Consumer Credit DenialRemedies

Section § 1787.3

Explanation

This law section describes what happens if a creditor breaks certain rules. If these rules are not followed, the creditor has to pay for any harm caused. Besides paying for actual damages, non-government creditors might also have to pay up to $10,000 in punitive damages, unless it's a group lawsuit which caps the total at a lower amount. The court considers the seriousness and frequency of the wrongdoing when deciding the penalty. If someone wins a lawsuit, the creditor has to cover legal costs, including reasonable attorney fees. However, if a creditor unknowingly follows an official guideline that later changes or is invalidated, they are not liable. Finally, any claims about not following these rules must be filed within two years.

(a)CA Civil Law Code § 1787.3(a) Any creditor who fails to comply with any requirement of Section 1787.2 shall be liable for any actual damages sustained by an applicant as a result of such failure.
(b)CA Civil Law Code § 1787.3(b) Any creditor, other than a government or governmental subdivision or agency, who fails to comply with any requirement imposed under this title shall be liable to the aggrieved applicant for punitive damages in an amount not greater than ten thousand dollars ($10,000), in addition to any actual damages provided in subdivision (a), except that in the case of a class action the total recovery under this subdivision shall not exceed the lesser of five hundred thousand dollars ($500,000) or 1 percent of the net worth of the creditor. In determining the amount of such damages in any action, the court shall consider, among other relevant factors, the amount of any actual damages awarded, the frequency and persistence of failures of compliance by the creditor, the resources of the creditor, the number of persons adversely affected, and the extent to which the creditor’s failure of compliance was intentional.
(c)CA Civil Law Code § 1787.3(c) In the case of any action brought by an aggrieved applicant under subdivision (a) or (b), the costs of the action, together with a reasonable attorney’s fee as determined by the court, shall be added to any damages awarded by the court.
(d)CA Civil Law Code § 1787.3(d) No provision of this title imposing liability shall apply to any act done or omitted in good faith in conformity with any official rule, regulation, or interpretation thereby by the Board of Governors of the Federal Reserve System or in conformity with any interpretation or approval by an official or employee of the Federal Reserve System duly authorized by the board to issue such interpretations or approvals under such procedures as the board may prescribe therefor, notwithstanding that after such act or omission has occurred, such rule, regulation, interpretation, or approval is amended, rescinded, or determined by judicial or other authority to be invalid for any reason.
(e)CA Civil Law Code § 1787.3(e) Actions alleging a failure to comply with any requirement of Section 1787.2 shall be brought within two years from the date of the occurrence of the violation.
creditor liability actual damages punitive damages ...

Section § 1787.4

Explanation

If someone tries to give up their rights under this law, it won't count because it's not allowed and can't be enforced.

Any waiver of the provisions of this title is contrary to public policy, and is void and unenforceable.
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