PRIA, Government Policy, Made Personal

Summary

Federal rules in this title do not cancel or change state laws unless a state law conflicts with this title. If there is a conflict, the federal rule only overrides the state law as far as it conflicts. This rule does not apply to sections 1044 through 1048. If a state law gives consumers stronger protection than this title, that state law still stands and is not treated as a conflict. The Bureau can decide on conflicts on its own or after a nonfrivolous petition from anyone affected. Except for section 1083, nothing here changes how other listed federal consumer laws work with state law. If a majority of the States ask the Bureau to make or change a consumer protection rule, the Bureau must publish a proposed rule. Before making a final rule from that proposal, the Bureau must consider three things: whether it gives more consumer protection than current rules; whether the benefits for consumers outweigh any extra cost or inconvenience and do not unfairly harm any group; and whether a federal banking agency says it would pose an unacceptable safety and soundness risk to insured depository institutions. The Bureau must explain these points in the Federal Register for any final rule, and must publish and send an explanation if it decides not to make the rule. The Bureau keeps authority to act on its own or at others’ requests and must follow subchapter II of chapter 5 of title 5. "Consumer protection regulation" means a rule the Bureau can make under the Federal consumer financial laws.

Title 12, §5551

Banks and Banking, Source: USLM XML via OLRC

(a)In general

(1)Rule of construction

This title, other than sections 1044 through 1048, may not be construed as annulling, altering, or affecting, or exempting any person subject to the provisions of this title from complying with, the statutes, regulations, orders, or interpretations in effect in any State, except to the extent that any such provision of law is inconsistent with the provisions of this title, and then only to the extent of the inconsistency.

(2)Greater protection under State law

For purposes of this subsection, a statute, regulation, order, or interpretation in effect in any State is not inconsistent with the provisions of this title 1 if the protection that such statute, regulation, order, or interpretation affords to consumers is greater than the protection provided under this title.1 A determination regarding whether a statute, regulation, order, or interpretation in effect in any State is inconsistent with the provisions of this title 1 may be made by the Bureau on its own motion or in response to a nonfrivolous petition initiated by any interested person.

(b)Relation to other provisions of enumerated consumer laws that relate to State law

No provision of this title,1 except as provided in section 1083,1 shall be construed as modifying, limiting, or superseding the operation of any provision of an enumerated consumer law that relates to the application of a law in effect in any State with respect to such Federal law.

(c)Additional consumer protection regulations in response to State action

(1)Notice of proposed rule required

The Bureau shall issue a notice of proposed rulemaking whenever a majority of the States has enacted a resolution in support of the establishment or modification of a consumer protection regulation by the Bureau.

(2)Bureau considerations required for issuance of final regulation

Before prescribing a final regulation based upon a notice issued pursuant to paragraph (1), the Bureau shall take into account whether—

(A)the proposed regulation would afford greater protection to consumers than any existing regulation;

(B)the intended benefits of the proposed regulation for consumers would outweigh any increased costs or inconveniences for consumers, and would not discriminate unfairly against any category or class of consumers; and

(C)a Federal banking agency has advised that the proposed regulation is likely to present an unacceptable safety and soundness risk to insured depository institutions.

(3)Explanation of considerations

The Bureau—

(A)shall include a discussion of the considerations required in paragraph (2) in the Federal Register notice of a final regulation prescribed pursuant to this subsection; and

(B)whenever the Bureau determines not to prescribe a final regulation, shall publish an explanation of such determination in the Federal Register, and provide a copy of such explanation to each State that enacted a resolution in support of the proposed regulation, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Committee on Financial Services of the House of Representatives.

(4)Reservation of authority

No provision of this subsection shall be construed as limiting or restricting the authority of the Bureau to enhance consumer protection standards established pursuant to this title 1 in response to its own motion or in response to a request by any other interested person.

(5)Rule of construction

No provision of this subsection shall be construed as exempting the Bureau from complying with subchapter II of chapter 5 of title 5.

(6)Definition

For purposes of this subsection, the term “consumer protection regulation” means a regulation that the Bureau is authorized to prescribe under the Federal consumer financial laws.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This title, referred to in subsecs. (a), (b), and (c)(4), is title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955, known as the Consumer Financial Protection Act of 2010, which enacted this subchapter and enacted, amended, and repealed numerous other sections and notes in the Code. For complete classification of title X to the Code, see

Short Title

note set out under section 5301 of this title and Tables. Sections 1044 through 1048, referred to in subsec. (a)(1), are sections 1044 to 1048 of Pub. L. 111–203, which enacted and amended section 25b and 1465 of this title and enacted provisions set out as a note below. section 1083, referred to in subsec. (b), is section 1083 of Pub. L. 111–203, which amended section 3802 and 3803 of this title and enacted provisions set out as notes under section 3802 of this title.

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 111–203, title X, § 1048, July 21, 2010, 124 Stat. 2018, provided that: “This subtitle [subtitle D (§§ 1041–1048) of title X of Pub. L. 111–203, enacting this part and enacting and amending section 25b and 1465 of this title] shall become effective on the designated transfer date.” [The term “designated transfer date” is defined in section 5481(9) of this title as the date established under section 5582 of this title.]

§5551 Relation to State Law