Sec. 3. Definitions
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/bill/115/hr/3937/ih/section-3·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
For purposes of this Act: The term banking organization means any bank, savings association, bank holding company, or savings and loan holding company, and includes any subsidiary or affiliate of a bank holding company or savings and loan holding company. The term Board of Governors means the Board of Governors of the Federal Reserve System. The term Comptroller means the Comptroller of the Currency. The term Consumer Bureau means the Bureau of Consumer Financial Protection. The term Corporation means the Board of Directors of the Federal Deposit Insurance Corporation.
The term Federal consumer financial law has the meaning given that term under section 1002 of the Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5481 ). The term Federal consumer protection law means— the Federal consumer financial law; the Fair Housing Act; the Federal Trade Commission Act; section 987 of title 10, United States Code (commonly known as the Military Lending Act ); the Servicemembers Civil Relief Act; and any regulation issued under a law described under subparagraph (A), (B), (C), (D), or (E).
The term Federal prudential banking agencies means the Board of Governors, the Comptroller, and the Corporation. The term foreign bank has the meaning given that term under section 1(b) of the International Banking Act of 1978 ( 12 U.S.C. 3101(b) ). The term global systemically important bank holding company means— a bank holding company that has been identified by the Board of Governors as a global systemically important bank holding company pursuant to section 217.402 of title 12, Code of Federal Regulations; and a global systemically important foreign banking organization, as defined under section 252.2 of title 12, Code of Federal Regulations.
A company or organization described under clause
(i)or
(ii)of subparagraph
(A)on the date of the enactment of this Act shall be deemed a global systemically important bank holding company for purposes of this Act. The term pattern or practice of unsafe or unsound banking practices and other violations related to consumer harm means engaging in all of the following activities, to the extent each activity was discovered or occurred at least once in the 10 years preceding the date of the enactment of this Act: Having unsafe or unsound practices in the institution’s risk management and oversight of the institution’s sales practices, as evidenced by— an institution lacking an enterprise-wide sales practices oversight program that enables the institution to adequately monitor sales practices to prevent and detect unsafe or unsound sales practices and mitigate risks that may result from such unsafe and unsound sales practices; and an institution lacking a comprehensive customer complaint monitoring process that— enables the institution to assess customer complaint activity across the bank; adequately monitors, manages, and reports on customer complaints; and analyzes and understands the potential risks posed by the institution’s sales practices. Engaging in unsafe and unsound sales practices, as evidenced by the institution— opening more than one million unauthorized deposit, credit card, or other accounts; performing unauthorized transfers of customer funds; and performing unauthorized credit inquiries for purposes of the conduct described in clause
(i)or (ii). Lacking adequate oversight of third-party vendors for purposes of risk-mitigation, to prevent abusive and deceptive practices in the vendor’s provision of consumer products or services. Having deficient policies and procedures for sharing customers’ personal identifiable information with third-party vendors for litigation purposes that led to inadvertent disclosure of such information to unintended parties. Violating Federal consumer financial laws with respect to mortgage loans, including charges of hidden fees and unauthorized or improper disclosures tied to home mortgage loan modifications. Engaging in unsafe or unsound banking practices related to residential mortgage loan servicing and foreclosure processing. Violating the Servicemembers Civil Relief Act. The term pattern or practice of violations of Federal consumer protection laws means— a pattern or practice of unsafe or unsound banking practices and other violations related to consumer harm; and such other pattern or practice as the Director of the Consumer Bureau shall, in consultation with the Comptroller, the Board of Governors, and the Corporation, establish by regulation. Eligible activities that may be included in any pattern or practice described under subparagraph
(A)are those that were discovered or occurred in the 10 years preceding any determination made under section 101 or section 201. Not later than the end of the 1-year period beginning on the date of the enactment of this Act, the Director of the Consumer Bureau shall issue final regulations to carry out subparagraph (A)(ii). The term State means the several States, the District of Columbia, and any other territory or possession of the United States. The terms agency , branch , commercial lending company , and representative office have the meanings given those terms, respectively, under section 1(b) of the International Banking Act of 1978 ( 12 U.S.C. 3101(b) ). The terms affiliate , appropriate Federal banking agency , depository institution , Federal savings association , insured depository institution , national bank , savings association , subsidiary , State depository institution , and State member bank have the meaning given those terms, respectively, under section 3 of the Federal Deposit Insurance Act ( 12 U.S.C. 1813 ).
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