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Legal Codes

The following federally enacted statutes govern and are relevant to the Consumer Financial Protection Bureau (CFPB). These statutes are frequently referenced in the CFPB’s arbitration rules and official interpretations.

 

12 U.S.C. § 5481 Definitions
12 U.S.C. § 5517 Limitations on authorities of the Bureau; preservation of authorities
12 U.S.C. § 5519 Exclusion for auto dealers

 

12 U.S.C. § 5481 Definitions.

Except as otherwise provided in this title, for purposes of this title, the following definitions shall apply:

  1. Affiliate. The term “affiliate” means any person that controls, is controlled by, or is under common control with another person.
  2. Bureau. The term “Bureau” means the Bureau of Consumer Financial Protection.
  3. Business of insurance. The term “business of insurance” means the writing of insurance or the reinsuring of risks by an insurer, including all acts necessary to such writing or reinsuring and the activities relating to the writing of insurance or the reinsuring of risks conducted by persons who act as, or are, officers, directors, agents, or employees of insurers or who are other persons authorized to act on behalf of such persons.
  4. Consumer. The term “consumer” means an individual or an agent, trustee, or representative acting on behalf of an individual.
  5. Consumer financial product or service. The term “consumer financial product or service” means any financial product or service that is described in one or more categories under–
    1. paragraph (15) and is offered or provided for use by consumers primarily for personal, family, or household purposes; or
    2. clause (i), (iii), (ix), or (x) of paragraph (15)(A), and is delivered, offered, or provided in connection with a consumer financial product or service referred to in subparagraph (A).
  6. Covered person. The term “covered person” means–
    1. any person that engages in offering or providing a consumer financial product or service; and
    2. any affiliate of a person described in subparagraph (A) if such affiliate acts as a service provider to such person.
  7. Credit. The term “credit” means the right granted by a person to a consumer to defer payment of a debt, incur debt and defer its payment, or purchase property or services and defer payment for such purchase.
  8. Deposit-taking activity. The term “deposit-taking activity” means–
    1. the acceptance of deposits, maintenance of deposit accounts, or the provision of services related to the acceptance of deposits or the maintenance of deposit accounts;
    2. the acceptance of funds, the provision of other services related to the acceptance of funds, or the maintenance of member share accounts by a credit union; or
    3. the receipt of funds or the equivalent thereof, as the Bureau may determine by rule or order, received or held by a covered person (or an agent for a covered person) for the purpose of facilitating a payment or transferring funds or value of funds between a consumer and a third party.
  9. Designated transfer date. The term “designated transfer date” means the date established under section 1062 [12 USCS § 5582].
  10. Director. The term “Director” means the Director of the Bureau.
  11. Electronic conduit services. The term “electronic conduit services”–
    1. means the provision, by a person, of electronic data transmission, routing, intermediate or transient storage, or connections to a telecommunications system or network; and
    2. does not include a person that provides electronic conduit services if, when providing such services, the person–
      1. selects or modifies the content of the electronic data;
      2. transmits, routes, stores, or provides connections for electronic data, including financial data, in a manner that such financial data is differentiated from other types of data of the same form that such person transmits, routes, or stores, or with respect to which, provides connections; or
      3. is a payee, payor, correspondent, or similar party to a payment transaction with a consumer.
  12. Enumerated consumer laws. Except as otherwise specifically provided in section 1029 [12 USCS § 5519], subtitle G or subtitle H, the term “enumerated consumer laws” means–
    1. the Alternative Mortgage Transaction Parity Act of 1982 (12 U.S.C. 3801 et seq.);
    2. the Consumer Leasing Act of 1976 (15 U.S.C. 1667 et seq.);
    3. the Electronic Fund Transfer Act (15 U.S.C. 1693 et seq.), except with respect to section 920 of that Act [15 USCS § 1693r];
    4. the Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.);
    5. the Fair Credit Billing Act (15 U.S.C. 1666 et seq.);
    6. the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.), except with respect to sections 615(e) and 628 of that Act (15 U.S.C. 1681m(e), 1681w);
    7. the Home Owners [Homeowners] Protection Act of 1998 (12 U.S.C. 4901 et seq.);
    8. the Fair Debt Collection Practices Act (15 U.S.C. 1692 et seq.);
    9. subsections (b) through (f) of section 43 of the Federal Deposit Insurance Act (12 U.S.C. 1831t(c)-(f));
    10. sections 502 through 509 of the Gramm-Leach-Bliley Act (15 U.S.C. 6802-6809) except for section 505 [15 USCS § 6805] as it applies to section 501(b) [15 USCS § 6801(b)];
    11. the Home Mortgage Disclosure Act of 1975 (12 U.S.C. 2801 et seq.);
    12. the Home Ownership and Equity Protection Act of 1994 (15 U.S.C. 1601 note);
    13. the Real Estate Settlement Procedures Act of 1974 (12 U.S.C. 2601 et seq.);
    14. the S.A.F.E. Mortgage Licensing Act of 2008 (12 U.S.C. 5101 et seq.);
    15. the Truth in Lending Act (15 U.S.C. 1601 et seq.);
    16. the Truth in Savings Act (12 U.S.C. 4301 et seq.);
    17. section 626 of the Omnibus Appropriations Act, 2009 (Public Law 111-8); and
    18. the Interstate Land Sales Full Disclosure Act (15 U.S.C. 1701).
