12 U.S.C. § 5512 — Rulemaking authority

Page 1955 TITLE 12—BANKS AND BANKING § 5512 tion], or the amendments made by this subtitle, shall be construed to require the Bureau of Consumer Finan- cial Protection to collect or make publicly available additional information under the Consumer Financial Protection Act of 2010 (12 U.S.C. 5481 et seq.), beyond in- formation that was collected or made publicly avail- able under that Act, as of the day before the date of en- actment of this Act [Dec. 23, 2022].’’ § 5499. Open data publication All public data assets published by the Bureau shall be— (1) made available as an open Government data asset (as defined in section 3502 of title 44); (2) freely available for download; (3) rendered in a human-readable format; and (4) accessible via application programming interface where appropriate. (Pub. L. 111–203, title X, § 1019, as added Pub. L. 117–263, div. E, title LVIII, § 5851(a)(2), Dec. 23, 2022, 136 Stat. 3433.) Statutory Notes and Related Subsidiaries RULE OF CONSTRUCTION REGARDING NO NEW DISCLOSURE REQUIREMENTS Enactment of section not to be construed to require certain additional information to be collected or dis- closed, see section 5853 of Pub. L. 117–263, set out as a note under section 5498 of this title. PART B—GENERAL POWERS OF THE BUREAU § 5511. Purpose, objectives, and functions (a) Purpose The Bureau shall seek to implement and, where applicable, enforce Federal consumer fi- nancial law consistently for the purpose of en- suring that all consumers have access to mar- kets for consumer financial products and serv- ices and that markets for consumer financial products and services are fair, transparent, and competitive. (b) Objectives The Bureau is authorized to exercise its au- thorities under Federal consumer financial law for the purposes of ensuring that, with respect to consumer financial products and services— (1) consumers are provided with timely and understandable information to make respon- sible decisions about financial transactions; (2) consumers are protected from unfair, de- ceptive, or abusive acts and practices and from discrimination; (3) outdated, unnecessary, or unduly burden- some regulations are regularly identified and addressed in order to reduce unwarranted reg- ulatory burdens; (4) Federal consumer financial law is en- forced consistently, without regard to the sta- tus of a person as a depository institution, in order to promote fair competition; and (5) markets for consumer financial products and services operate transparently and effi- ciently to facilitate access and innovation. (c) Functions The primary functions of the Bureau are— (1) conducting financial education programs; (2) collecting, investigating, and responding to consumer complaints; (3) collecting, researching, monitoring, and publishing information relevant to the func- tioning of markets for consumer financial products and services to identify risks to con- sumers and the proper functioning of such markets; (4) subject to sections 5514 through 5516 of this title, supervising covered persons for com- pliance with Federal consumer financial law, and taking appropriate enforcement action to address violations of Federal consumer finan- cial law; (5) issuing rules, orders, and guidance imple- menting Federal consumer financial law; and (6) performing such support activities as may be necessary or useful to facilitate the other functions of the Bureau. (Pub. L. 111–203, title X, § 1021, July 21, 2010, 124 Stat. 1979.) Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 111–203, title X, § 1029A, July 21, 2010, 124 Stat. 2005, provided that: ‘‘This subtitle [subtitle B (§§ 1021–1029A), enacting this part] shall become effec- tive on the designated transfer date, except that sec- tions 1022, 1024, and 1025(e) [12 U.S.C. 5512, 5514, and 5515(e)] shall become effective on the date of enactment of this Act [July 21, 2010].’’ [The term ‘‘designated transfer date’’ is defined in section 5481(9) of this title as the date established under section 5582 of this title.] § 5512. Rulemaking authority (a) In general The Bureau is authorized to exercise its au- thorities under Federal consumer financial law to administer, enforce, and otherwise implement the provisions of Federal consumer financial law. (b) Rulemaking, orders, and guidance (1) General authority The Director may prescribe rules and issue orders and guidance, as may be necessary or appropriate to enable the Bureau to admin- ister and carry out the purposes and objectives of the Federal consumer financial laws, and to prevent evasions thereof. (2) Standards for rulemaking In prescribing a rule under the Federal con- sumer financial laws— (A) the Bureau shall consider— (i) the potential benefits and costs to consumers and covered persons, including the potential reduction of access by con- sumers to consumer financial products or services resulting from such rule; and (ii) the impact of proposed rules on cov- ered persons, as described in section 5516 of this title, and the impact on consumers in rural areas; (B) the Bureau shall consult with the ap- propriate prudential regulators or other Federal agencies prior to proposing a rule and during the comment process regarding consistency with prudential, market, or sys- Page 1956 TITLE 12—BANKS AND BANKING § 5512 1 