[Code of Federal Regulations]
[Title 12, Volume 2, Parts 200 to 219]
[Revised as of January 1, 2001]
From the U.S. Government Printing Office via GPO Access
[CITE: 12CFR202.14]

[Page 29-30]
 
                       TITLE 12--BANKS AND BANKING
 
                   CHAPTER II--FEDERAL RESERVE SYSTEM
 
PART 202--EQUAL CREDIT OPPORTUNITY (REGULATION B)--Table of Contents
 
Sec. 202.14  Enforcement, penalties and liabilities.

    (a) Administrative enforcement. (1) As set forth more fully in 
section 704 of the Act, administrative enforcement of the Act and this 
regulation regarding certain creditors is assigned to the Comptroller of 
the Currency, Board of Governors of the Federal Reserve System, Board of 
Directors of the Federal Deposit Insurance Corporation, Office of Thrift 
Supervision, National Credit Union Administration, Interstate Commerce 
Commission, Secretary of Agriculture, Farm Credit Administration, 
Securities and Exchange Commission, Small Business Administration, and 
Secretary of Transportation.
    (2) Except to the extent that administrative enforcement is 
specifically assigned to other authorities, compliance with the 
requirements imposed under the act and this regulation is enforced by 
the Federal Trade Commission.
    (b) Penalties and liabilities. (1) Sections 706 (a) and (b) and 
702(g) of the Act provide that any creditor that fails to comply with a 
requirement imposed by the Act or this regulation is subject to civil 
liability for actual and punitive damages in individual or class 
actions. Pursuant to sections 704 (b), (c), and (d) and 702(g) of the 
Act, violations of the Act or regulations also constitute violations of 
other Federal laws. Liability for punitive damages is restricted to 
nongovernmental entities and is limited to $10,000 in individual actions 
and the lesser of $500,000 or 1 percent of the creditor's net worth in 
class actions. Section 706(c) provides for equitable and declaratory 
relief and section 706(d) authorizes the awarding of costs and 
reasonable attorney's fees to an aggrieved applicant in a successful 
action.
    (2) As provided in section 706(f), a civil action under the Act or 
this regulation 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 within two years after the date of the 
occurrence of the violation, or within one year after the commencement 
of an administrative enforcement proceeding or of a civil action brought 
by the Attorney General of the United States within two years after the 
alleged violation.
    (3) If an agency responsible for administrative enforcement is 
unable to obtain compliance with the act or this part, it may refer the 
matter to the Attorney General of the United States. In addition, if the 
Board, the Comptroller of the Currency, the Federal Deposit Insurance 
Corporation, the Office of Thrift Supervision, or the National Credit 
Union Administration has reason to believe that one or more creditors 
engaged in a pattern or practice of discouraging or denying applications 
in violation of the act or this part, the agency shall refer the matter 
to the Attorney General. Furthermore, the agency may refer a matter to 
the Attorney General if the agency has reason to believe that one or 
more creditors violated section 701(a) of the act.
    (4) On referral, or whenever the Attorney General has reason to 
believe that one or more creditors engaged in a pattern or practice in 
violation of the act or this regulation, the Attorney General may bring 
a civil action for such relief as may be appropriate, including actual 
and punitive damages and injunctive relief.
    (5) If the Board, the Comptroller of the Currency, the Federal 
Deposit Insurance Corporation, the Office of Thrift Supervision, or the 
National Credit Union Administration has reason to believe (as a result 
of a consumer complaint, conducting a consumer compliance examination, 
or otherwise) that a violation of the act or this part has occurred 
which is also a violation of the Fair Housing Act, and the matter is not 
referred to the Attorney General, the agency shall notify:
    (i) The Secretary of Housing and Urban Development; and
    (ii) The applicant that the Secretary of Housing and Urban 
Development has been notified and that remedies for the violation may be 
available under the Fair Housing Act.
    (c) Failure of compliance. A creditor's failure to comply with 
Secs. 202.6(b)(6), 202.9, 202.10, 202.12 or 202.13 is not a violation if 
it results from an inadvertent error. On discovering an error under

[[Page 30]]

Sec. Sec. 202.9 and 202.10, the creditor shall correct it as soon as 
possible. If a creditor inadvertently obtains the monitoring information 
regarding the race or national origin and sex of the applicant in a 
dwelling-related transaction not overed by Sec. 202.13, the creditor may 
act on and retain the application without violating the regulation.

[Reg. B, 50 FR 48026, Nov. 20, 1985, as amended at 54 FR 53539, Dec. 29, 
1989; 58 FR 65662, Dec. 16, 1993]