12 U.S.C. § 5551 | Relation to State law

(a)

In general

(1)

Rule of construction

1 See References in Text note below.

1 1 1This title, other than sections 1044 through 1048, may not be construed as annulling, altering, or affecting, or exempting any person subject to the provisions of this title  from complying with, the statutes, regulations, orders, or interpretations in effect in any State, except to the extent that any such provision of law is inconsistent with the provisions of this title, and then only to the extent of the inconsistency.

(2)

Greater protection under State law

¹¹¹For purposes of this subsection, a statute, regulation, order, or interpretation in effect in any State is not inconsistent with the provisions of this title  if the protection that such statute, regulation, order, or interpretation affords to consumers is greater than the protection provided under this title. A determination regarding whether a statute, regulation, order, or interpretation in effect in any State is inconsistent with the provisions of this title  may be made by the Bureau on its own motion or in response to a nonfrivolous petition initiated by any interested person.

(b)

Relation to other provisions of enumerated consumer laws that relate to State law

¹¹No provision of this title, except as provided in section 1083, shall be construed as modifying, limiting, or superseding the operation of any provision of an enumerated consumer law that relates to the application of a law in effect in any State with respect to such Federal law.

(c)

Additional consumer protection regulations in response to State action

(1)

Notice of proposed rule required

The Bureau shall issue a notice of proposed rulemaking whenever a majority of the States has enacted a resolution in support of the establishment or modification of a consumer protection regulation by the Bureau.

(2)

Bureau considerations required for issuance of final regulation

Before prescribing a final regulation based upon a notice issued pursuant to paragraph (1), the Bureau shall take into account whether—

(A)

the proposed regulation would afford greater protection to consumers than any existing regulation;

(B)

the intended benefits of the proposed regulation for consumers would outweigh any increased costs or inconveniences for consumers, and would not discriminate unfairly against any category or class of consumers; and

(C)

a Federal banking agency has advised that the proposed regulation is likely to present an unacceptable safety and soundness risk to insured depository institutions.

(3)

Explanation of considerations

The Bureau—

(A)

shall include a discussion of the considerations required in paragraph (2) in the Federal Register notice of a final regulation prescribed pursuant to this subsection; and

(B)

whenever the Bureau determines not to prescribe a final regulation, shall publish an explanation of such determination in the Federal Register, and provide a copy of such explanation to each State that enacted a resolution in support of the proposed regulation, the Committee on Banking, Housing, and Urban Affairs of the Senate, and the Committee on Financial Services of the House of Representatives.

(4)

Reservation of authority

¹No provision of this subsection shall be construed as limiting or restricting the authority of the Bureau to enhance consumer protection standards established pursuant to this title  in response to its own motion or in response to a request by any other interested person.

(5)

Rule of construction

No provision of this subsection shall be construed as exempting the Bureau from complying with subchapter II of chapter 5 of title 5.

(6)

Definition

For purposes of this subsection, the term “consumer protection regulation” means a regulation that the Bureau is authorized to prescribe under the Federal consumer financial laws.

Pub. L. 111–203, title X, § 1041July 21, 2010124 Stat. 2011(, , .)

Editorial Notes

References in Text

Pub. L. 111–203July 21, 2010124 Stat. 1955 section 5301 of this titleThis title, referred to in subsecs. (a), (b), and (c)(4), is title X of , , , known as the Consumer Financial Protection Act of 2010, which enacted this subchapter 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 and Tables.

Pub. L. 111–203Sections 1044 through 1048, referred to in subsec. (a)(1), are sections 1044 to 1048 of , which enacted and amended sections 25b and 1465 of this title and enacted provisions set out as a note below.

section 1083 of Pub. L. 111–203 section 3802 of this titleSection 1083, referred to in subsec. (b), is , which amended sections 3802 and 3803 of this title and enacted provisions set out as notes under .

Statutory Notes and Related Subsidiaries

Effective Date

Pub. L. 111–203, title X, § 1048July 21, 2010124 Stat. 2018

Pub. L. 111–203“This subtitle [subtitle D (§§ 1041–1048) of title X of , enacting this part and enacting and amending sections 25b and 1465 of this title] shall become effective on the designated transfer date.”

, , , provided that:

section 5481(9) of this title section 5582 of this title[The term “designated transfer date” is defined in as the date established under .]