§3417 — Title 12 Banks and Banking | U.S. Code

Summary

Allows a customer to get money if a U.S. agency or a bank gets or shares their financial records in violation of the law. The customer can get $100 no matter how many records were involved, any actual money they lost, extra punitive damages if the court finds the violation was willful, and the court can order the agency to pay the lawsuit costs and reasonable lawyer fees. If a federal agency’s actions raise questions about an employee acting willfully, the Director of the Office of Personnel Management must quickly investigate and tell the agency what discipline is needed. A bank or its worker who disclosed records in good faith because they relied on a government certificate or the rule in section 3413(l) is not liable to the customer under this federal law or state law. The remedies listed here are the only court remedies allowed for violations.

Title 12, §3417

Banks and Banking — Source: USLM XML via OLRC

(a)Any agency or department of the United States or financial institution obtaining or disclosing financial records or information contained therein in violation of this chapter is liable to the customer to whom such records relate in an amount equal to the sum of—

(1)$100 without regard to the volume of records involved;

(2)any actual damages sustained by the customer as a result of the disclosure;

(3)such punitive damages as the court may allow, where the violation is found to have been willful or intentional; and

(4)in the case of any successful action to enforce liability under this section, the costs of the action together with reasonable attorney’s fees as determined by the court.

(b)Whenever the court determines that any agency or department of the United States has violated any provision of this chapter and the court finds that the circumstances surrounding the violation raise questions of whether an officer or employee of the department or agency acted willfully or intentionally with respect to the violation, the Director of the Office of Personnel Management shall promptly initiate a proceeding to determine whether disciplinary action is warranted against the agent or employee who was primarily responsible for the violation. The Director after investigation and consideration of the evidence submitted, shall submit his findings and recommendations to the administrative authority of the agency concerned and shall send copies of the findings and recommendations to the officer or employee or his representative. The administrative authority shall take the corrective action that the Director recommends.

(c)Any financial institution or agent or employee thereof making a disclosure of financial records pursuant to this chapter in good-faith reliance upon a certificate by any Government authority or pursuant to the provisions of section 3413(l) of this title shall not be liable to the customer for such disclosure under this chapter, the constitution of any State, or any law or regulation of any State or any political subdivision of any State.

(d)The remedies and sanctions described in this chapter shall be the only authorized judicial remedies and sanctions for violations of this chapter.

Notes & Related Subsidiaries

Editorial Notes

Amendments

1988—Subsec. (c). Pub. L. 100–690 inserted “or pursuant to the provisions of section 3413(l) of this title” after “Government authority” and “under this chapter, the constitution of any State, or any law or regulation of any State or any political subdivision of any State” after “such disclosure”.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective upon the expiration of 120 days after Nov. 10, 1978, see section 2101 of Pub. L. 95–630, set out as a note under section 375b of this title.

Executive Documents

Transfer of Functions

“Director of the Office of Personnel Management” and “Director” substituted in subsec. (b) for “Civil Service Commission” and “Commission” pursuant to Reorg. Plan No. 2 of 1978, § 102, 43 F.R. 36037, 92 Stat. 3783, set out under section 1101 of Title 5, Government Organization and Employees, which transferred functions vested by statute in Civil Service Commission to Director of Office of Personnel Management (except as otherwise specified), effective Jan. 1, 1979, as provided by section 1–102 of Ex. Ord. No. 12107, Dec. 28, 1978, 44 F.R. 1055, set out under section 1101 of Title 5.

§3417 Civil penalties