See References in Text note below. temic objectives administered by such agen- cies; and (C) if, during the consultation process de- scribed in subparagraph (B), a prudential regulator provides the Bureau with a written objection to the proposed rule of the Bureau or a portion thereof, the Bureau shall in- clude in the adopting release a description of the objection and the basis for the Bureau decision, if any, regarding such objection, except that nothing in this clause shall be construed as altering or limiting the proce- dures under section 5513 of this title that may apply to any rule prescribed by the Bu- reau. (3) Exemptions (A) In general The Bureau, by rule, may conditionally or unconditionally exempt any class of covered persons, service providers, or consumer fi- nancial products or services, from any provi- sion of this title,1 or from any rule issued under this title,1 as the Bureau determines necessary or appropriate to carry out the purposes and objectives of this title,1 taking into consideration the factors in subpara- graph (B). (B) Factors In issuing an exemption, as permitted under subparagraph (A), the Bureau shall, as appropriate, take into consideration— (i) the total assets of the class of covered persons; (ii) the volume of transactions involving consumer financial products or services in which the class of covered persons en- gages; and (iii) existing provisions of law which are applicable to the consumer financial prod- uct or service and the extent to which such provisions provide consumers with ade- quate protections. (4) Exclusive rulemaking authority (A) In general Notwithstanding any other provisions of Federal law and except as provided in sec- tion 5581(b)(5) of this title, to the extent that a provision of Federal consumer financial law authorizes the Bureau and another Fed- eral agency to issue regulations under that provision of law for purposes of assuring compliance with Federal consumer financial law and any regulations thereunder, the Bu- reau shall have the exclusive authority to prescribe rules subject to those provisions of law. (B) Deference Notwithstanding any power granted to any Federal agency or to the Council under this title,1 and subject to section 5581(b)(5)(E) of this title, the deference that a court affords to the Bureau with respect to a determina- tion by the Bureau regarding the meaning or interpretation of any provision of a Federal consumer financial law shall be applied as if the Bureau were the only agency authorized to apply, enforce, interpret, or administer the provisions of such Federal consumer fi- nancial law. (c) Monitoring (1) In general In order to support its rulemaking and other functions, the Bureau shall monitor for risks to consumers in the offering or provision of consumer financial products or services, in- cluding developments in markets for such products or services. (2) Considerations In allocating its resources to perform the monitoring required by this section, the Bu- reau may consider, among other factors— (A) likely risks and costs to consumers as- sociated with buying or using a type of con- sumer financial product or service; (B) understanding by consumers of the risks of a type of consumer financial product or service; (C) the legal protections applicable to the offering or provision of a consumer financial product or service, including the extent to which the law is likely to adequately protect consumers; (D) rates of growth in the offering or provi- sion of a consumer financial product or serv- ice; (E) the extent, if any, to which the risks of a consumer financial product or service may disproportionately affect traditionally un- derserved consumers; or (F) the types, number, and other pertinent characteristics of covered persons that offer or provide the consumer financial product or service. (3) Significant findings (A) In general The Bureau shall publish not fewer than 1 report of significant findings of its moni- toring required by this subsection in each calendar year, beginning with the first cal- endar year that begins at least 1 year after the designated transfer date. (B) Confidential information The Bureau may make public such infor- mation obtained by the Bureau under this section as is in the public interest, through aggregated reports or other appropriate for- mats designed to protect confidential infor- mation in accordance with paragraphs (4), (6), (8), and (9). (4) Collection of information (A) In general In conducting any monitoring or assess- ment required by this section, the Bureau shall have the authority to gather informa- tion from time to time regarding the organi- zation, business conduct, markets, and ac- tivities of covered persons and service pro- viders. (B) Methodology In order to gather information described in subparagraph (A), the Bureau may— (i) gather and compile information from a variety of sources, including examina- Page 1957 TITLE 12—BANKS AND BANKING § 5512 tion reports concerning covered persons or service providers, consumer complaints, voluntary surveys and voluntary inter- views of consumers, surveys and inter- views with covered persons and service providers, and review of available data- bases; and (ii) require covered persons and service providers participating in consumer finan- cial services markets to file with