Sec. 105. Specific requirements relating to covered banks
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Any covered bank that holds, administers, or manages funds on behalf of any unincorporated person in a payments account, or otherwise accepts funds on deposit or for the purpose of providing public depository accounts services— may not— impose any fees, minimum balances, or maximum balances on such payments accounts or public depository accounts; or include on such payments accounts or public depository accounts; shall— prominently brand any such payments account or public depository account as a public bank account in all account statements, marketing materials, and other communications of the public bank; and provide such account holders with reasonable protection against losses caused by fraud or security breaches, as determined by the Corporation or the Director of the Bureau of Consumer Financial Protection, or both; and may only close or restrict access to such payments accounts or public depository accounts on the basis of the mandate of the covered bank.
Notwithstanding any provision of law, the annual percentage rate applicable to any extension of credit by a covered bank may not exceed the lesser of— 15 percent on unpaid balances, inclusive of all finance charges; or the maximum rate permitted by the laws of the State in which the consumer resides. Any fees that are not considered finance charges under paragraph (1), including fees for ancillary products and services, may not— exceed the total amount of finance charges assessed; and be imposed in such a way as to evade or frustrate the purpose of limiting the total interest and related costs that may be charged in relation to any lending product issued by covered banks under this Act.
The taking, receiving, reserving, or charging of an annual percentage rate or fee greater than that permitted by paragraph (1), when knowingly done, shall be a violation of this subsection, and a forfeiture of the entire interest which the note, bill, or other evidence of the obligation carries with it, or which has been agreed to be paid thereon. With respect to a person charging interest, a finance charge, or a fee greater than that permitted by paragraph (1), the person paying such interest, finance charge, or fee may notify the Bureau of Consumer Financial Protection, and the Bureau of Consumer Financial Protection shall take such enforcement actions as the Director of the Bureau of Consumer Financial Protection determines appropriate.
If a person notifies the Bureau of Consumer Financial Protection under clause (i), and the Bureau of Consumer Financial Protection takes no action with respect to such notice during the 60-day period following such notice, such person may bring an action in a Federal district court to recover the entire amount of interest, finance charges, or fees paid. Any creditor who violates this subsection shall be subject to the provisions of section 130(a) of the Truth in Lending Act ( 15 U.S.C. 1640(a) ).
In establishing and maintaining personal accounts, each covered bank shall comply with— section 21 of the Federal Deposit Insurance Act ( 12 U.S.C. 1829b ); section 123 of Public Law 91–508 ; and subchapter II of chapter 53 of title 31, United States Code. Each covered bank shall make publicly available an annual report on the activities of such covered bank, including recipients of financial services, sources of funding, financial reporting, and evaluation of the effectiveness of the covered bank’s services in achieving the public purposes for which it was chartered, as well as any other purposes, goals, and targets under this Act or other law or regulation.
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- Pub. L. 91-508
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Sec. 105
Specific requirements relating to covered banks
Pub. L.Pub. L. 91-508
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