PRIA, Government Policy, Made Personal

Summary

Allows a consumer to sue if someone breaks the rules in this part. If the consumer wins, they can get any actual money lost plus extra damages. In an individual case the extra amount must be at least $100 and no more than $1,000. In a class action the court decides the extra amount, but there is no minimum per person and the total award for everyone together cannot be more than the lesser of $500,000 or 1% of the defendant’s net worth. The winner can also get court costs and a reasonable lawyer’s fee. When deciding how much to award, the court looks at how often and how seriously the rule was broken and whether it was intentional. For class cases the court also looks at the number of people hurt and the defendant’s resources. A defendant is not liable if they can prove the error was not intentional, was a genuine mistake, and they had reasonable procedures to prevent it. No liability applies for acts done in good faith under official rules or model clauses. If the problem is fixed, the consumer warned, and damages paid before a suit starts, there is no liability. Bad‑faith lawsuits brought to harass can make the loser pay the defendant’s lawyer fees. A suit must be filed in the proper court within one year from the violation.

Title 15, §1693m

Commerce and Trade, Source: USLM XML via OLRC

(a)Individual or class action for damages; amount of award

Except as otherwise provided by this section and section 1693h of this title, any person who fails to comply with any provision of this subchapter with respect to any consumer, except for an error resolved in accordance with section 1693f of this title, is liable to such consumer in an amount equal to the sum of— (1)

(2)(A)in the case of an individual action, an amount not less than $100 nor greater than $1,000; or

(B)in the case of a class action, such amount as the court may allow, except that (i) as to each member of the class no minimum recovery shall be applicable, and (ii) the total recovery under this subparagraph in any class action or series of class actions arising out of the same failure to comply by the same person shall not be more than the lesser of $500,000 or 1 per centum of the net worth of the defendant; and

(3)in the case of any successful action to enforce the foregoing liability, the costs of the action, together with a reasonable attorney’s fee as determined by the court.

(b)Factors determining amount of award

In determining the amount of liability in any action under subsection (a), the court shall consider, among other relevant factors—

(1)in any individual action under subsection (a)(2)(A), the frequency and persistence of noncompliance, the nature of such noncompliance, and the extent to which the noncompliance was intentional; or

(2)in any class action under subsection (a)(2)(B), the frequency and persistence of noncompliance, the nature of such noncompliance, the resources of the defendant, the number of persons adversely affected, and the extent to which the noncompliance was intentional.

(c)Unintentional violations; bona fide error (d) Good faith compliance with rule, regulation, or interpretation

Except as provided in section 1693h of this title, a person may not be held liable in any action brought under this section for a violation of this subchapter if the person shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid any such error.

(e)Notification to consumer prior to action; adjustment of consumer’s account

A person has no liability under this section for any failure to comply with any requirement under this subchapter if, prior to the institution of an action under this section, the person notifies the consumer concerned of the failure, complies with the requirements of this subchapter, and makes an appropriate adjustment to the consumer’s account and pays actual damages or, where applicable, damages in accordance with section 1693h of this title.

(f)Action in bad faith or for harassment; attorney’s fees

On a finding by the court that an unsuccessful action under this section was brought in bad faith or for purposes of harassment, the court shall award to the defendant attorney’s fees reasonable in relation to the work expended and costs.

(g)Jurisdiction of courts; time for maintenance of action

Without regard to the amount in controversy, any action under this section may be brought in any United States district court, or in any other court of competent jurisdiction, within one year from the date of the occurrence of the violation.

Notes & Related Subsidiaries

Editorial Notes

References in Text

section 1693n of this title, referred to in subsec. (d), was in the original a reference to section 916 of Pub. L. 90–321, and was translated as meaning section 917 of Pub. L. 90–321 to reflect the probable intent of Congress and the renumbering of section 916 of Pub. L. 90–321 as section 917 by Pub. L. 111–24, title IV, § 401(1), May 22, 2009, 123 Stat. 1751.

Prior Provisions

A prior section 916 of Pub. L. 90–321 was renumbered section 917 and is classified to section 1693n of this title.

Amendments

2010—Pub. L. 111–203, § 1084(1), which directed the substitution of “Bureau” for “Board” wherever appearing in section, was not executed in subsec. (d), which was the only place such term appeared, to reflect the probable intent of Congress and the amendment by Pub. L. 111–203, § 1084(4). See below. Subsec. (d). Pub. L. 111–203, § 1084(4), struck out “of Board or approval of duly authorized official or employee of Federal Reserve System” after “interpretation” in heading that had been supplied editorially and inserted “Bureau of Consumer Financial Protection or the” before “Federal Reserve System” in par. (1) and “Bureau or the” before “Board” wherever appearing.

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.

§1693m Civil Liability