the Bu- reau, under oath or otherwise, in such form and within such reasonable period of time as the Bureau may prescribe by rule or order, annual or special reports, or an- swers in writing to specific questions, fur- nishing information described in para- graph (4), as necessary for the Bureau to fulfill the monitoring, assessment, and re- porting responsibilities imposed by Con- gress. (C) Limitation The Bureau may not use its authorities under this paragraph to obtain records from covered persons and service providers par- ticipating in consumer financial services markets for purposes of gathering or ana- lyzing the personally identifiable financial information of consumers. (5) Limited information gathering In order to assess whether a nondepository is a covered person, as defined in section 5481 of this title, the Bureau may require such non- depository to file with the Bureau, under oath or otherwise, in such form and within such reasonable period of time as the Bureau may prescribe by rule or order, annual or special reports, or answers in writing to specific ques- tions. (6) Confidentiality rules (A) Rulemaking The Bureau shall prescribe rules regarding the confidential treatment of information obtained from persons in connection with the exercise of its authorities under Federal consumer financial law. (B) Access by the Bureau to reports of other regulators (i) Examination and financial condition re- ports Upon providing reasonable assurances of confidentiality, the Bureau shall have ac- cess to any report of examination or finan- cial condition made by a prudential regu- lator or other Federal agency having juris- diction over a covered person or service provider, and to all revisions made to any such report. (ii) Provision of other reports to the Bu- reau In addition to the reports described in clause (i), a prudential regulator or other Federal agency having jurisdiction over a covered person or service provider may, in its discretion, furnish to the Bureau any other report or other confidential super- visory information concerning any insured depository institution, credit union, or other entity examined by such agency under authority of any provision of Fed- eral law. (C) Access by other regulators to reports of the Bureau (i) Examination reports Upon providing reasonable assurances of confidentiality, a prudential regulator, a State regulator, or any other Federal agency having jurisdiction over a covered person or service provider shall have ac- cess to any report of examination made by the Bureau with respect to such person, and to all revisions made to any such re- port. (ii) Provision of other reports to other reg- ulators In addition to the reports described in clause (i), the Bureau may, in its discre- tion, furnish to a prudential regulator or other agency having jurisdiction over a covered person or service provider any other report or other confidential super- visory information concerning such person examined by the Bureau under the author- ity of any other provision of Federal law. (7) Registration (A) In general The Bureau may prescribe rules regarding registration requirements applicable to a covered person, other than an insured depos- itory institution, insured credit union, or re- lated person. (B) Registration information Subject to rules prescribed by the Bureau, the Bureau may publicly disclose registra- tion information to facilitate the ability of consumers to identify covered persons that are registered with the Bureau. (C) Consultation with State agencies In developing and implementing registra- tion requirements under this paragraph, the Bureau shall consult with State agencies re- garding requirements or systems (including coordinated or combined systems for reg- istration), where appropriate. (8) Privacy considerations In collecting information from any person, publicly releasing information held by the Bu- reau, or requiring covered persons to publicly report information, the Bureau shall take steps to ensure that proprietary, personal, or confidential consumer information that is pro- tected from public disclosure under section 552(b) or 552a of title 5 or any other provision of law, is not made public under this title.1 (9) Consumer privacy (A) In general The Bureau may not obtain from a covered person or service provider any personally identifiable financial information about a consumer from the financial records of the covered person or service provider, except— (i) if the financial records are reasonably described in a request by the Bureau and Page 1958 TITLE 12—BANKS AND BANKING § 5513 2 So in original. The comma probably should not appear. the consumer provides written permission for the disclosure of such information by the covered person or service provider to the Bureau; or (ii) as may be specifically permitted or required under other applicable provisions of law and in accordance with the Right to Financial Privacy Act of 1978 (12 U.S.C. 3401 et seq.). (B) Treatment of covered person or service provider With respect to the application of any pro- vision of the Right to Financial Privacy Act of 1978,2 to a disclosure by a covered person or service provider subject to this sub- section, the covered person or service pro- vider shall be treated as if it were a ‘‘finan- cial institution’’, as defined in