12 USC Section 5552

§ 5551

TITLE 12—BANKS AND BANKING

section (a) [amending this section] shall take effect on
March 12, 2009.’’

PART D—PRESERVATION OF STATE LAW
§ 5551. Relation to State law
(a) In general
(1) Rule of construction
This title,1 other than sections 1044 through
1048,1 may not be construed as annulling, altering, or affecting, or exempting any person
subject to the provisions of this title 1 from
complying with, the statutes, regulations, orders, or interpretations in effect in any State,
except to the extent that any such provision of
law is inconsistent with the provisions of this
title,1 and then only to the extent of the inconsistency.
(2) Greater protection under State law
For purposes of this subsection, a statute,
regulation, order, or interpretation in effect in
any State is not inconsistent with the provisions of this title 1 if the protection that such
statute, regulation, order, or interpretation
affords to consumers is greater than the protection provided under this title.1 A determination regarding whether a statute, regulation, order, or interpretation in effect in any
State is inconsistent with the provisions of
this title 1 may be made by the Bureau on its
own motion or in response to a nonfrivolous
petition initiated by any interested person.
(b) Relation to other provisions of enumerated
consumer laws that relate to State law
No provision of this title,1 except as provided
in section 1083,1 shall be construed as modifying,
limiting, or superseding the operation of any
provision of an enumerated consumer law that
relates to the application of a law in effect in
any State with respect to such Federal law.
(c) Additional consumer protection regulations
in response to State action
(1) Notice of proposed rule required
The Bureau shall issue a notice of proposed
rulemaking whenever a majority of the States
has enacted a resolution in support of the establishment or modification of a consumer
protection regulation by the Bureau.
(2) Bureau considerations required for issuance of final regulation
Before prescribing a final regulation based
upon a notice issued pursuant to paragraph (1),
the Bureau shall take into account whether—
(A) the proposed regulation would afford
greater protection to consumers than any
existing regulation;
(B) the intended benefits of the proposed
regulation for consumers would outweigh
any increased costs or inconveniences for
consumers, and would not discriminate unfairly against any category or class of consumers; and
(C) a Federal banking agency has advised
that the proposed regulation is likely to
present an unacceptable safety and soundness risk to insured depository institutions.
1 See

References in Text note below.

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(3) Explanation of considerations
The Bureau—
(A) shall include a discussion of the considerations required in paragraph (2) in the
Federal Register notice of a final regulation
prescribed pursuant to this subsection; and
(B) whenever the Bureau determines not to
prescribe a final regulation, shall publish an
explanation of such determination in the
Federal Register, and provide a copy of such
explanation to each State that enacted a
resolution in support of the proposed regulation, the Committee on Banking, Housing,
and Urban Affairs of the Senate, and the
Committee on Financial Services of the
House of Representatives.
(4) Reservation of authority
No provision of this subsection shall be construed as limiting or restricting the authority
of the Bureau to enhance consumer protection
standards established pursuant to this title 1
in response to its own motion or in response to
a request by any other interested person.
(5) Rule of construction
No provision of this subsection shall be construed as exempting the Bureau from complying with subchapter II of chapter 5 of title 5.
(6) Definition
For purposes of this subsection, the term
‘‘consumer protection regulation’’ means a
regulation that the Bureau is authorized to
prescribe under the Federal consumer financial laws.
(Pub. L. 111–203, title X, § 1041, July 21, 2010, 124
Stat. 2011.)
REFERENCES IN TEXT
This title, referred to in subsecs. (a), (b), and (c)(4), is
title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955,
known as the Consumer Financial Protection Act of
2010, which enacted this subchapter and enacted,
amended, and repealed numerous other sections and
notes in the Code. For complete classification of title
X to the Code, see Short Title note set out under section 5301 of this title and Tables.
Sections 1044 through 1048, referred to in subsec.
(a)(1), are sections 1044 to 1048 of Pub. L. 111–203, which
enacted and amended sections 25b and 1465 of this title
and enacted provisions set out as a note below.
Section 1083, referred to in subsec. (b), is section 1083
of Pub. L. 111–203, which amended sections 3802 and 3803
of this title and enacted provisions set out as notes
under section 3802 of this title.
EFFECTIVE DATE
Pub. L. 111–203, title X, § 1048, July 21, 2010, 124 Stat.
2018, provided that: ‘‘This subtitle [subtitle D
(§§ 1041–1048) of title X of Pub. L. 111–203, enacting this
part and enacting and amending sections 25b and 1465 of
this title] shall become effective on the designated
transfer date.’’
[The term ‘‘designated transfer date’’ is defined in
section 5481(9) of this title as the date established under
section 5582 of this title.]

