U.S Code last checked for updates: Apr 29, 2024
All TitlesTitle 12Chapter 53Subchapter VPart B
§ 5512.
Rulemaking authority
(a)
In general
(b)
Rulemaking, orders, and guidance
(1)
General authority
(2)
Standards for rulemaking
In prescribing a rule under the Federal consumer 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 consumers to consumer financial products or services resulting from such rule; and
(ii)
the impact of proposed rules on covered persons, as described in section 5516 of this title, and the impact on consumers in rural areas;
(B)
the Bureau shall consult with the appropriate prudential regulators or other Federal agencies prior to proposing a rule and during the comment process regarding consistency with prudential, market, or systemic objectives administered by such agencies; and
(C)
if, during the consultation process described 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 include 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 procedures under section 5513 of this title that may apply to any rule prescribed by the Bureau.
(3)
Exemptions
(A)
In general
(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 engages; and
(iii)
existing provisions of law which are applicable to the consumer financial product or service and the extent to which such provisions provide consumers with adequate protections.
(4)
Exclusive rulemaking authority
(A)
In general
(B)
Deference
(c)
Monitoring
(1)
In general
(2)
Considerations
In allocating its resources to perform the monitoring required by this section, the Bureau may consider, among other factors—
(A)
likely risks and costs to consumers associated with buying or using a type of consumer 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 provision of a consumer financial product or service;
(E)
the extent, if any, to which the risks of a consumer financial product or service may disproportionately affect traditionally underserved 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
(B)
Confidential information
(4)
Collection of information
(A)
In general
(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 examination reports concerning covered persons or service providers, consumer complaints, voluntary surveys and voluntary interviews of consumers, surveys and interviews with covered persons and service providers, and review of available databases; and
(ii)
require covered persons and service providers participating in consumer financial services markets 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 questions, furnishing information described in paragraph (4), as necessary for the Bureau to fulfill the monitoring, assessment, and reporting responsibilities imposed by Congress.
(C)
Limitation
(5)
Limited information gathering
(6)
Confidentiality rules
(A)
Rulemaking
(B)
Access by the Bureau to reports of other regulators
(i)
Examination and financial condition reports
(ii)
Provision of other reports to the Bureau
(C)
Access by other regulators to reports of the Bureau
(i)
Examination reports
(ii)
Provision of other reports to other regulators
(7)
Registration
(A)
In general
(B)
Registration information
(C)
Consultation with State agencies
(8)
Privacy considerations
(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 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
(d)
Assessment of significant rules
(1)
In general
(2)
Reports
(3)
Public comment required
(Pub. L. 111–203, title X, § 1022, July 21, 2010, 124 Stat. 1980.)
cite as: 12 USC 5512
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