15 U.S.C. § 1641 : US Code - Section 1641: Liability of assignees

Search 15 U.S.C. § 1641 : US Code - Section 1641: Liability of assignees

(a) Prerequisites
Except as otherwise specifically provided in this subchapter, any
civil action for a violation of this subchapter or proceeding under
section 1607 of this title which may be brought against a creditor
may be maintained against any assignee of such creditor only if the
violation for which such action or proceeding is brought is
apparent on the face of the disclosure statement, except where the
assignment was involuntary. For the purpose of this section, a
violation apparent on the face of the disclosure statement
includes, but is not limited to (1) a disclosure which can be
determined to be incomplete or inaccurate from the face of the
disclosure statement or other documents assigned, or (2) a
disclosure which does not use the terms required to be used by this
subchapter.
(b) Proof of compliance with statutory provisions
Except as provided in section 1635(c) of this title, in any
action or proceeding by or against any subsequent assignee of the
original creditor without knowledge to the contrary by the assignee
when he acquires the obligation, written acknowledgement of receipt
by a person to whom a statement is required to be given pursuant to
this subchapter shall be conclusive proof of the delivery thereof
and, except as provided in subsection (a) of this section, of
compliance with this part. This section does not affect the rights
of the obligor in any action against the original creditor.
(c) Right of rescission by consumer unaffected
Any consumer who has the right to rescind a transaction under
section 1635 of this title may rescind the transaction as against
any assignee of the obligation.
(d) Rights upon assignment of certain mortgages
(1) In general
Any person who purchases or is otherwise assigned a mortgage
referred to in section 1602(aa) of this title shall be subject to
all claims and defenses with respect to that mortgage that the
consumer could assert against the creditor of the mortgage,
unless the purchaser or assignee demonstrates, by a preponderance
of the evidence, that a reasonable person exercising ordinary due
diligence, could not determine, based on the documentation
required by this subchapter, the itemization of the amount
financed, and other disclosure of disbursements that the mortgage
was a mortgage referred to in section 1602(aa) of this title. The
preceding sentence does not affect rights of a consumer under
subsection (a), (b), or (c) of this section or any other
provision of this subchapter.
(2) Limitation on damages
Notwithstanding any other provision of law, relief provided as
a result of any action made permissible by paragraph (1) may not
exceed -
(A) with respect to actions based upon a violation of this
subchapter, the amount specified in section 1640 of this title;
and
(B) with respect to all other causes of action, the sum of -
(i) the amount of all remaining indebtedness; and
(ii) the total amount paid by the consumer in connection
with the transaction.
(3) Offset
The amount of damages that may be awarded under paragraph
(2)(B) shall be reduced by the amount of any damages awarded
under paragraph (2)(A).
(4) Notice
Any person who sells or otherwise assigns a mortgage referred
to in section 1602(aa) of this title shall include a prominent
notice of the potential liability under this subsection as
determined by the Board.
(e) Liability of assignee for consumer credit transactions secured
by real property
(1) In general
Except as otherwise specifically provided in this subchapter,
any civil action against a creditor for a violation of this
subchapter, and any proceeding under section 1607 of this title
against a creditor, with respect to a consumer credit transaction
secured by real property may be maintained against any assignee
of such creditor only if -
(A) the violation for which such action or proceeding is
brought is apparent on the face of the disclosure statement
provided in connection with such transaction pursuant to this
subchapter; and
(B) the assignment to the assignee was voluntary.
(2) Violation apparent on the face of the disclosure described
For the purpose of this section, a violation is apparent on the
face of the disclosure statement if -
(A) the disclosure can be determined to be incomplete or
inaccurate by a comparison among the disclosure statement, any
itemization of the amount financed, the note, or any other
disclosure of disbursement; or
(B) the disclosure statement does not use the terms or format
required to be used by this subchapter.
(f) Treatment of servicer
(1) In general
A servicer of a consumer obligation arising from a consumer
credit transaction shall not be treated as an assignee of such
obligation for purposes of this section unless the servicer is or
was the owner of the obligation.
(2) Servicer not treated as owner on basis of assignment for
administrative convenience
A servicer of a consumer obligation arising from a consumer
credit transaction shall not be treated as the owner of the
obligation for purposes of this section on the basis of an
assignment of the obligation from the creditor or another
assignee to the servicer solely for the administrative
convenience of the servicer in servicing the obligation. Upon
written request by the obligor, the servicer shall provide the
obligor, to the best knowledge of the servicer, with the name,
address, and telephone number of the owner of the obligation or
the master servicer of the obligation.
(3) "Servicer" defined
For purposes of this subsection, the term "servicer" has the
same meaning as in section 2605(i)(2) of title 12.
(4) Applicability
This subsection shall apply to all consumer credit transactions
in existence or consummated on or after September 30, 1995.