Title 15 — Commerce and TradeRelease 119-73
§1691c–1 Incentives for self-testing and self-correction
Title 15 › Chapter CHAPTER 41— - CONSUMER CREDIT PROTECTION › Subchapter SUBCHAPTER IV— - EQUAL CREDIT OPPORTUNITY › § 1691c–1
Summary
Protects reports from internal reviews so they can’t be used against a lender. If a lender does, or hires an independent party to do, a self-test (a review the Bureau defines) to check how well it follows the rules, and it finds possible problems and is taking steps to fix them, the test report is private. Borrowers, government agencies, or examiners may not get or use that report in lawsuits, investigations, or compliance exams. There are limits. The report can be used if the lender or someone with lawful access shares it with the public or an agency, or uses it as a defense. It can also be used when the lender admits or is found to have broken the rules, but only to decide the penalty and only in that case. Anyone who disputes the claim of privacy can ask a court or an appropriate administrative hearing to decide.
Full Legal Text
Title 15, §1691c–1
Commerce and Trade — Source: USLM XML via OLRC
(a)(1)A report or result of a self-test (as that term is defined by regulations of the Bureau) shall be considered to be privileged under paragraph (2) if a creditor—
(A)conducts, or authorizes an independent third party to conduct, a self-test of any aspect of a credit transaction by a creditor, in order to determine the level or effectiveness of compliance with this subchapter by the creditor; and
(B)has identified any possible violation of this subchapter by the creditor and has taken, or is taking, appropriate corrective action to address any such possible violation.
(2)If a creditor meets the conditions specified in subparagraphs (A) and (B) of paragraph (1) with respect to a self-test described in that paragraph, any report or results of that self-test—
(A)shall be privileged; and
(B)may not be obtained or used by any applicant, department, or agency in any—
(i)proceeding or civil action in which one or more violations of this subchapter are alleged; or
(ii)examination or investigation relating to compliance with this subchapter.
(b)(1)No provision of this section may be construed to prevent an applicant, department, or agency from obtaining or using a report or results of any self-test in any proceeding or civil action in which a violation of this subchapter is alleged, or in any examination or investigation of compliance with this subchapter if—
(A)the creditor or any person with lawful access to the report or results—
(i)voluntarily releases or discloses all, or any part of, the report or results to the applicant, department, or agency, or to the general public; or
(ii)refers to or describes the report or results as a defense to charges of violations of this subchapter against the creditor to whom the self-test relates; or
(B)the report or results are sought in conjunction with an adjudication or admission of a violation of this subchapter for the sole purpose of determining an appropriate penalty or remedy.
(2)Any report or results of a self-test that are disclosed for the purpose specified in paragraph (1)(B)—
(A)shall be used only for the particular proceeding in which the adjudication or admission referred to in paragraph (1)(B) is made; and
(B)may not be used in any other action or proceeding.
(c)An applicant, department, or agency that challenges a privilege asserted under this section may seek a determination of the existence and application of that privilege in—
(1)a court of competent jurisdiction; or
(2)an administrative law proceeding with appropriate jurisdiction.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Amendments
2010—Subsec. (a)(1). Pub. L. 111–203 substituted “Bureau” for “Board” in introductory provisions.
Statutory Notes and Related Subsidiaries
Effective Date
of 2010 AmendmentAmendment by Pub. L. 111–203 effective on the designated transfer date, see section 1100H of Pub. L. 111–203, set out as a note under section 552a of Title 5, Government Organization and Employees.
Effective Date
Pub. L. 104–208, div. A, title II, § 2302(c), Sept. 30, 1996, 110 Stat. 3009–423, provided that: “(1) In general.—Except as provided in paragraph (2), the privilege provided for in section 704A of the Equal Credit Opportunity Act [15 U.S.C. 1691c–1] or section 814A of the Fair Housing Act [42 U.S.C. 3614–1] (as those sections are added by this section) shall apply to a self-test (as that term is defined pursuant to the
Regulations
prescribed under subsection (a)(2) [set out below] or (b)(2) of this section [42 U.S.C. 3614–1 note], as appropriate) conducted before, on, or after the
Effective Date
of the
Regulations
prescribed under subsection (a)(2) or (b)(2), as appropriate. “(2) Exception.—The privilege referred to in paragraph (1) does not apply to such a self-test conducted before the
Effective Date
of the
Regulations
prescribed under subsection (a) or (b), as appropriate, if—“(A) before that
Effective Date
, a complaint against the creditor or person engaged in residential real estate related lending activities (as the case may be) was—“(i) formally filed in any court of competent jurisdiction; or “(ii) the subject of an ongoing administrative law proceeding; “(B) in the case of section 704A of the Equal Credit Opportunity Act, the creditor has waived the privilege pursuant to subsection (b)(1)(A)(i) of that section; or “(C) in the case of section 814A of the Fair Housing Act, the person engaged in residential real estate related lending activities has waived the privilege pursuant to subsection (b)(1)(A)(i) of that section.”
Regulations
Pub. L. 104–208, div. A, title II, § 2302(a)(2), Sept. 30, 1996, 110 Stat. 3009–421, provided that: “(A) In general.—Not later than 6 months after the date of enactment of this Act [Sept. 30, 1996], in consultation with the Secretary of Housing and Urban Development and the agencies referred to in section 704 of the Equal Credit Opportunity Act [15 U.S.C. 1691c], and after providing notice and an opportunity for public comment, the Board shall prescribe final
Regulations
to implement section 704A of the Equal Credit Opportunity Act [15 U.S.C. 1691c–1], as added by this section. “(B) Self-test.—“(i) Definition.—The
Regulations
prescribed under subparagraph (A) shall include a definition of the term ‘self-test’ for purposes of section 704A of the Equal Credit Opportunity Act, as added by this section. “(ii) Requirement for self-test.—The
Regulations
prescribed under subparagraph (A) shall specify that a self-test shall be sufficiently extensive to constitute a determination of the level and effectiveness of compliance by a creditor with the Equal Credit Opportunity Act [15 U.S.C. 1691 et seq.]. “(iii) Substantial similarity to certain fair housing act
Regulations
.—The
Regulations
prescribed under subparagraph (A) shall be substantially similar to the
Regulations
prescribed by the Secretary of Housing and Urban Development to carry out section 814A(d) of the Fair Housing Act [42 U.S.C. 3614–1(d)], as added by this section.”
Reference
Citations & Metadata
Citation
15 U.S.C. § 1691c–1
Title 15 — Commerce and Trade
Last Updated
Apr 6, 2026
Release point: 119-73