  13. Fair lending. The term “fair lending” means fair, equitable, and nondiscriminatory access to credit for consumers.
  14. Federal consumer financial law. The term “Federal consumer financial law” means the provisions of this title, the enumerated consumer laws, the laws for which authorities are transferred under subtitles F and H, and any rule or order prescribed by the Bureau under this title, an enumerated consumer law, or pursuant to the authorities transferred under subtitles F and H. The term does not include the Federal Trade Commission Act [15 USCS §§ 41 et seq.].
  15. Financial product or service.
    1. In general. The term “financial product or service” means–
      1. extending credit and servicing loans, including acquiring, purchasing, selling, brokering, or other extensions of credit (other than solely extending commercial credit to a person who originates consumer credit transactions);
      2. extending or brokering leases of personal or real property that are the functional equivalent of purchase finance arrangements, if–
        1. the lease is on a non-operating basis;
        2. the initial term of the lease is at least 90 days; and
        3. in the case of a lease involving real property, at the inception of the initial lease, the transaction is intended to result in ownership of the leased property to be transferred to the lessee, subject to standards prescribed by the Bureau;
      3. providing real estate settlement services, except such services excluded under subparagraph (C), or performing appraisals of real estate or personal property;
      4. engaging in deposit-taking activities, transmitting or exchanging funds, or otherwise acting as a custodian of funds or any financial instrument for use by or on behalf of a consumer;
      5. selling, providing, or issuing stored value or payment instruments, except that, in the case of a sale of, or transaction to reload, stored value, only if the seller exercises substantial control over the terms or conditions of the stored value provided to the consumer where, for purposes of this clause–
        1. a seller shall not be found to exercise substantial control over the terms or conditions of the stored value if the seller is not a party to the contract with the consumer for the stored value product, and another person is principally responsible for establishing the terms or conditions of the stored value; and
        2. advertising the nonfinancial goods or services of the seller on the stored value card or device is not in itself an exercise of substantial control over the terms or conditions;
      6. providing check cashing, check collection, or check guaranty services;
      7. providing payments or other financial data processing products or services to a consumer by any technological means, including processing or storing financial or banking data for any payment instrument, or through any payments systems or network used for processing payments data, including payments made through an online banking system or mobile telecommunications network, except that a person shall not be deemed to be a covered person with respect to financial data processing solely because the person–
        1. is a merchant, retailer, or seller of any nonfinancial good or service who engages in financial data processing by transmitting or storing payments data about a consumer exclusively for purpose of initiating payments instructions by the consumer to pay such person for the purchase of, or to complete a commercial transaction for, such nonfinancial good or service sold directly by such person to the consumer; or
        2. provides access to a host server to a person for purposes of enabling that person to establish and maintain a website;
      8. providing financial advisory services (other than services relating to securities provided by a person regulated by the Commission or a person regulated by a State securities Commission, but only to the extent that such person acts in a regulated capacity) to consumers on individual financial matters or relating to proprietary financial products or services (other than by publishing any bona fide newspaper, news magazine, or business or financial publication of general and regular circulation, including publishing market data, news, or data analytics or investment information or recommendations that are not tailored to the individual needs of a particular consumer), including–
        1. providing credit counseling to any consumer; and
        2. providing services to assist a consumer with debt management or debt settlement, modifying the terms of any extension of credit, or avoiding foreclosure;
      9. collecting, analyzing, maintaining, or providing consumer report information or other account information, including information relating to the credit history of consumers, used or expected to be used in connection with any decision regarding the offering or provision of a consumer financial product or service, except to the extent that–
        1. a person–
        2. (aa) collects, analyzes, or maintains information that relates solely to the transactions between a consumer and such person;
          (bb) provides the information described in item (aa) to an affiliate of such person; or
          (cc) provides information that is used or expected to be used solely in any decision regarding the offering or provision of a product or service that is not a consumer financial product or service, including a decision for employment, government licensing, or a residential lease or tenancy involving a consumer; and
        3. the information described in subclause (I)(aa) is not used by such person or affiliate in connection with any decision regarding the offering or provision of a consumer financial product or service to the consumer, other than credit described in section 1027(a)(2)(A) [12 USCS § 5517(a)(2)(A)];
      10. collecting debt related to any consumer financial product or service; and
      11. such other financial product or service as may be defined by the Bureau, by regulation, for purposes of this title, if the Bureau finds that such financial product or service is–
        1. entered into or conducted as a subterfuge or with a purpose to evade any Federal consumer financial law; or
        2. permissible for a bank or for a financial holding company to offer or to provide under any provision of a Federal law or regulation applicable to a bank or a financial holding company, and has, or likely will have, a material impact on consumers.
