TITLE 15–COMMERCE AND TRADE
CHAPTER 41–CONSUMER CREDIT PROTECTION
Sub Chapter II-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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