12 U.S.C. § 5564: Litigation authority

Summary

The Bureau can sue anyone who breaks a Federal consumer financial law, subject to sections 5514, 5515, and 5516, to get fines or other court-ordered relief like temporary or permanent injunctions. The Bureau can act in its own name and use its own lawyers. It can settle cases if a court approves the settlement. When it starts a civil case, the Bureau must tell the Attorney General, and it must also notify the proper federal regulator when the case is against an insured bank or insured credit union. The Bureau must also notify the Attorney General about other cases it is in, except cases about offering or providing consumer financial products or services. The Attorney General and the Bureau must meet and make a coordination agreement within 180 days after the designated transfer date so investigations and lawsuits do not conflict and so the Attorney General can still pursue criminal charges. This does not limit the Bureau’s authority, including its power to interpret consumer financial law. The Bureau may represent itself before the Supreme Court if it asks the Attorney General in writing within the 10-day period that begins when the judgment is entered that would allow a petition for certiorari, and the Attorney General agrees or does not act within 60 days. Lawsuits can be filed in a U.S. district court or a state court in the district where the defendant lives, is located, or does business, and those courts can order injunctions and require compliance. Generally, the Bureau must start an action within 3 years after the violation is discovered, unless another law or equity allows more time. If a claim arises only under certain listed consumer laws or under laws moved under subtitles F and H, the Bureau’s role follows the rules in those specific laws.

Title 12, §5564

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(a)In general

If any person violates a Federal consumer financial law, the Bureau may, subject to section 5514, 5515, and 5516 of this title, commence a civil action against such person to impose a civil penalty or to seek all appropriate legal and equitable relief including a permanent or temporary injunction as permitted by law.

(b)Representation

The Bureau may act in its own name and through its own attorneys in enforcing any provision of this title, rules thereunder, or any other law or regulation, or in any action, suit, or proceeding to which the Bureau is a party.

(c)Compromise of actions

The Bureau may compromise or settle any action if such compromise is approved by the court.

(d)Notice to the Attorney General

(1)In general

When commencing a civil action under Federal consumer financial law, or any rule thereunder, the Bureau shall notify the Attorney General and, with respect to a civil action against an insured depository institution or insured credit union, the appropriate prudential regulator.

(2)Notice and coordination

(A)Notice of other actions

In addition to any notice required under paragraph (1), the Bureau shall notify the Attorney General concerning any action, suit, or proceeding to which the Bureau is a party, except an action, suit, or proceeding that involves the offering or provision of consumer financial products or services.

(B)Coordination

In order to avoid conflicts and promote consistency regarding litigation of matters under Federal law, the Attorney General and the Bureau shall consult regarding the coordination of investigations and proceedings, including by negotiating an agreement for coordination by not later than 180 days after the designated transfer date. The agreement under this subparagraph shall include provisions to ensure that parallel investigations and proceedings involving the Federal consumer financial laws are conducted in a manner that avoids conflicts and does not impede the ability of the Attorney General to prosecute violations of Federal criminal laws.

(C)Rule of construction

Nothing in this paragraph shall be construed to limit the authority of the Bureau under this title,1 including the authority to interpret Federal consumer financial law.

(e)Appearance before the Supreme Court

The Bureau may represent itself in its own name before the Supreme Court of the United States, provided that the Bureau makes a written request to the Attorney General within the 10-day period which begins on the date of entry of the judgment which would permit any party to file a petition for writ of certiorari, and the Attorney General concurs with such request or fails to take action within 60 days of the request of the Bureau.

(f)Forum

Any civil action brought under this title 1 may be brought in a United States district court or in any court of competent jurisdiction of a state in a district in which the defendant is located or resides or is doing business, and such court shall have jurisdiction to enjoin such person and to require compliance with any Federal consumer financial law.

(g)Time for bringing action

(1)In general

Except as otherwise permitted by law or equity, no action may be brought under this title 1 more than 3 years after the date of discovery of the violation to which an action relates.

(2)Limitations under other Federal laws

(A)In general

An action arising under this title 1 does not include claims arising solely under enumerated consumer laws.

(B)Bureau authority

In any action arising solely under an enumerated consumer law, the Bureau may commence, defend, or intervene in the action in accordance with the requirements of that provision of law, as applicable.

(C)Transferred authority

In any action arising solely under laws for which authorities were transferred under subtitles F and H, the Bureau may commence, defend, or intervene in the action in accordance with the requirements of that provision of law, as applicable.

Notes & Related Subsidiaries

Editorial Notes

References in Text

This title, referred to in subsecs. (b), (d)(2)(C), (f), and (g)(1), (2)(A), 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. Subtitle F, referred to in subsec. (g)(2)(C), is subtitle F (§§ 1061–1067) of title X of Pub. L. 111–203,

July 21, 2010, 124 Stat. 2035, which is classified generally to part F (§ 5581 et seq.) of this subchapter. For complete classification of subtitle F to the Code, see Tables. Subtitle H, referred to in subsec. (g)(2)(C), is subtitle H (§§ 1081–1100H) of title X of Pub. L. 111–203,

July 21, 2010, 124 Stat. 2080. For complete classification of subtitle H to the Code, see Tables.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective on the designated transfer date, see section 1058 of Pub. L. 111–203, set out as a note under section 5561 of this title.

§5564 Litigation Authority