12 C.F.R. § 1002.16

Enforcement, penalties and liabilities

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(a) Administrative enforcement. (1) As set forth more fully in section 704 of the Act, administrative enforcement of the Act and this part regarding certain creditors is assigned to the Comptroller of the Currency, Board of Governors of the Federal Reserve System, Board of Directors of the Federal Deposit Insurance Corporation, National Credit Union Administration, Surface Transportation Board, Civil Aeronautics Board, Secretary of Agriculture, Farm Credit Administration, Securities and Exchange Commission, Small Business Administration, Secretary of Transportation, and Bureau of Consumer Financial Protection.

(2) Except to the extent that administrative enforcement is specifically assigned to some government agency other than the Bureau, and subject to subtitle B of the Consumer Financial Protection Act of 2010, the Federal Trade Commission is authorized to enforce the requirements imposed under the Act and this part.

(b) Penalties and liabilities. (1) Sections 702(g) and 706(a) and (b) of the Act provide that any creditor that fails to comply with a requirement imposed by the Act or this part is subject to civil liability for actual and punitive damages in individual or class actions. Pursuant to sections 702(g) and 704(b), (c), and (d) of the Act, violations of the Act or this part also constitute violations of other Federal laws. Liability for punitive damages can apply only to nongovernmental entities and is limited to $10,000 in individual actions and the lesser of $500,000 or 1 percent of the creditor's net worth in class actions. Section 706(c) provides for equitable and declaratory relief and section 706(d) authorizes the awarding of costs and reasonable attorney's fees to an aggrieved applicant in a successful action.

(2) As provided in section 706(f) of the Act, a civil action under the Act or this part may be brought in the appropriate United States district court without regard to the amount in controversy or in any other court of competent jurisdiction within five years after the date of the occurrence of the violation, or within one year after the commencement of an administrative enforcement proceeding or of a civil action brought by the Attorney General of the United States within five years after the alleged violation.

(3) If an agency responsible for administrative enforcement is unable to obtain compliance with the Act or this part, it may refer the matter to the Attorney General of the United States. If the Bureau, the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, or the National Credit Union Administration has reason to believe that one or more creditors have engaged in a pattern or practice of discouraging or denying applications in violation of the Act or this part, the agency shall refer the matter to the Attorney General. If the agency has reason to believe that one or more creditors violated section 701(a) of the Act, the agency may refer a matter to the Attorney General.

(4) On referral, or whenever the Attorney General has reason to believe that one or more creditors have engaged in a pattern or practice in violation of the Act or this part, the Attorney General may bring a civil action for such relief as may be appropriate, including actual and punitive damages and injunctive relief.

(5) If the Comptroller of the Currency, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, or the National Credit Union Administration has reason to believe (as a result of a consumer complaint, a consumer compliance examination, or some other basis) that a violation of the Act or this part has occurred which is also a violation of the Fair Housing Act, and the matter is not referred to the Attorney General, the agency shall:

(i) Notify the Secretary of Housing and Urban Development; and

(ii) Inform the applicant that the Secretary of Housing and Urban Development has been notified and that remedies may be available under the Fair Housing Act.

(c) Failure of compliance. A creditor's failure to comply with § 1002.6(b)(6), § 1002.9, § 1002.10, § 1002.12 or § 1002.13 is not a violation if it results from an inadvertent error. On discovering an error under §§ 1002.9 and 1002.10, the creditor shall correct it as soon as possible. If a creditor inadvertently obtains the monitoring information regarding the ethnicity, race, and sex of the applicant in a dwelling-related transaction not covered by § 1002.13, the creditor may retain information and act on the application without violating the regulation.

Notes of Decisions

Cited in 8 cases (2 in the last 5 years), 2014–2025 · leading case: RL BB Acquisition, LLC v. Bridgemill Commons Dev. Grp., LLC, 754 F.3d 380 (6th Cir. 2014).

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RL BB Acquisition, LLC v. Bridgemill Commons Dev. Grp., LLC, 754 F.3d 380 (6th Cir. 2014). · cites it 2× “16 (b), 12 C.F.R. § 1002.16 (b). If a guarantor discovers a violation of the spouse-guarantor rule, she is free to bring an independent lawsuit (or a counterclaim) within ECOA’s statute of limitations.”

SeTara Tyson v. Sterling Rental, 836 F.3d 571 (6th Cir. 2016). “In support of this conclusion, the court cited 12 C.F.R. § 1002.16 (b)(4), which states: On referral, or whenever the Attorney General has reason to believe that one or more creditors have engaged in a pattern or practicé in violation of the [ECOA] or this part, the Attorney…”

Wigod v. PNC Bank, N.A., 338 F. Supp. 3d 758 (E.D. Ill. 2018). · cites it 2× “9, and as discussed above, the use of incorrect income inputs did not make PNC's statement unlawfully vague.”

Jennings Crouch v. Equifax Info. Servs., LLC (E.D. Ky. 2019). · cites it 6× “TCB has Failed to Demonstrate that it’s Error was Inadvertent under 12 C.F.R. § 1002.16 . However, TCB argues that, notwithstanding its failure to notify Crouch within 30 days, its failure does not constitute a violation of the ECOA because it was “inadvertent error[,]” under 12…”

Jennings Crouch v. Equifax Info. Servs., LLC (E.D. Ky. 2019). · cites it 5× “TCB has not Demonstrated the Existence of a Genuine Dispute as to Whether it’s Error was Inadvertent under 12 C.F.R. § 1002.16 . However, TCB argues that partial summary judgment is not appropriate, claiming its failure to notify Crouch within 30 days was not a violation of the…”

Wigod v. PNC BankK NA (N.D. Ill. 2018). · cites it 2× “12 C.F.R. § 1002.16 (c). But PNC had an obligation to issue a correction only if its error caused it to fail to comply with § 1002.”

Almanzar v. Santander Bank, N.A. (S.D.N.Y. 2025). “See 12 C.F.R. § 1002.16 (c). An inadvertent error is “a mechanical, electronic, or clerical error that a creditor demonstrates was not intentional and occurred notwithstanding the maintenance of procedures reasonably adapted to avoid such error.”

Flores (S.D.N.Y. 2025). “” 12 C.F.R. § 1002.16 (b)(2). thus fail to state a claim on which relief can be granted under the ECOA and Regulation B, and the Court dismisses these claims against Discover.”

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