§ 5552. Preservation of enforcement powers of
States
(a) In general
(1) Action by State
Except as provided in paragraph (2), the attorney general (or the equivalent thereof) of

Page 1925

TITLE 12—BANKS AND BANKING

any State may bring a civil action in the
name of such State in any district court of the
United States in that State or in State court
that is located in that State and that has jurisdiction over the defendant, to enforce provisions of this title 1 or regulations issued under
this title,1 and to secure remedies under provisions of this title 1 or remedies otherwise provided under other law. A State regulator may
bring a civil action or other appropriate proceeding to enforce the provisions of this title 1
or regulations issued under this title 1 with respect to any entity that is State-chartered, incorporated, licensed, or otherwise authorized
to do business under State law (except as provided in paragraph (2)), and to secure remedies
under provisions of this title 1 or remedies
otherwise provided under other provisions of
law with respect to such an entity.
(2) Action by State against national bank or
Federal savings association to enforce
rules
(A) In general
Except as permitted under subparagraph
(B), the attorney general (or equivalent
thereof) of any State may not bring a civil
action in the name of such State against a
national bank or Federal savings association
to enforce a provision of this title.1
(B) Enforcement of rules permitted
The attorney general (or the equivalent
thereof) of any State may bring a civil action in the name of such State against a national bank or Federal savings association
in any district court of the United States in
the State or in State court that is located in
that State and that has jurisdiction over the
defendant to enforce a regulation prescribed
by the Bureau under a provision of this
title 1 and to secure remedies under provisions of this title 1 or remedies otherwise
provided under other law.
(3) Rule of construction
No provision of this title 1 shall be construed
as modifying, limiting, or superseding the operation of any provision of an enumerated consumer law that relates to the authority of a
State attorney general or State regulator to
enforce such Federal law.
(b) Consultation required
(1) Notice
(A) In general
Before initiating any action in a court or
other administrative or regulatory proceeding against any covered person as authorized
by subsection (a) to enforce any provision of
this title,1 including any regulation prescribed by the Bureau under this title,1 a
State attorney general or State regulator
shall timely provide a copy of the complete
complaint to be filed and written notice describing such action or proceeding to the Bureau and the prudential regulator, if any, or
the designee thereof.
(B) Emergency action
If prior notice is not practicable, the State
attorney general or State regulator shall
1 See

References in Text note below.

§ 5552

provide a copy of the complete complaint
and the notice to the Bureau and the prudential regulator, if any, immediately upon instituting the action or proceeding.
(C) Contents of notice
The notification required under this paragraph shall, at a minimum, describe—
(i) the identity of the parties;
(ii) the alleged facts underlying the proceeding; and
(iii) whether there may be a need to
coordinate the prosecution of the proceeding so as not to interfere with any action,
including any rulemaking, undertaken by
the Bureau, a prudential regulator, or another Federal agency.
(2) Bureau response
In any action described in paragraph (1), the
Bureau may—
(A) intervene in the action as a party;
(B) upon intervening—
(i) remove the action to the appropriate
United States district court, if the action
was not originally brought there; and
(ii) be heard on all matters arising in the
action; and
(C) appeal any order or judgment, to the
same extent as any other party in the proceeding may.
(c) Regulations
The Bureau shall prescribe regulations to implement the requirements of this section and,
from time to time, provide guidance in order to
further coordinate actions with the State attorneys general and other regulators.
(d) Preservation of State authority
(1) State claims
No provision of this section shall be construed as altering, limiting, or affecting the
authority of a State attorney general or any
other regulatory or enforcement agency or authority to bring an action or other regulatory
proceeding arising solely under the law in effect in that State.
(2) State securities regulators
No provision of this title 1 shall be construed
as altering, limiting, or affecting the authority of a State securities commission (or any
agency or office performing like functions)
under State law to adopt rules, initiate enforcement proceedings, or take any other action with respect to a person regulated by
such commission or authority.
(3) State insurance regulators
No provision of this title 1 shall be construed
as altering, limiting, or affecting the authority of a State insurance commission or State
insurance regulator under State law to adopt
rules, initiate enforcement proceedings, or
take any other action with respect to a person
regulated by such commission or regulator.
(Pub. L. 111–203, title X, § 1042, July 21, 2010, 124
Stat. 2012.)
REFERENCES IN TEXT
This title, referred to in subsecs. (a), (b)(1)(A), and
(d)(2), (3), is title X of Pub. L. 111–203, July 21, 2010, 124

§ 5553

TITLE 12—BANKS AND BANKING

Page 1926

Stat. 1955, known as the Consumer Financial Protection Act of 2010, which enacted this subchapter and enacted, amended, and repealed numerous other sections
and notes in the Code. For complete classification of
title X to the Code, see Short Title note set out under
section 5301 of this title and Tables.

ment, record, report, memorandum, paper,
communication, tabulation, chart, logs, electronic files, or other data or data compilations
stored in any medium.
(5) Violation

EFFECTIVE DATE

The term ‘‘violation’’ means any act or
omission that, if proved, would constitute a
violation of any provision of Federal consumer
financial law.