    2. Rule of construction.
      1. In general. For purposes of subparagraph (A)(xi)(II), and subject to clause (ii) of this subparagraph, the following activities provided to a covered person shall not, for purposes of this title, be considered incidental or complementary to a financial activity permissible for a financial holding company to engage in under any provision of a Federal law or regulation applicable to a financial holding company:
        1. Providing information products or services to a covered person for identity authentication.
        2. Providing information products or services for fraud or identify theft detection, prevention, or investigation.
        3. Providing document retrieval or delivery services.
        4. Providing public records information retrieval.
        5. Providing information products or services for anti-money laundering activities.
      2. Limitation. Nothing in clause (i) may be construed as modifying or limiting the authority of the Bureau to exercise any–
        1. examination or enforcement powers authority under this title with respect to a covered person or service provider engaging in an activity described in subparagraph (A)(ix); or
        2. powers authorized by this title to prescribe rules, issue orders, or take other actions under any enumerated consumer law or law for which the authorities are transferred under subtitle F or H.
      3. Exclusions. The term “financial product or service” does not include–
        1. the business of insurance; or
        2. electronic conduit services.
  16. Foreign exchange. The term “foreign exchange” means the exchange, for compensation, of currency of the United States or of a foreign government for currency of another government.
  17. Insured credit union. The term “insured credit union” has the same meaning as in section 101 of the Federal Credit Union Act (12 U.S.C. 1752).
  18. Payment instrument. The term “payment instrument” means a check, draft, warrant, money order, traveler’s check, electronic instrument, or other instrument, payment of funds, or monetary value (other than currency).
  19. Person. The term “person” means an individual, partnership, company, corporation, association (incorporated or unincorporated), trust, estate, cooperative organization, or other entity.
  20. Person regulated by the commodity futures trading commission. The term “person regulated by the Commodity Futures Trading Commission” means any person that is registered, or required by statute or regulation to be registered, with the Commodity Futures Trading Commission, but only to the extent that the activities of such person are subject to the jurisdiction of the Commodity Futures Trading Commission under the Commodity Exchange Act.
  21. Person regulated by the commission. The term “person regulated by the Commission” means a person who is–
    1. a broker or dealer that is required to be registered under the Securities Exchange Act of 1934 [15 USCS §§ 78a et seq.];
    2. an investment adviser that is registered under the Investment Advisers Act of 1940 [15 USCS §§ 80b-1 et seq.];
    3. an investment company that is required to be registered under the Investment Company Act of 1940 [15 USCS §§ 80a-1 et seq.], and any company that has elected to be regulated as a business development company under that Act;
    4. a national securities exchange that is required to be registered under the Securities Exchange Act of 1934 [15 USCS §§ 78a et seq.];
    5. a transfer agent that is required to be registered under the Securities Exchange Act of 1934 [15 USCS §§ 78a et seq.];
    6. a clearing corporation that is required to be registered under the Securities Exchange Act of 1934 [15 USCS §§ 78a et seq.];
    7. any self-regulatory organization that is required to be registered with the Commission;
    8. any nationally recognized statistical rating organization that is required to be registered with the Commission;
    9. any securities information processor that is required to be registered with the Commission;
    10. any municipal securities dealer that is required to be registered with the Commission;
    11. any other person that is required to be registered with the Commission under the Securities Exchange Act of 1934 [15 USCS §§ 78a et seq.]; and
    12. any employee, agent, or contractor acting on behalf of, registered with, or providing services to, any person described in any of subparagraphs (A) through (K), but only to the extent that any person described in any of subparagraphs (A) through (K), or the employee, agent, or contractor of such person, acts in a regulated capacity.
  22. Person regulated by a state insurance regulator. The term “person regulated by a State insurance regulator” means any person that is engaged in the business of insurance and subject to regulation by any State insurance regulator, but only to the extent that such person acts in such capacity.
  23. Person that performs income tax preparation activities for consumers. The term “person that performs income tax preparation activities for consumers” means–
    1. any tax return preparer (as defined in section 7701(a)(36) of the Internal Revenue Code of 1986 [26 USCS § 7701(a)(36)]), regardless of whether compensated, but only to the extent that the person acts in such capacity;
    2. any person regulated by the Secretary under section 330 of title 31, United States Code, but only to the extent that the person acts in such capacity; and
    3. any authorized IRS e-file Providers (as defined for purposes of section 7216 of the Internal Revenue Code of 1986 [26 USCS § 7216]), but only to the extent that the person acts in such capacity.
  24. Prudential regulator. The term “prudential regulator” means–
    1. in the case of an insured depository institution or depository institution holding company (as defined in section 3 of the Federal Deposit Insurance Act [12 USCS § 1813]), or subsidiary of such institution or company, the appropriate Federal banking agency, as that term is defined in section 3 of the Federal Deposit Insurance Act [12 USCS § 1813]; and
    2. in the case of an insured credit union, the National Credit Union Administration.
  25. Related person. The term “related person”–
    1. shall apply only with respect to a covered person that is not a bank holding company (as that term is defined in section 2 of the Bank Holding Company Act of 1956 [12 USCS § 1841]), credit union, or depository institution;
    2. shall be deemed to mean a covered person for all purposes of any provision of Federal consumer financial law; and
    3. means–
      1. any director, officer, or employee charged with managerial responsibility for, or controlling shareholder of, or agent for, such covered person;
      2. any shareholder, consultant, joint venture partner, or other person, as determined by the Bureau (by rule or on a case-by-case basis) who materially participates in the conduct of the affairs of such covered person; and
      3. any independent contractor (including any attorney, appraiser, or accountant) who knowingly or recklessly participates in any–
        1. violation of any provision of law or regulation; or
        2. breach of a fiduciary duty.
