Section 621 of the Fair Credit Reporting Act (FCRA).
The Fair Credit Reporting Act - Section 621
621. Administrative enforcement [15 U.S.C. 1681s]
(a) (1) Enforcement by Federal Trade Commission. Compliance with the
requirements imposed under this title shall be enforced under the Federal Trade
Commission Act [15 U.S.C. §41 et seq.] by the Federal Trade Commission with
respect to consumer reporting agencies and all other persons subject thereto,
except to the extent that enforcement of the requirements imposed under this
title is specifically committed to some other government agency under subsection
(b) hereof. For the purpose of the exercise by the Federal Trade Commission of
its functions and powers under the Federal Trade Commission Act, a violation of
any requirement or prohibition imposed under this title shall constitute an
unfair or deceptive act or practice in commerce in violation of section 5(a) of
the Federal Trade Commission Act [15 U.S.C. 45(a)] and shall be subject to
enforcement by the Federal Trade Commission under section 5(b) thereof [15 U.S.C.
45(b)] with respect to any consumer reporting agency or person subject to
enforcement by the Federal Trade Commission pursuant to this subsection,
irrespective of whether that person is engaged in commerce or meets any other
jurisdictional tests in the Federal Trade Commission Act. The Federal Trade
Commission shall have such procedural, investigative, and enforcement powers,
including the power to issue procedural rules in enforcing compliance with the
requirements imposed under this title and to require the filing of reports, the
production of documents, and the appearance of witnesses as though the
applicable terms and conditions of the Federal Trade Commission Act were part of
this title. Any person violating any of the provisions of this title shall be
subject to the penalties and entitled to the privileges and immunities provided
in the Federal Trade Commission Act as though the applicable terms and
provisions thereof were part of this title.
(2)(A) In the event of a knowing violation, which constitutes a pattern or
practice of violations of this title, the Commission may commence a civil action
to recover a civil penalty in a district court of the United States against any
person that violates this title. In such action, such person shall be liable for
a civil penalty of not more than $2,500 per violation.
(B) In determining the amount of a civil penalty under subparagraph (A), the
court shall take into account the degree of culpability, any history of prior
such conduct, ability to pay, effect on ability to continue to do business, and
such other matters as justice may require.
(3) Notwithstanding paragraph (2), a court may not impose any civil penalty on a
person for a violation of section 623(a)(1) [1681s-2] unless the person has
been enjoined from committing the violation, or ordered not to commit the
violation, in an action or proceeding brought by or on behalf of the Federal
Trade Commission, and has violated the injunction or order, and the court may
not impose any civil penalty for any violation occurring before the date of the
violation of the injunction or order.
(b) Enforcement by other agencies. Compliance with the requirements imposed
under this title with respect to consumer reporting agencies, persons who use
consumer reports from such agencies, persons who furnish information to such
agencies, and users of information that are subject to subsection (d) of section
615 [1681m] shall be enforced under
(1) section 8 of the Federal Deposit Insurance Act [12 U.S.C. 1818], in the
case of
(A) national banks, and Federal branches and Federal agencies of foreign banks,
by the Office of the Comptroller of the Currency;
(B) member banks of the Federal Reserve System (other than national banks),
branches and agencies of foreign banks (other than Federal branches, Federal
agencies, and insured State branches of foreign banks), commercial lending
companies owned or controlled by foreign banks, and organizations operating
under section 25 or 25(a) [25A] of the Federal Reserve Act [12 U.S.C. §601 et
seq., §611 et seq], by the Board of Governors of the Federal Reserve System;
and
(C) banks insured by the Federal Deposit Insurance Corporation (other than
members of the Federal Reserve System) and insured State branches of foreign
banks, by the Board of Directors of the Federal Deposit Insurance Corporation;
(2) section 8 of the Federal Deposit Insurance Act [12 U.S.C. 1818], by the
Director of the Office of Thrift Supervision, in the case of a savings
association the deposits of which are insured by the Federal Deposit Insurance
Corporation;
(3) the Federal Credit Union Act [12 U.S.C. §1751 et seq.], by the
Administrator of the National Credit Union Administration [National Credit Union
Administration Board] with respect to any Federal credit union;
(4) subtitle IV of title 49 [49 U.S.C. §10101 et seq.], by the Secretary of
Transportation, with respect to all carriers subject to the jurisdiction of the
Surface Transportation Board;
(5) the Federal Aviation Act of 1958 [49 U.S.C. Appx §1301 et seq.], by the
Secretary of Transportation with respect to any air carrier or foreign air
carrier subject to that Act [49 U.S.C. Appx §1301 et seq.]; and
(6) the Packers and Stockyards Act, 1921 [7 U.S.C. §181 et seq.] (except as
provided in section 406 of that Act [7 U.S.C. §226 and 227]), by the Secretary
of Agriculture with respect to any activities subject to that Act. The terms
used in paragraph (1) that are not defined in this title or otherwise defined in
section 3(s) of the Federal Deposit Insurance Act (12 U.S.C. §1813(s)) shall
have the meaning given to them in section 1(b) of the International Banking Act
of 1978 (12 U.S.C. 3101).
