15 U.S.C. § 1679g: Civil liability

Summary

Anyone who breaks the rules in this subchapter must pay the person they harmed. The payment must be at least the bigger of the person’s actual loss or any money the person paid to the credit repair organization. The court can also order extra punitive payments to punish wrongdoing. In a case by one person, the court sets the extra amount. In a class action, the court adds amounts for the named plaintiffs and for the other class members. A person who wins can also get court costs and reasonable lawyer fees. When deciding how much extra to award against a credit repair organization, the court will look at how often the violations happened, what kind of violations they were, whether they were intentional, and, in class cases, how many people were hurt.

Title 15, §1679g

Commerce and Trade, Source: USLM XML via OLRC

(a)Liability established

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) Actual damages

(2)Punitive damages

(A)Individual actions

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

(B)Class actions

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

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

(3)Attorneys’ fees

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)Factors to be considered in awarding punitive damages

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