  26. Service provider.
    1. In general. The term “service provider” means any person that provides a material service to a covered person in connection with the offering or provision by such covered person of a consumer financial product or service, including a person that–
      1. participates in designing, operating, or maintaining the consumer financial product or service; or
      2. processes transactions relating to the consumer financial product or service (other than unknowingly or incidentally transmitting or processing financial data in a manner that such data is undifferentiated from other types of data of the same form as the person transmits or processes).
    2. Exceptions. The term “service provider” does not include a person solely by virtue of such person offering or providing to a covered person–
      1. a support service of a type provided to businesses generally or a similar ministerial service; or
      2. time or space for an advertisement for a consumer financial product or service through print, newspaper, or electronic media.
    3. Rule of construction. A person that is a service provider shall be deemed to be a covered person to the extent that such person engages in the offering or provision of its own consumer financial product or service.
  27. State. The term “State” means any State, territory, or possession of the United States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, American Samoa, or the United States Virgin Islands or any federally recognized Indian tribe, as defined by the Secretary of the Interior under section 104(a) of the Federally Recognized Indian Tribe List Act of 1994 (25 U.S.C. 479a-1(a)).
  28. Stored value.
    1. In general. The term “stored value” means funds or monetary value represented in any electronic format, whether or not specially encrypted, and stored or capable of storage on electronic media in such a way as to be retrievable and transferred electronically, and includes a prepaid debit card or product, or any other similar product, regardless of whether the amount of the funds or monetary value may be increased or reloaded.
    2. Exclusion. Notwithstanding subparagraph (A), the term “stored value” does not include a special purpose card or certificate, which shall be defined for purposes of this paragraph as funds or monetary value represented in any electronic format, whether or not specially encrypted, that is–
      1. issued by a merchant, retailer, or other seller of nonfinancial goods or services;
      2. redeemable only for transactions with the merchant, retailer, or seller of nonfinancial goods or services or with an affiliate of such person, which affiliate itself is a merchant, retailer, or seller of nonfinancial goods or services;
      3. issued in a specified amount that, except in the case of a card or product used solely for telephone services, may not be increased or reloaded;
      4. purchased on a prepaid basis in exchange for payment; and
      5. honored upon presentation to such merchant, retailer, or seller of nonfinancial goods or services or an affiliate of such person, which affiliate itself is a merchant, retailer, or seller of nonfinancial goods or services, only for any nonfinancial goods or services.
  29. Transmitting or exchanging funds. The term “transmitting or exchanging funds” means receiving currency, monetary value, or payment instruments from a consumer for the purpose of exchanging or transmitting the same by any means, including transmission by wire, facsimile, electronic transfer, courier, the Internet, or through bill payment services or through other businesses that facilitate third-party transfers within the United States or to or from the United States.

 

12 U.S.C. § 5517 Limitations on authorities of the Bureau; preservation of authorities
  1. Exclusion for merchants, retailers, and other sellers of nonfinancial goods or services.
    1. Sale or brokerage of nonfinancial good or service. The Bureau may not exercise any rulemaking, supervisory, enforcement or other authority under this title with respect to a person who is a merchant, retailer, or seller of any nonfinancial good or service and is engaged in the sale or brokerage of such nonfinancial good or service, except to the extent that such person is engaged in offering or providing any consumer financial product or service, or is otherwise subject to any enumerated consumer law or any law for which authorities are transferred under subtitle F or H.
    2. Offering or provision of certain consumer financial products or services in connection with the sale or brokerage of nonfinancial good or service.
      1. In general. Except as provided in subparagraph (B), and subject to subparagraph (C), the Bureau may not exercise any rulemaking, supervisory, enforcement, or other authority under this title with respect to a merchant, retailer, or seller of nonfinancial goods or services, but only to the extent that such person–
        1. extends credit directly to a consumer, in a case in which the good or service being provided is not itself a consumer financial product or service (other than credit described in this subparagraph), exclusively for the purpose of enabling that consumer to purchase such nonfinancial good or service directly from the merchant, retailer, or seller;
        2. directly, or through an agreement with another person, collects debt arising from credit extended as described in clause (i); or
        3. sells or conveys debt described in clause (i) that is delinquent or otherwise in default.
      2. Applicability. Subparagraph (A) does not apply to any credit transaction or collection of debt, other than as described in subparagraph (C)(i), arising from a transaction described in subparagraph (A)–
        1. in which the merchant, retailer, or seller of nonfinancial goods or services assigns, sells or otherwise conveys to another person such debt owed by the consumer (except for a sale of debt that is delinquent or otherwise in default, as described in subparagraph (A)(iii));
        2. in which the credit extended significantly exceeds the market value of the nonfinancial good or service provided, or the Bureau otherwise finds that the sale of the nonfinancial good or service is done as a subterfuge, so as to evade or circumvent the provisions of this title; or
        3. in which the merchant, retailer, or seller of nonfinancial goods or services regularly extends credit and the credit is subject to a finance charge.
      3. Limitations.
        1. In general. Notwithstanding subparagraph (B), subparagraph (A) shall apply with respect to a merchant, retailer, or seller of nonfinancial goods or services that is not engaged significantly in offering or providing consumer financial products or services.