(c) State action for violations.
(1) Authority of states. In addition to such other remedies as are provided
under State law, if the chief law enforcement officer of a State, or an official
or agency designated by a State, has reason to believe that any person has
violated or is violating this title, the State
(A) may bring an action to enjoin such violation in any appropriate United
States district court or in any other court of competent jurisdiction;
(B) subject to paragraph (5), may bring an action on behalf of the residents of
the State to recover
(i) damages for which the person is liable to such residents under sections 616
and 617 [§1681n and 1681o] as a result of the violation;
(ii) in the case of a violation of section 623(a) [1681s-2], damages for which
the person would, but for section 623(c) [1681s-2], be liable to such
residents as a result of the violation; or
(iii) damages of not more than $1,000 for each willful or negligent violation;
and
(C) in the case of any successful action under subparagraph (A) or (B), shall be
awarded the costs of the action and reasonable attorney fees as determined by
the court.
(2) Rights of federal regulators. The State shall serve prior written notice of
any action under paragraph (1) upon the Federal Trade Commission or the
appropriate Federal regulator determined under subsection (b) and provide the
Commission or appropriate Federal regulator with a copy of its complaint, except
in any case in which such prior notice is not feasible, in which case the State
shall serve such notice immediately upon instituting such action. The Federal
Trade Commission or appropriate Federal regulator shall have the right
(A) to intervene in the action;
(B) upon so intervening, to be heard on all matters arising therein;
(C) to remove the action to the appropriate United States district court; and
(D) to file petitions for appeal.
(3) Investigatory powers. For purposes of bringing any action under this
subsection, nothing in this subsection shall prevent the chief law enforcement
officer, or an official or agency designated by a State, from exercising the
powers conferred on the chief law enforcement officer or such official by the
laws of such State to conduct investigations or to administer oaths or
affirmations or to compel the attendance of witnesses or the production of
documentary and other evidence.
(4) Limitation on state action while federal action pending. If the Federal
Trade Commission or the appropriate Federal regulator has instituted a civil
action or an administrative action under section 8 of the Federal Deposit
Insurance Act for a violation of this title, no State may, during the pendency
of such action, bring an action under this section against any defendant named
in the complaint of the Commission or the appropriate Federal regulator for any
violation of this title that is alleged in that complaint.
(5) Limitations on state actions for violation of section 623(a)(1) [1681s-2].
(A) Violation of injunction required. A State may not bring an action against a
person under paragraph (1)(B) for a violation of section 623(a)(1) [1681s-2],
unless
(i) the person has been enjoined from committing the violation, in an action
brought by the State under paragraph (1)(A); and
(ii) the person has violated the injunction.
(B) Limitation on damages recoverable. In an action against a person under
paragraph (1)(B) for a violation of section 623(a)(1) [1681s-2], a State may
not recover any damages incurred before the date of the violation of an
injunction on which the action is based.
(d) Enforcement under other authority. For the purpose of the exercise by any
agency referred to in subsection (b) of this section of its powers under any Act
referred to in that subsection, a violation of any requirement imposed under
this title shall be deemed to be a violation of a requirement imposed under that
Act. In addition to its powers under any provision of law specifically referred
to in subsection (b) of this section, each of the agencies referred to in that
subsection may exercise, for the purpose of enforcing compliance with any
requirement imposed under this title any other authority conferred on it by law.
(e) Regulatory authority
(1) The Federal banking agencies referred to in paragraphs (1) and (2) of
subsection (b) shall jointly prescribe such regulations as necessary to carry
out the purposes of this Act with respect to any persons identified under
paragraphs (1) and
(2) of subsection (b), and the Board of Governors of the Federal Reserve
System shall have authority to prescribe regulations consistent with such joint
regulations with respect to bank holding companies and affiliates (other than
depository institutions and consumer reporting agencies) of such holding
companies.
(2) The Board of the National Credit Union Administration shall prescribe such
regulations as necessary to carry out the purposes of this Act with respect to
any persons identified under paragraph (3) of subsection (b).
