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

Summary

If someone breaks the credit repair rules and another person is hurt, the breaker must pay the harmed person. The payment has three parts: first, the larger of either the actual harm the person suffered or any money the person paid the credit repair company; second, extra money the court decides to award (handled one way for individual cases and another way for class actions); and third, the winner’s court costs and reasonable lawyer fees. When the court decides the extra money amount, it must consider four things: how often the company broke the rules, what kind of rule-breaking it was, whether it was intentional, and, in class actions, how many people were harmed.

Title 15, §1679g

Commerce and Trade — Source: USLM XML via OLRC

(a)Any person who fails to comply with any provision of this subchapter with respect to any other person shall be liable to such person in an amount equal to the sum of the amounts determined under each of the following paragraphs:

(1)The greater of—

(A)the amount of any actual damage sustained by such person as a result of such failure; or

(B)any amount paid by the person to the credit repair organization.

(2)(A)In the case of any action by an individual, such additional amount as the court may allow.

(B)In the case of a class action, the sum of—

(i)the aggregate of the amount which the court may allow for each named plaintiff; and

(ii)the aggregate of the amount which the court may allow for each other class member, without regard to any minimum individual recovery.

(3)In the case of any successful action to enforce any liability under paragraph (1) or (2), the costs of the action, together with reasonable attorneys’ fees.

(b)In determining the amount of any liability of any credit repair organization under subsection (a)(2), the court shall consider, among other relevant factors—

(1)the frequency and persistence of noncompliance by the credit repair organization;

(2)the nature of the noncompliance;

(3)the extent to which such noncompliance was intentional; and

(4)in the case of any class action, the number of consumers adversely affected.

Notes & Related Subsidiaries

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.

§1679g Civil Liability

Summary

Title 15, §1679g

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Effective Date

Citations & Metadata