provision of this title 1 shall be construed as altering, amending, or affecting the authority of the Commodity Futures Trading Commission to adopt rules, initiate enforcement proceedings, or take any other action with respect to a person regulated by the Commodity Futures Trading Commission*. The Bureau shall have no authority to exercise any power to enforce this title 1 with respect to a person regulated by the Commodity Futures Trading Commission.
Notwithstanding paragraph (1), the Commodity Futures Trading Commission shall consult and coordinate with the Bureau with respect to any rule (including any advance notice of proposed rulemaking) regarding a 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 Bureau under this title 1 or under any other law.
No provision of this title 1 shall be construed as altering, amending, or affecting the authority of the Farm Credit Administration to adopt rules, initiate enforcement proceedings, or take any other action with respect to a person regulated by the Farm Credit Administration. The Bureau shall have no authority to exercise any power to enforce this title 1 with respect to a person regulated by the Farm Credit Administration.
For purposes of this subsection, the term “person regulated by the Farm Credit Administration” means any Farm Credit System institution that is chartered and subject to the provisions of the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.).
The Director and the Bureau may not exercise any rulemaking, supervisory, enforcement, or other authority, including authority to order penalties, over any activities related to the solicitation or making of voluntary contributions to a tax-exempt organization as recognized by the Internal Revenue Service, by any agent, volunteer, or representative of such organizations to the extent the organization, agent, volunteer, or representative thereof is soliciting or providing advice, information, education, or instruction to any donor or potential donor relating to a contribution to the organization.
The exclusion in paragraph (1) does not apply to other activities not described in paragraph (1) that are the offering or provision of any consumer financial product or service, or are otherwise subject to any enumerated consumer law or any law for which authorities are transferred under subtitle F or H.
The Bureau may not define as a financial product or service, by regulation or otherwise, engaging in the business of insurance*.
Notwithstanding subsections (a) through (h) and (l), a person subject to or described in one or more of such provisions—
may be a service provider*; and
may be subject to requests from, or requirements imposed by, the Bureau regarding information in order to carry out the responsibilities and functions of the Bureau and in accordance with section 5512, 5562, or 5563 of this title.
No provision of this title 1 shall be construed as conferring authority on the Bureau to establish a usury limit applicable to an extension of credit offered or made by a covered person* to a consumer, unless explicitly authorized by law.
No provision of this title,1 including section 5514(c)(1) of this title, shall affect the authorities of the Attorney General under otherwise applicable provisions of law.
No provision of this title 1 shall affect the authorities of the Secretary, including with respect to prescribing rules, initiating enforcement proceedings, or taking other actions with respect to a person that performs income tax preparation activities for consumers*.
Nothing in this title 1 shall affect the authority of the Corporation under the Federal Deposit Insurance Act [12 U.S.C. 1811 et seq.] or the National Credit Union Administration Board under the Federal Credit Union Act [12 U.S.C. 1751 et seq.] as to matters related to deposit insurance and share insurance, respectively.
No provision of this title 1 shall be construed as affecting any authority arising under the Fair Housing Act [42 U.S.C. 3601 et seq.].
Source credit: (Pub. L. 111–203, title X, § 1027, July 21, 2010, 124 Stat. 1995; Pub. L. 113–295, div. B, title I, § 102(e)(7), Dec. 19, 2014, 128 Stat. 4062.)
- 2010Enacted · Pub. L. 111-203 · 124 Stat. 1995
- 2014Amended · Pub. L. 113-295 · 128 Stat. 4062
A history note hasn’t been published yet. The record shows enactment by Pub. L. 111-203 on 2010-07-21.
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