Credit Cards, Rating, Repair Can a judge enforce FTC fines on a creditor in a small claims case?

[Lionel]

Jurisdiction

Illinois

I have a small claims case in an Illinois district court against a bank for violating
15 U.S.C. § 1681i. In addition to the civil fines outlined in 15 U.S.C. § 1681s(c)(1)(B),
can a judge also apply FTC fines under 15 U.S.C. § 1681s(a)(2)(A)?

Thanks in advanced.

 

[army judge]

I have a small claims case in an Illinois district court against a bank for violating
15 U.S.C. § 1681i. In addition to the civil fines outlined in 15 U.S.C. § 1681s(c)(1)(B),
can a judge also apply FTC fines under 15 U.S.C. § 1681s(a)(2)(A)?

Thanks in advanced.

If you're represented by counsel, you should ONLY be discussing your legal concerns with your attorney.

If you're representing yourself "pro se" and aren't clear about aspects of your case, it would behoove you to retain counsel.

Seeking free legal advice relative to important legal matters is most unwise.

 

[Tax Counsel]

I have a small claims case in an Illinois district court against a bank for violating
15 U.S.C. § 1681i. In addition to the civil fines outlined in 15 U.S.C. § 1681s(c)(1)(B),
can a judge also apply FTC fines under 15 U.S.C. § 1681s(a)(2)(A)?

Thanks in advanced.

A state small claims court cannot impose those fines. The statute you cited details powers Congress gave to the Federal Trade Commission (FTC) FTC, and it is the FTC or an appropriate state agency that would have pursue any violations. The Act does allow your state government to bring appropriate actions for violations of the section you mentioned. Private indivduals cannot bring actions for the fines you are asking about and if those fines did apply, the money goes to the to government, not to you.

Moreover, the FTC does not regulate banks. The vast majority of banks are supervised by one of three federal agencies as the primary supervisor: the Federal Deposit and Insurance Corporation (FDIC), the Office of the Comptroller of the Currency (OCC) or the Federal Reserve. Those few banks that do not have any of those three agencies as its primary supervisor is handled by the state in which the bank is chartered. Savings and loan Associations, thift institutions, and credit unions have some different laws that apply to them and have different regulating agencies than banks do.

There are several factors that determine which regulator is the primary supervisor of the bank you are dealing with, and not knowing the bank I couldn't possibly guess which one you'd need to make a complaint with and exactly which laws apply to it. Banking is a highly regulated activity and is not generally regulated by general consumer protection agencies like the FTC or the federal Consumer Financial Protection Bureau (CFPB), although those agencies often have information to help guide you to the right place to make your complaint.

You may find that the small claims court will kick out your complaint because you are not the proper party to bring such a suit and/or that the court lacks jurisdiction. Since you already filed the court complaint you'll just have see how the court deals with it. However, if your complaint raises issues that also apply under state law, the small claims court probably can deal with that and that may be your best route to go for a fast resolution to this.

No harm, though, in making a complaint with the right bank supervising agency and see if it will do anything for you. You can also ask your state consumer protection or banking regulation agency if it will assist you in determining what agency is the right one you need to go to.

 

[zddoodah]

In addition to what "Tax Counsel" wrote, I'm at a loss to understand how a bank could violation 15 U.S.C. section 1681i. That section is part of the Fair Credit Reporting Act and details the procedure that credit reporting agencies must follow in the event a consumer disputes an item on a credit report. Obviously, a bank is not a credit reporting agency, and I cannot see anything in section 1681i that imposes any obligations on a creditor.