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U.S. Code as of:
01/19/04
Section 1691e. Civil liability
(a) Individual or class action for actual damages
Any creditor who fails to comply with any requirement imposed
under this subchapter shall be liable to the aggrieved applicant
for any actual damages sustained by such applicant acting either in
an individual capacity or as a member of a class.
(b) Recovery of punitive damages in individual and class action for
actual damages; exemptions; maximum amount of punitive damages in
individual actions; limitation on total recovery in class
actions; factors determining amount of award
Any creditor, other than a government or governmental subdivision
or agency, who fails to comply with any requirement imposed under
this subchapter shall be liable to the aggrieved applicant for
punitive damages in an amount not greater than $10,000, in addition
to any actual damages provided in subsection (a) of this section,
except that in the case of a class action the total recovery under
this subsection shall not exceed the lesser of $500,000 or 1 per
centum of the net worth of the creditor. In determining the amount
of such damages in any action, the court shall consider, among
other relevant factors, the amount of any actual damages awarded,
the frequency and persistence of failures of compliance by the
creditor, the resources of the creditor, the number of persons
adversely affected, and the extent to which the creditor's failure
of compliance was intentional.
(c) Action for equitable and declaratory relief
Upon application by an aggrieved applicant, the appropriate
United States district court or any other court of competent
jurisdiction may grant such equitable and declaratory relief as is
necessary to enforce the requirements imposed under this
subchapter.
(d) Recovery of costs and attorney fees
In the case of any successful action under subsection (a), (b),
or (c) of this section, the costs of the action, together with a
reasonable attorney's fee as determined by the court, shall be
added to any damages awarded by the court under such subsection.
(e) Good faith compliance with rule, regulation, or interpretation
of Board or interpretation or approval by an official or employee
of Federal Reserve System duly authorized by Board
No provision of this subchapter imposing liability shall apply to
any act done or omitted in good faith in conformity with any
official rule, regulation, or interpretation thereof by the Board
or in conformity with any interpretation or approval by an official
or employee of the Federal Reserve System duly authorized by the
Board to issue such interpretations or approvals under such
procedures as the Board may prescribe therefor, notwithstanding
that after such act or omission has occurred, such rule,
regulation, interpretation, or approval is amended, rescinded, or
determined by judicial or other authority to be invalid for any
reason.
(f) Jurisdiction of courts; time for maintenance of action;
exceptions
Any action under this section may be brought in the appropriate
United States district court without regard to the amount in
controversy, or in any other court of competent jurisdiction. No
such action shall be brought later than two years from the date of
the occurrence of the violation, except that -
(1) whenever any agency having responsibility for
administrative enforcement under section 1691c of this title
commences an enforcement proceeding within two years from the
date of the occurrence of the violation,
(2) whenever the Attorney General commences a civil action
under this section within two years from the date of the
occurrence of the violation,
then any applicant who has been a victim of the discrimination
which is the subject of such proceeding or civil action may bring
an action under this section not later than one year after the
commencement of that proceeding or action.
(g) Request by responsible enforcement agency to Attorney General
for civil action
The agencies having responsibility for administrative enforcement
under section 1691c of this title, if unable to obtain compliance
with section 1691 of this title, are authorized to refer the matter
to the Attorney General with a recommendation that an appropriate
civil action be instituted. Each agency referred to in paragraphs
(1), (2), and (3) of section 1691c(a) of this title shall refer the
matter to the Attorney General whenever the agency has reason to
believe that 1 or more creditors has engaged in a pattern or
practice of discouraging or denying applications for credit in
violation of section 1691(a) of this title. Each such agency may
refer the matter to the Attorney General whenever the agency has
reason to believe that 1 or more creditors has violated section
1691(a) of this title.
(h) Authority for Attorney General to bring civil action;
jurisdiction
When a matter is referred to the Attorney General pursuant to
subsection (g) of this section, or whenever he has reason to
believe that one or more creditors are engaged in a pattern or
practice in violation of this subchapter, the Attorney General may
bring a civil action in any appropriate United States district
court for such relief as may be appropriate, including actual and
punitive damages and injunctive relief.
(i) Recovery under both subchapter and fair housing enforcement
provisions prohibited for violation based on same transaction
No person aggrieved by a violation of this subchapter and by a
violation of section 3605 of title 42 shall recover under this
subchapter and section 3612 (!1) of title 42, if such violation is
based on the same transaction.
(j) Discovery of creditor's granting standards
Nothing in this subchapter shall be construed to prohibit the
discovery of a creditor's credit granting standards under
appropriate discovery procedures in the court or agency in which an
action or proceeding is brought.
(k) Notice to HUD of violations
Whenever an agency referred to in paragraph (1), (2), or (3) of
section 1691c(a) of this title -
(1) has reason to believe, as a result of receiving a consumer
complaint, conducting a consumer compliance examination, or
otherwise, that a violation of this subchapter has occurred;
(2) has reason to believe that the alleged violation would be a
violation of the Fair Housing Act [42 U.S.C. 3601 et seq.]; and
(3) does not refer the matter to the Attorney General pursuant
to subsection (g) of this section,
the agency shall notify the Secretary of Housing and Urban
Development of the violation, and shall notify the applicant that
the Secretary of Housing and Urban Development has been notified of
the alleged violation and that remedies for the violation may be
available under the Fair Housing Act.
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