12 U.S.C. § 5565 — Relief available
submitted 16 years ago by Pub. L. 111-203 to r/title-12-BANKS-AND-BANKING · 609 words · no verdicts yet
A court or the Bureau may award legal or equitable relief for a Federal consumer financial law violation, including refunds, restitution, damages, limits on activity, and civil penalties. The section sets penalty tiers, factors for setting penalties, and notice and hearing requirements.
(a)(1) Jurisdiction. In an action or administrative proceeding under Federal consumer financial law*, the court or Bureau* has jurisdiction to grant appropriate legal or equitable relief for a violation of that law, including a rule or order under it. (2) Relief may include (A) canceling or changing contracts, (B) refunding money or returning real property, (C) restitution, (D) giving up unjust enrichment or paying compensation for it, (E) damages or other money relief, (F) public notice of the violation and notice costs, (G) limits on the person’s activities or functions, and (H) civil money penalties under (c). (3) This subsection does not authorize exemplary or punitive damages. (b) In an action brought to enforce a Federal consumer* financial law by the Bureau, a State* attorney general, or a State regulator, that enforcing party may recover its prosecution costs if it wins. (c)(1) A person* violating Federal consumer financial law by an act or omission must forfeit and pay a civil penalty. (2)(A) First tier: for violating a law, rule, final order, or written Bureau condition, up to $5,000 for each day the violation or failure to pay continues. (B) Second tier: if the person recklessly violates Federal consumer financial law, up to $25,000 for each day the violation continues. (C) Third tier: if the person knowingly violates it, up to $1,000,000 for each day the violation continues. (3) The Bureau or court must consider the appropriateness of the penalty in light of (A) the charged person’s financial resources and good faith, (B) seriousness of the violation or failure to pay, (C) seriousness of consumer risks or losses, including possibly the number of products or services sold or provided, (D) prior violations, and (E) other matters justice requires. (4) The Bureau may compromise, change, or forgive a penalty assessed or assessable under (2). The final penalty does not include proceeding costs and may be deducted from money the United States owes the charged person. (5) No penalty may be assessed unless (A) the Bureau gives notice and a hearing opportunity, or (B) the appropriate court orders the assessment and enters judgment for the Bureau.
The court (or the Bureau*, as the case may be) in an action or adjudication proceeding brought under Federal consumer financial law*, shall have jurisdiction to grant any appropriate legal or equitable relief with respect to a violation of Federal consumer* financial law, including a violation of a rule or order prescribed under a Federal consumer financial law.
Relief under this section may include, without limitation—
rescission or reformation of contracts;
refund of moneys or return of real property;
restitution;
disgorgement or compensation for unjust enrichment;
payment of damages or other monetary relief;
public notification regarding the violation, including the costs of notification;
limits on the activities or functions of the person*; and
civil money penalties, as set forth more fully in subsection (c).
Nothing in this subsection shall be construed as authorizing the imposition of exemplary or punitive damages.
In any action brought by the Bureau, a State* attorney general, or any State regulator to enforce any Federal consumer financial law, the Bureau, the State attorney general, or the State regulator may recover its costs in connection with prosecuting such action if the Bureau, the State attorney general, or the State regulator is the prevailing party in the action.
Any person that violates, through any act or omission, any provision of Federal consumer financial law shall forfeit and pay a civil penalty pursuant to this subsection.
For any violation of a law, rule, or final order or condition imposed in writing by the Bureau, a civil penalty may not exceed $5,000 for each day during which such violation or failure to pay continues.
Notwithstanding paragraph (A), for any person that recklessly engages in a violation of a Federal consumer financial law, a civil penalty may not exceed $25,000 for each day during which such violation continues.
Notwithstanding subparagraphs (A) and (B), for any person that knowingly violates a Federal consumer financial law, a civil penalty may not exceed $1,000,000 for each day during which such violation continues.
In determining the amount of any penalty assessed under paragraph (2), the Bureau or the court shall take into account the appropriateness of the penalty with respect to—
the size of financial resources and good faith of the person charged;
the gravity of the violation or failure to pay;
the severity of the risks to or losses of the consumer, which may take into account the number of products or services sold or provided;
the history of previous violations; and
such other matters as justice may require.
The Bureau may compromise, modify, or remit any penalty which may be assessed or had already been assessed under paragraph (2). The amount of such penalty, when finally determined, shall be exclusive of any sums owed by the person to the United States in connection with the costs of the proceeding, and may be deducted from any sums owing by the United States to the person charged.
No civil penalty may be assessed under this subsection with respect to a violation of any Federal consumer financial law, unless—
the Bureau gives notice and an opportunity for a hearing to the person accused of the violation; or
the appropriate court has ordered such assessment and entered judgment in favor of the Bureau.
Source credit: (Pub. L. 111–203, title X, § 1055, July 21, 2010, 124 Stat. 2029.)
- 2010Enacted · Pub. L. 111-203 · 124 Stat. 2029
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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