        2. Exception. Subparagraph (A) and clause (i) of this subparagraph do not apply to any merchant, retailer, or seller of nonfinancial goods or services–
          1. if such merchant, retailer, or seller of nonfinancial goods or services is engaged in a transaction described in subparagraph (B)(i) or (B)(ii); or
          2. to the extent that such merchant, retailer, or seller is subject to any enumerated consumer law or any law for which authorities are transferred under subtitle F or H, but the Bureau may exercise such authority only with respect to that law.
      4. Rules.
        1. Authority of other agencies. No provision of this title shall be construed as modifying, limiting, or superseding the supervisory or enforcement authority of the Federal Trade Commission or any other agency (other than the Bureau) with respect to credit extended, or the collection of debt arising from such extension, directly by a merchant or retailer to a consumer exclusively for the purpose of enabling that consumer to purchase nonfinancial goods or services directly from the merchant or retailer.
        2. Small businesses. A merchant, retailer, or seller of nonfinancial goods or services that would otherwise be subject to the authority of the Bureau solely by virtue of the application of subparagraph (B)(iii) shall be deemed not to be engaged significantly in offering or providing consumer financial products or services under subparagraph (C)(i), if such person–
          1. only extends credit for the sale of nonfinancial goods or services, as described in subparagraph (A)(i);
          2. retains such credit on its own accounts (except to sell or convey such debt that is delinquent or otherwise in default); and
          3. meets the relevant industry size threshold to be a small business concern, based on annual receipts, pursuant to section 3 of the Small Business Act (15 U.S.C. 632) and the implementing rules thereunder.
        3. Initial year. A merchant, retailer, or seller of nonfinancial goods or services shall be deemed to meet the relevant industry size threshold described in clause (ii)(III) during the first year of operations of that business concern if, during that year, the receipts of that business concern reasonably are expected to meet that size threshold.
        4. Other standards for small business. With respect to a merchant, retailer, or seller of nonfinancial goods or services that is a classified on a basis other than annual receipts for the purposes of section 3 of the Small Business Act (15 U.S.C. 632) and the implementing rules thereunder, such merchant, retailer, or seller shall be deemed to meet the relevant industry size threshold described in clause (ii)(III) if such merchant, retailer, or seller meets the relevant industry size threshold to be a small business concern based on the number of employees, or other such applicable measure, established under that Act [15 USCS §§ 631 et seq.].
      5. Exception from State enforcement. To the extent that the Bureau may not exercise authority under this subsection with respect to a merchant, retailer, or seller of nonfinancial goods or services, no action by a State attorney general or State regulator with respect to a claim made under this title may be brought under subsection 1042(a) [12 USCS § 5552(a)], with respect to an activity described in any of clauses (i) through (iii) of subparagraph (A) by such merchant, retailer, or seller of nonfinancial goods or services.
  2. Exclusion for real estate brokerage activities.
    1. Real estate brokerage activities excluded. Without limiting subsection (a), and except as permitted in paragraph (2), the Bureau may not exercise any rulemaking, supervisory, enforcement, or other authority under this title with respect to a person that is licensed or registered as a real estate broker or real estate agent, in accordance with State law, to the extent that such person–
      1. acts as a real estate agent or broker for a buyer, seller, lessor, or lessee of real property;
      2. brings together parties interested in the sale, purchase, lease, rental, or exchange of real property;
      3. negotiates, on behalf of any party, any portion of a contract relating to the sale, purchase, lease, rental, or exchange of real property (other than in connection with the provision of financing with respect to any such transaction); or
      4. offers to engage in any activity, or act in any capacity, described in subparagraph (A), (B), or (C).
    2. Description of activities. The Bureau may exercise rulemaking, supervisory, enforcement, or other authority under this title with respect to a person described in paragraph (1) when such person is–
      1. engaged in an activity of offering or providing any consumer financial product or service, except that the Bureau may exercise such authority only with respect to that activity; or
      2. otherwise subject to any enumerated consumer law or any law for which authorities are transferred under subtitle F or H, but the Bureau may exercise such authority only with respect to that law.
  3. Exclusion for manufactured home retailers and modular home retailers.
    1. In general. The Director may not exercise any rulemaking, supervisory, enforcement, or other authority over a person to the extent that–
      1. such person is not described in paragraph (2); and
      2. such person–
        1. acts as an agent or broker for a buyer or seller of a manufactured home or a modular home;
        2. facilitates the purchase by a consumer of a manufactured home or modular home, by negotiating the purchase price or terms of the sales contract (other than providing financing with respect to such transaction); or
        3. offers to engage in any activity described in clause (i) or (ii).
    2. Description of activities. A person is described in this paragraph to the extent that such person is engaged in the offering or provision of any consumer financial product or service or is otherwise subject to any enumerated consumer law or any law for which authorities are transferred under subtitle F or H.
    3. Definitions. For purposes of this subsection, the following definitions shall apply:
      1. Manufactured home. The term “manufactured home” has the same meaning as in section 603 of the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 U.S.C. 5402).
      2. Modular home. The term “modular home” means a house built in a factory in 2 or more modules that meet the State or local building codes where the house will be located, and where such modules are transported to the building site, installed on foundations, and completed.
