1. (a) Liability established Any person who fails to comply with any provision of this subchapter with respect to any other person shall be liable to such person in an amount equal to the sum of the amounts determined under each of the following paragraphs:

   1. (1) Actual damages The greater of—

      1. (A) the amount of any actual damage sustained by such person as a result of such failure; or
      2. (B) any amount paid by the person to the credit repair organization.

   2. (2) Punitive damages

      1. (A) Individual actions In the case of any action by an individual, such additional amount as the court may allow.

      2. (B) Class actions In the case of a class action, the sum of—

         1. (i) the aggregate of the amount which the court may allow for each named plaintiff; and
         2. (ii) the aggregate of the amount which the court may allow for each other class member, without regard to any minimum individual recovery.
   3. (3) Attorneys’ fees In the case of any successful action to enforce any liability under paragraph (1) or (2), the costs of the action, together with reasonable attorneys’ fees.

2. (b) Factors to be considered in awarding punitive damages In determining the amount of any liability of any credit repair organization under subsection (a)(2), the court shall consider, among other relevant factors—

   1. (1) the frequency and persistence of noncompliance by the credit repair organization;
   2. (2) the nature of the noncompliance;
   3. (3) the extent to which such noncompliance was intentional; and
   4. (4) in the case of any class action, the number of consumers adversely affected.

(Pub. L. 90–321, title IV, § 409, as added Pub. L. 104–208, div. A, title II, § 2451, Sept. 30, 1996, 110 Stat. 3009–459.)

Statutory Notes and Related Subsidiaries

Effective Date

Section applicable after the end of the 6-month period beginning on Sept. 30, 1996, except with respect to contracts entered into by a credit repair organization before the end of such period, see section 413 of Pub. L. 90–321, as added by Pub. L. 104–208, set out as a note under section 1679 of this title.