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U.S. Code as of:
01/19/04
Section 1691c-1. Incentives for self-testing and self-correction
(a) Privileged information
(1) Conditions for privilege
A report or result of a self-test (as that term is defined by
regulations of the Board) shall be considered to be privileged
under paragraph (2) if a creditor -
(A) conducts, or authorizes an independent third party to
conduct, a self-test of any aspect of a credit transaction by a
creditor, in order to determine the level or effectiveness of
compliance with this subchapter by the creditor; and
(B) has identified any possible violation of this subchapter
by the creditor and has taken, or is taking, appropriate
corrective action to address any such possible violation.
(2) Privileged self-test
If a creditor meets the conditions specified in subparagraphs
(A) and (B) of paragraph (1) with respect to a self-test
described in that paragraph, any report or results of that
self-test -
(A) shall be privileged; and
(B) may not be obtained or used by any applicant, department,
or agency in any -
(i) proceeding or civil action in which one or more
violations of this subchapter are alleged; or
(ii) examination or investigation relating to compliance
with this subchapter.
(b) Results of self-testing
(1) In general
No provision of this section may be construed to prevent an
applicant, department, or agency from obtaining or using a report
or results of any self-test in any proceeding or civil action in
which a violation of this subchapter is alleged, or in any
examination or investigation of compliance with this subchapter
if -
(A) the creditor or any person with lawful access to the
report or results -
(i) voluntarily releases or discloses all, or any part of,
the report or results to the applicant, department, or
agency, or to the general public; or
(ii) refers to or describes the report or results as a
defense to charges of violations of this subchapter against
the creditor to whom the self-test relates; or
(B) the report or results are sought in conjunction with an
adjudication or admission of a violation of this subchapter for
the sole purpose of determining an appropriate penalty or
remedy.
(2) Disclosure for determination of penalty or remedy
Any report or results of a self-test that are disclosed for the
purpose specified in paragraph (1)(B) -
(A) shall be used only for the particular proceeding in which
the adjudication or admission referred to in paragraph (1)(B)
is made; and
(B) may not be used in any other action or proceeding.
(c) Adjudication
An applicant, department, or agency that challenges a privilege
asserted under this section may seek a determination of the
existence and application of that privilege in -
(1) a court of competent jurisdiction; or
(2) an administrative law proceeding with appropriate
jurisdiction.
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