  4. Exclusion for accountants and tax preparers.
    1. In general. Except as permitted in paragraph (2), the Bureau may not exercise any rulemaking, supervisory, enforcement, or other authority over–
      1. any person that is a certified public accountant, permitted to practice as a certified public accounting firm, or certified or licensed for such purpose by a State, or any individual who is employed by or holds an ownership interest with respect to a person described in this subparagraph, when such person is performing or offering to perform–
        1. customary and usual accounting activities, including the provision of accounting, tax, advisory, or other services that are subject to the regulatory authority of a State board of accountancy or a Federal authority; or
        2. other services that are incidental to such customary and usual accounting activities, to the extent that such incidental services are not offered or provided–
          1. by the person separate and apart from such customary and usual accounting activities; or
          2. to consumers who are not receiving such customary and usual accounting activities; or
      2. any person, other than a person described in subparagraph (A)[,] that performs income tax preparation activities for consumers.
    2. Description of activities.
      1. In general. Paragraph (1) shall not apply to any person described in paragraph (1)(A) or (1)(B) to the extent that such person is engaged in any activity which is not a customary and usual accounting activity described in paragraph (1)(A) or incidental thereto but which is the offering or provision of any consumer financial product or service, except to the extent that a person described in paragraph (1)(A) is engaged in an activity which is a customary and usual accounting activity described in paragraph (1)(A), or incidental thereto.
      2. Not a customary and usual accounting activity. For purposes of this subsection, extending or brokering credit is not a customary and usual accounting activity, or incidental thereto.
      3. Rule of construction. For purposes of subparagraphs (A) and (B), a person described in paragraph (1)(A) shall not be deemed to be extending credit, if such person is only extending credit directly to a consumer, exclusively for the purpose of enabling such consumer to purchase services described in clause (i) or (ii) of paragraph (1)(A) directly from such person, and such credit is–
        1. not subject to a finance charge; and
        2. not payable by written agreement in more than 4 installments.
      4. Other limitations. Paragraph (1) does not apply to any person described in paragraph (1)(A) or (1)(B) that is otherwise subject to any enumerated consumer law or any law for which authorities are transferred under subtitle F or H.
  5. Exclusion for practice of law.
    1. In general. Except as provided under paragraph (2), the Bureau may not exercise any supervisory or enforcement authority with respect to an activity engaged in by an attorney as part of the practice of law under the laws of a State in which the attorney is licensed to practice law.
    2. Rule of construction. Paragraph (1) shall not be construed so as to limit the exercise by the Bureau of any supervisory, enforcement, or other authority regarding the offering or provision of a consumer financial product or service described in any subparagraph of section 1002(5) [12 USCS § 5481(5)]
      1. that is not offered or provided as part of, or incidental to, the practice of law, occurring exclusively within the scope of the attorney-client relationship; or
      2. that is otherwise offered or provided by the attorney in question with respect to any consumer who is not receiving legal advice or services from the attorney in connection with such financial product or service.
    3. Existing authority. Paragraph (1) shall not be construed so as to limit the authority of the Bureau with respect to any attorney, to the extent that such attorney is otherwise subject to any of the enumerated consumer laws or the authorities transferred under subtitle F or H.
  6. Exclusion for persons regulated by a State insurance regulator.
    1. In general. No provision of this title shall be construed as altering, amending, or affecting the authority of any State insurance regulator to adopt rules, initiate enforcement proceedings, or take any other action with respect to a person regulated by a State insurance regulator. Except as provided in paragraph (2), the Bureau shall have no authority to exercise any power to enforce this title with respect to a person regulated by a State insurance regulator.
    2. Description of activities. Paragraph (1) does not apply to any person described in such paragraph to the extent that such person is engaged in the offering or provision of any consumer financial product or service or is otherwise subject to any enumerated consumer law or any law for which authorities are transferred under subtitle F or H.
    3. State insurance authority under Gramm-Leach-Bliley. Notwithstanding paragraph (2), the Bureau shall not exercise any authorities that are granted a State insurance authority under section 505(a)(6) of the Gramm-Leach-Bliley Act [15 USCS § 6805(a)(6)] with respect to a person regulated by a State insurance authority.
  7. Exclusion for employee benefit and compensation plans and certain other arrangements under the Internal Revenue Code of 1986.
    1. Preservation of authority of other agencies. No provision of this title shall be construed as altering, amending, or affecting the authority of the Secretary of the Treasury, the Secretary of Labor, or the Commissioner of Internal Revenue to adopt regulations, initiate enforcement proceedings, or take any actions with respect to any specified plan or arrangement.
    2. Activities not constituting the offering or provision of any consumer financial product or service. For purposes of this title, a person shall not be treated as having engaged in the offering or provision of any consumer financial product or service solely because such person is–
      1. a specified plan or arrangement;
      2. engaged in the activity of establishing or maintaining, for the benefit of employees of such person (or for members of an employee organization), any specified plan or arrangement; or
      3. engaged in the activity of establishing or maintaining a qualified tuition program under section 529(b)(1) of the Internal Revenue Code of 1986 [26 USCS § 529(b)(1)] offered by a State or other prepaid tuition program offered by a State.
    3. Limitation on Bureau authority.
      1. In general. Except as provided under subparagraphs (B) and (C), the Bureau may not exercise any rulemaking or enforcement authority with respect to products or services that relate to any specified plan or arrangement.
