The Center For Debt Management
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TITLE 15–COMMERCE AND TRADE

CHAPTER 41–CONSUMER CREDIT PROTECTION

Sub Chapter&nbspII-A –Credit Repair Organizations

Sec. 1679h. Administrative enforcement
(a) In general

    Compliance with the requirements imposed under this subchapter with 
respect to credit repair organizations shall be enforced under the 
Federal Trade Commission Act [15 U.S.C. 41 et seq.] by the Federal Trade 
Commission.

(b) Violations of this subchapter treated as violations of Federal Trade Commission Act

      (1) In general

        For the purpose of the exercise by the Federal Trade Commission 
    of the Commissions functions and powers under the Federal Trade 
    Commission Act [15 U.S.C. 41 et seq.], any violation of any 
    requirement or prohibition imposed under this subchapter with 
    respect to credit repair organizations 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)].

   (2) Enforcement authority under other law

    All functions and powers of the Federal Trade Commission under 
    the Federal Trade Commission Act shall be available to the 
    Commission to enforce compliance with this subchapter by any person 
    subject to enforcement by the Federal Trade Commission pursuant to 
    this subsection, including the power to enforce the provisions of 
    this subchapter in the same manner as if the violation had been a 
    violation of any Federal Trade Commission trade regulation rule, 
    without regard to whether the credit repair organization--
   
(A) is engaged in commerce; or
            (B) meets any other jurisdictional tests in the Federal 
        Trade Commission Act.

(c) State action for violations

 (1) Authority of States

        In addition to such other remedies as are provided under State 
    law, whenever 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 subchapter, the State--
            (A) may bring an action to enjoin such violation;
            (B) may bring an action on behalf of its residents to 
        recover damages for which the person is liable to such residents 
        under section 1679g of this title as a result of the 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 Commission

(A) Notice to Commission

            The State shall serve prior written notice of any civil 
        action under paragraph (1) upon the Federal Trade Commission and 
        provide the Commission with a copy of its complaint, except in 
        any case where such prior notice is not feasible, in which case 
        the State shall serve such notice immediately upon instituting 
        such action.

   (B) Intervention

     The Commission shall have the right--
         (i) to intervene in any action referred to in 
      subparagraph (A);
                (ii) upon so intervening, to be heard on all matters 
            arising in the action; and
       (iii) 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

        Whenever the Federal Trade Commission has instituted a civil 
    action for violation of this subchapter, 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 for any 
    violation of this subchapter that is alleged in that complaint.

(Pub. L. 90-321, title IV, Sec. 410, as added Pub. L. 104-208, div. A, 
title II, Sec. 2451, Sept. 30, 1996, 110 Stat. 3009-460.)

    References in Text

    The Federal Trade Commission Act, referred to in subsecs. (a) and 
(b), is act Sept. 26, 1914, ch. 311, 38 Stat. 717, as amended, which is 
classified generally to subchapter I (Sec. 41 et seq.) of chapter 2 of 
this title. For complete classification of this Act to the Code, see 
section 58 of this title and Tables.
							
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