110 STAT. 3009 -451 PUBLIC LAW 104-208—SEPT. 30, 1996 (3) in subsection (c), by adding at the end the following: "Notwithstanding the preceding, no agency referred to in subsection (b) may conduct an examination of a bank, savings association, or credit union regarding compliance with the provisions of this title, except in response to a complaint (or if the agency otherwise has knowledge) that the bank, savings association, or credit union has violated a provision of this title, in which case, the agency may conduct an examination as necessary to investigate the complaint. If an agency determines during an investigation in response to a complaint that a violation of this title has occurred, the agency may, during its next 2 regularly scheduled examinations of the bank, savings association, or credit union, examine for compliance with this title.". SEC. 2417. STATE ENFORCEMENT OF FAIR CREDIT REPORTING ACT. Section 621 of the Fair Credit Reporting Act (15 U.S.C. 1681s) is amended— (1) by redesignating subsection (c) as subsection (d); and (2) by inserting after subsection (b) the following new subsection: "(c) STATE ACTION FOR VIOLATIONS.— "(1) AUTHORITY OF STATES.—In addition to such other remedies as are provided under State law, if the chief law enforcement officer of a State, or an official or agency designated by a State, has reason to believe that any person has violated or is violating this title, the State— "(A) may bring an action to enjoin such violation in any appropriate United States district court or in any other court of competent jurisdiction; "(B) subject to paragraph (5), may bring an action on behalf of the residents of the State to recover— "(i) damages for which the person is liable to such residents under sections 616 and 617 as a result of the violation; "(ii) in the case of a violation of section 623(a), damages for which the person would, but for section 623(c), be liable to such residents as a result of the violation; or "(iii) damages of not more than $1,000 for each willful or negligent violation; and "(C) in the case of any successful action under subparagraph (A) or (B), shall be awarded the costs of the action and reasonable attorney fees as determined by the court. "(2) RIGHTS OF FEDERAL REGULATORS.— The State shall serve prior written notice of any action under paragraph (1) upon the Federal Trade Commission or the appropriate Federal regulator determined under subsection (b) and provide the Commission or appropriate Federal regulator with a copy of its complaint, except in any case in which such prior notice is not feasible, in which case the State shall serve such notice immediately upon instituting such action. The Federal Trade Commission or appropriate Federal regulator shall have the right— "(A) to intervene in the action; "(B) upon so intervening, to be heard on all matters arising therein;
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