§1679h — Title 15 Commerce and Trade | U.S. Code

Summary

The Federal Trade Commission (FTC) enforces the rules about credit repair companies. If a credit repair company breaks these rules, the FTC treats that as an unfair or deceptive business practice under section 5(a) of the FTC Act. The FTC can use all its usual enforcement tools and can act as if the company broke any FTC trade rule, even if the company is not clearly in interstate commerce or fails other FTC jurisdiction tests. State chief law officers or agencies can also sue to stop violations, recover money for their residents under section 1679g, and get court costs and lawyer fees if they win. A State must give the FTC written notice and a copy of its complaint before suing, unless that is not possible, in which case it must notify the FTC right away. The FTC may join, speak in, and appeal those cases. If the FTC already sued someone, a State cannot sue that same defendant for the same alleged violation while the FTC’s case is pending.

Title 15, §1679h

Commerce and Trade — Source: USLM XML via OLRC

(a)Compliance with the requirements imposed under this subchapter with respect to credit repair organizations shall be enforced under the Federal Trade Commission Act [15 U.S.C. 41 et seq.] by the Federal Trade Commission.

(b)(1)For the purpose of the exercise by the Federal Trade Commission of the Commission’s functions and powers under the Federal Trade Commission Act [15 U.S.C. 41 et seq.], any violation of any requirement or prohibition imposed under this subchapter with respect to credit repair organizations 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)].

(2)All functions and powers of the Federal Trade Commission under the Federal Trade Commission Act shall be available to the Commission to enforce compliance with this subchapter by any person subject to enforcement by the Federal Trade Commission pursuant to this subsection, including the power to enforce the provisions of this subchapter in the same manner as if the violation had been a violation of any Federal Trade Commission trade regulation rule, without regard to whether the credit repair organization—

(A)is engaged in commerce; or

(B)meets any other jurisdictional tests in the Federal Trade Commission Act.

(c)(1)In addition to such other remedies as are provided under State law, whenever 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 subchapter, the State—

(A)may bring an action to enjoin such violation;

(B)may bring an action on behalf of its residents to recover damages for which the person is liable to such residents under section 1679g of this title as a result of the 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)(A)The State shall serve prior written notice of any civil action under paragraph (1) upon the Federal Trade Commission and provide the Commission with a copy of its complaint, except in any case where such prior notice is not feasible, in which case the State shall serve such notice immediately upon instituting such action.

(B)The Commission shall have the right—

(i)to intervene in any action referred to in subparagraph (A);

(ii)upon so intervening, to be heard on all matters arising in the action; and

(iii)to file petitions for appeal.

(3)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)Whenever the Federal Trade Commission has instituted a civil action for violation of this subchapter, 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 for any violation of this subchapter that is alleged in that complaint.

Notes & Related Subsidiaries

Editorial Notes

References in Text

The Federal Trade Commission Act, referred to in subsecs. (a) and (b), is act Sept. 26, 1914, ch. 311, 38 Stat. 717, which is classified generally to subchapter I (§ 41 et seq.) of chapter 2 of this title. For complete classification of this Act to the Code, see section 58 of this title and Tables.

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable after the end of the 6-month period beginning on Sept. 30, 1996, except with respect to contracts entered into by a credit repair organization before the end of such period, see section 413 of Pub. L. 90–321, as added by Pub. L. 104–208, set out as a note under section 1679 of this title.

§1679h Administrative enforcement