Section effective on the designated transfer date, see
section 1048 of Pub. L. 111–203, set out as a note under
section 5551 of this title.

§ 5553. Preservation of existing contracts
title,1

This
and regulations, orders, guidance,
and interpretations prescribed, issued, or established by the Bureau, shall not be construed to
alter or affect the applicability of any regulation, order, guidance, or interpretation prescribed, issued, and established by the Comptroller of the Currency or the Director of the Office
of Thrift Supervision regarding the applicability
of State law under Federal banking law to any
contract entered into on or before July 21, 2010,
by national banks, Federal savings associations,
or subsidiaries thereof that are regulated and
supervised by the Comptroller of the Currency
or the Director of the Office of Thrift Supervision, respectively.
(Pub. L. 111–203, title X, § 1043, July 21, 2010, 124
Stat. 2014.)
REFERENCES IN TEXT
This title, referred to in text, is title X of Pub. L.
111–203, July 21, 2010, 124 Stat. 1955, known as the Consumer Financial Protection Act of 2010, which enacted
this subchapter and enacted, amended, and repealed numerous other sections and notes in the Code. For complete classification of title X to the Code, see Short
Title note set out under section 5301 of this title and
Tables.
EFFECTIVE DATE
Section effective on the designated transfer date, see
section 1048 of Pub. L. 111–203, set out as a note under
section 5551 of this title.

PART E—ENFORCEMENT POWERS
§ 5561. Definitions
For purposes of this part, the following definitions shall apply:
(1) Bureau investigation
The term ‘‘Bureau investigation’’ means any
inquiry conducted by a Bureau investigator
for the purpose of ascertaining whether any
person is or has been engaged in any conduct
that is a violation, as defined in this section.
(2) Bureau investigator
The term ‘‘Bureau investigator’’ means any
attorney or investigator employed by the Bureau who is charged with the duty of enforcing
or carrying into effect any Federal consumer
financial law.
(3) Custodian
The term ‘‘custodian’’ means the custodian
or any deputy custodian designated by the Bureau.
(4) Documentary material
The term ‘‘documentary material’’ includes
the original or any copy of any book, docu1 See

References in Text note below.

(Pub. L. 111–203, title X, § 1051, July 21, 2010, 124
Stat. 2018.)
EFFECTIVE DATE
Pub. L. 111–203, title X, § 1058, July 21, 2010, 124 Stat.
2035, provided that: ‘‘This subtitle [subtitle E
(§§ 1051–1058), enacting this part] shall become effective
on the designated transfer date.’’
[The term ‘‘designated transfer date’’ is defined in
section 5481(9) of this title as the date established under
section 5582 of this title.]

§ 5562. Investigations and administrative discovery
(a) Joint investigations
(1) In general
The Bureau or, where appropriate, a Bureau
investigator, may engage in joint investigations and requests for information, as authorized under this title.1
(2) Fair lending
The authority under paragraph (1) includes
matters relating to fair lending, and where appropriate, joint investigations with, and requests for information from, the Secretary of
Housing and Urban Development, the Attorney General of the United States, or both.
(b) Subpoenas
(1) In general
The Bureau or a Bureau investigator may
issue subpoenas for the attendance and testimony of witnesses and the production of relevant papers, books, documents, or other material in connection with hearings under this
title.1
(2) Failure to obey
In the case of contumacy or refusal to obey
a subpoena issued pursuant to this paragraph
and served upon any person, the district court
of the United States for any district in which
such person is found, resides, or transacts
business, upon application by the Bureau or a
Bureau investigator and after notice to such
person, may issue an order requiring such person to appear and give testimony or to appear
and produce documents or other material.
(3) Contempt
Any failure to obey an order of the court
under this subsection may be punished by the
court as a contempt thereof.
(c) Demands
(1) In general
Whenever the Bureau has reason to believe
that any person may be in possession, custody,
or control of any documentary material or
1 See

References in Text note below.