      2. Bureau action pursuant to agency request.
        1. Agency request. The Secretary and the Secretary of Labor may jointly issue a written request to the Bureau regarding implementation of appropriate consumer protection standards under this title with respect to the provision of services relating to any specified plan or arrangement.
        2. Agency response. In response to a request by the Bureau, the Secretary and the Secretary of Labor shall jointly issue a written response, not later than 90 days after receipt of such request, to grant or deny the request of the Bureau regarding implementation of appropriate consumer protection standards under this title with respect to the provision of services relating to any specified plan or arrangement.
        3. Scope of bureau action. Subject to a request or response pursuant to clause (i) or clause (ii) by the agencies made under this subparagraph, the Bureau may exercise rulemaking authority, and may act to enforce a rule prescribed pursuant to such request or response, in accordance with the provisions of this title. A request or response made by the Secretary and the Secretary of Labor under this subparagraph shall describe the basis for, and scope of, appropriate consumer protection standards to be implemented under this title with respect to the provision of services relating to any specified plan or arrangement.
      3. Description of products or services. To the extent that a person engaged in providing products or services relating to any specified plan or arrangement is subject to any enumerated consumer law or any law for which authorities are transferred under subtitle F or H, subparagraph (A) shall not apply with respect to that law.
    4. Specified plan or arrangement. For purposes of this subsection, the term “specified plan or arrangement” means any plan, account, or arrangement described in section 220, 223, 401(a), 403(a), 403(b), 408, 408A, 529, 529A, or 530 of the Internal Revenue Code of 1986 [26 USCS § 220, 223, 401(a), 403(a), 403(b), 408, 408A, 529, 529A, or 530], or any employee benefit or compensation plan or arrangement, including a plan that is subject to title I of the Employee Retirement Income Security Act of 1974 [29 USCS §§ 1001 et seq.], or any prepaid tuition program offered by a State.
  8. Persons regulated by a State securities commission.
    1. In general. No provision of this title shall be construed as altering, amending, or affecting the authority of any securities commission (or any agency or office performing like functions) of any State to adopt rules, initiate enforcement proceedings, or take any other action with respect to a person regulated by any securities commission (or any agency or office performing like functions) of any State. Except as permitted in paragraph (2) and subsection (f), the Bureau shall have no authority to exercise any power to enforce this title with respect to a person regulated by any securities commission (or any agency or office performing like functions) of any State, but only to the extent that the person acts in such regulated capacity.
    2. Description of activities. Paragraph (1) shall not apply to any person to the extent such person is engaged in the offering or provision of any consumer financial product or service, or is otherwise subject to any enumerated consumer law or any law for which authorities are transferred under subtitle F or H.
  9. Exclusion for persons regulated by the Commission.
    1. In general. No provision of this title may be construed as altering, amending, or affecting the authority of the Commission to adopt rules, initiate enforcement proceedings, or take any other action with respect to a person regulated by the Commission. The Bureau shall have no authority to exercise any power to enforce this title with respect to a person regulated by the Commission.
    2. Consultation and coordination. Notwithstanding paragraph (1), the Commission shall consult and coordinate, where feasible, with the Bureau with respect to any rule (including any advance notice of proposed rulemaking) regarding an investment product or service that is the same type of product as, or that competes directly with, a consumer financial product or service that is subject to the jurisdiction of the Bureau under this title or under any other law. In carrying out this paragraph, the agencies shall negotiate an agreement to establish procedures for such coordination, including procedures for providing advance notice to the Bureau when the Commission is initiating a rulemaking.
  10. Exclusion for persons regulated by the Commodity Futures Trading Commission.
    1. In general. No provision of this title shall be construed as altering, amending, or affecting the authority of the Commodity Futures Trading Commission to adopt rules, initiate enforcement proceedings, or take any other action with respect to a person regulated by the Commodity Futures Trading Commission. The Bureau shall have no authority to exercise any power to enforce this title with respect to a person regulated by the Commodity Futures Trading Commission.
    2. Consultation and coordination. Notwithstanding paragraph (1), the Commodity Futures Trading Commission shall consult and coordinate with the Bureau with respect to any rule (including any advance notice of proposed rulemaking) regarding a product or service that is the same type of product as, or that competes directly with, a consumer financial product or service that is subject to the jurisdiction of the Bureau under this title or under any other law.
  11. Exclusion for persons regulated by the Farm Credit Administration.
    1. In general. No provision of this title shall be construed as altering, amending, or affecting the authority of the Farm Credit Administration to adopt rules, initiate enforcement proceedings, or take any other action with respect to a person regulated by the Farm Credit Administration. The Bureau shall have no authority to exercise any power to enforce this title with respect to a person regulated by the Farm Credit Administration.
    2. Definition. For purposes of this subsection, the term “person regulated by the Farm Credit Administration” means any Farm Credit System institution that is chartered and subject to the provisions of the Farm Credit Act of 1971 (12 U.S.C. 2001 et seq.).
  12. Exclusion for activities relating to charitable contributions.
    1. In general. The Director and the Bureau may not exercise any rulemaking, supervisory, enforcement, or other authority, including authority to order penalties, over any activities related to the solicitation or making of voluntary contributions to a tax-exempt organization as recognized by the Internal Revenue Service, by any agent, volunteer, or representative of such organizations to the extent the organization, agent, volunteer, or representative thereof is soliciting or providing advice, information, education, or instruction to any donor or potential donor relating to a contribution to the organization.