section 1101 of that Act (12 U.S.C. 3401). (d) Assessment of significant rules (1) In general The Bureau shall conduct an assessment of each significant rule or order adopted by the Bureau under Federal consumer financial law. The assessment shall address, among other relevant factors, the effectiveness of the rule or order in meeting the purposes and objec- tives of this title 1 and the specific goals stated by the Bureau. The assessment shall reflect available evidence and any data that the Bu- reau reasonably may collect. (2) Reports The Bureau shall publish a report of its as- sessment under this subsection not later than 5 years after the effective date of the subject rule or order. (3) Public comment required Before publishing a report of its assessment, the Bureau shall invite public comment on recommendations for modifying, expanding, or eliminating the newly adopted significant rule or order. (Pub. L. 111–203, title X, § 1022, July 21, 2010, 124 Stat. 1980.) Editorial Notes REFERENCES IN TEXT This title, where footnoted in subsecs. (b)(3)(A), (4)(B), (c)(8), and (d)(1), is title X of Pub. L. 111–203, July 21, 2010, 124 Stat. 1955, known as the Consumer Finan- cial Protection Act of 2010, which enacted this sub- chapter 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. The Right to Financial Privacy Act of 1978, referred to in subsec. (c)(9)(A)(ii), (B), is title XI of Pub. L. 95–630, Nov. 10, 1978, 92 Stat. 3697, which is classified generally to chapter 35 (§ 3401 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 3401 of this title and Tables. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Section effective July 21, 2010, see section 1029A of Pub. L. 111–203, set out as a note under section 5511 of this title. DESIGNATION OF RURAL AREA Pub. L. 114–94, div. G, title LXXXIX, § 89002, Dec. 4, 2015, 129 Stat. 1799, provided that: ‘‘(a) APPLICATION.—Not later than 90 days after the date of the enactment of this Act [Dec. 4, 2015], the Bu- reau of Consumer Financial Protection shall establish an application process under which a person who lives or does business in a State may, with respect to an area identified by the person in such State that has not been designated by the Bureau as a rural area for purposes of a Federal consumer financial law (as defined under section 1002 of the Consumer Financial Protection Act of 2010 [12 U.S.C. 5481]), apply for such area to be so des- ignated. ‘‘(b) EVALUATION CRITERIA.—When evaluating an ap- plication submitted under subsection (a), the Bureau shall take into consideration the following factors: ‘‘(1) Criteria used by the Director of the Bureau of the Census for classifying geographical areas as rural or urban. ‘‘(2) Criteria used by the Director of the Office of Management and Budget to designate counties as metropolitan or micropolitan or neither. ‘‘(3) Criteria used by the Secretary of Agriculture to determine property eligibility for rural develop- ment programs. ‘‘(4) The Department of Agriculture rural-urban commuting area codes. ‘‘(5) A written opinion provided by the State’s bank supervisor, as defined under section 3(r) of the Fed- eral Deposit Insurance Act (12 U.S.C. 1813(r)). ‘‘(6) Population density. ‘‘(c) RULE OF CONSTRUCTION.—If, at any time prior to the submission of an application under subsection (a), the area subject to review has been designated as nonrural by any Federal agency described under sub- section (b) using any of the criteria described under subsection (b), the Bureau shall not be required to con- sider such designation in its evaluation. ‘‘(d) PUBLIC COMMENT PERIOD.— ‘‘(1) IN GENERAL.—Not later than 60 days after re- ceiving an application submitted under subsection (a), the Bureau shall— ‘‘(A) publish such application in the Federal Reg- ister; and ‘‘(B) make such application available for public comment for not fewer than 90 days. ‘‘(2) LIMITATION ON ADDITIONAL APPLICATIONS.— Nothing in this section shall be construed to require the Bureau, during the public comment period with respect to an application submitted under subsection (a), to accept an additional application with respect to the area that is the subject of the initial applica- tion. ‘‘(e) DECISION ON DESIGNATION.—Not later than 90 days after the end of the public comment period under subsection (d)(1) for an application, the Bureau shall— ‘‘(1) grant or deny such application, in whole or in part; and ‘‘(2) publish such grant or denial in the Federal Register, along with an explanation of what factors the Bureau relied on in making such determination. ‘‘(f) SUBSEQUENT APPLICATIONS.—A decision by the Bureau under subsection (e) to deny an application for an area to be designated as a rural area shall not pre- clude the Bureau from accepting a subsequent applica- tion submitted under subsection (a) for such area to be so designated, so long as such subsequent application is made after the end of the 90-day period beginning on the date that the Bureau denies the application under subsection (e). ‘‘(g) SUNSET.—This section shall cease to have any force or effect after the end of the 2-year period begin- ning on the date of the enactment of this Act.’’ § 5513. Review of Bureau regulations (a) Review of Bureau regulations On the petition of a member agency of the Council, the Council may set aside a final regu-