    2. Limitation. The exclusion in paragraph (1) does not apply to other activities not described in paragraph (1) that are the offering or provision of any consumer financial product or service, or are otherwise subject to any enumerated consumer law or any law for which authorities are transferred under subtitle F or H.
  13. Insurance. The Bureau may not define as a financial product or service, by regulation or otherwise, engaging in the business of insurance.
  14. Limited authority of the Bureau. Notwithstanding subsections (a) through (h) and (l), a person subject to or described in one or more of such provisions—
    1. may be a service provider; and
    2. may be subject to requests from, or requirements imposed by, the Bureau regarding information in order to carry out the responsibilities and functions of the Bureau and in accordance with section 1022, 1052, or 1053 [12 USCS § 5512, 5562, or 5563].
  15. No authority to impose usury limit. No provision of this title shall be construed as conferring authority on the Bureau to establish a usury limit applicable to an extension of credit offered or made by a covered person to a consumer, unless explicitly authorized by law.
  16. Attorney General. No provision of this title, including section 1024(c)(1) [12 USCS § 5514(c)(1)], shall affect the authorities of the Attorney General under otherwise applicable provisions of law.
  17. Secretary of the Treasury. No provision of this title shall affect the authorities of the Secretary, including with respect to prescribing rules, initiating enforcement proceedings, or taking other actions with respect to a person that performs income tax preparation activities for consumers.
  18. Deposit insurance and share insurance. Nothing in this title shall affect the authority of the Corporation under the Federal Deposit Insurance Act [12 USCS §§ 1811 et seq.] or the National Credit Union Administration Board under the Federal Credit Union Act [12 USCS §§ 1751 et seq.] as to matters related to deposit insurance and share insurance, respectively.
  19. Fair Housing Act. No provision of this title shall be construed as affecting any authority arising under the Fair Housing Act [42 USCS §§ 3601 et seq.].

 

12 U.S.C. § 5519 Exclusion for auto dealers
  1. Sale, servicing, and leasing of motor vehicles excluded. Except as permitted in subsection (b), the Bureau may not exercise any rulemaking, supervisory, enforcement or any other authority, including any authority to order assessments, over a motor vehicle dealer that is predominantly engaged in the sale and servicing of motor vehicles, the leasing and servicing of motor vehicles, or both.
  2. Certain functions excepted. Subsection (a) shall not apply to any person, to the extent that such person–
    1. provides consumers with any services related to residential or commercial mortgages or self-financing transactions involving real property;
    2. operates a line of business–
      1. that involves the extension of retail credit or retail leases involving motor vehicles; and
      2. in which–
        1. the extension of retail credit or retail leases are provided directly to consumers; and
        2. the contract governing such extension of retail credit or retail leases is not routinely assigned to an unaffiliated third party finance or leasing source; or
    3. offers or provides a consumer financial product or service not involving or related to the sale, financing, leasing, rental, repair, refurbishment, maintenance, or other servicing of motor vehicles, motor vehicle parts, or any related or ancillary product or service.
  3. Preservation of authorities of other agencies. Except as provided in subsections (b) and (d), nothing in this title, including subtitle F [12 USCS §§ 5581 et seq.], shall be construed as modifying, limiting, or superseding the operation of any provision of Federal law, or otherwise affecting the authority of the Board of Governors, the Federal Trade Commission, or any other Federal agency, with respect to a person described in subsection (a).
  4. Federal Trade Commission authority. Notwithstanding section 18 of the Federal Trade Commission Act [15 USCS § 57a], the Federal Trade Commission is authorized to prescribe rules under sections 5 and 18(a)(1)(B) of the Federal Trade Commission Act [15 USCS §§ 45 and 57a(a)(1)(B)].[,] in accordance with section 553 of title 5, United States Code, with respect to a person described in subsection (a).
  5. Coordination with Office of Service Member Affairs. The Board of Governors and the Federal Trade Commission shall coordinate with the Office of Service Member Affairs, to ensure that–
    1. service members and their families are educated and empowered to make better informed decisions regarding consumer financial products and services offered by motor vehicle dealers, with a focus on motor vehicle dealers in the proximity of military installations; and
    2. complaints by service members and their families concerning such motor vehicle dealers are effectively monitored and responded to, and where appropriate, enforcement action is pursued by the authorized agencies.
  6. Definitions. For purposes of this section, the following definitions shall apply:
    1. Motor vehicle. The term “motor vehicle” means–
      1. any self-propelled vehicle designed for transporting persons or property on a street, highway, or other road;
      2. recreational boats and marine equipment;
      3. motorcycles;
      4. motor homes, recreational vehicle trailers, and slide-in campers, as those terms are defined in sections 571.3 and 575.103 (d) of title 49, Code of Federal Regulations, or any successor thereto; and
      5. other vehicles that are titled and sold through dealers.
    2. Motor vehicle dealer. The term “motor vehicle dealer” means any person or resident in the United States, or any territory of the United States, who–
      1. is licensed by a State, a territory of the United States, or the District of Columbia to engage in the sale of motor vehicles; and
      2. takes title to, holds an ownership in, or takes physical custody of motor vehicles.