Incentives for self-testing and self-correction
15 U.S.C. § 1691c–1
in effect(a) Privileged information(1) Conditions for privilegeA report or result of a self-test (as that term is defined by regulations of the Bureau) shall be considered to be privileged under paragraph (2) if a creditor—(A) conducts, or authorizes an independent third party to conduct, a self-test of any aspect of a credit transaction by a creditor, in order to determine the level or effectiveness of compliance with this subchapter by the creditor; and (B) has identified any possible violation of this subchapter by the creditor and has taken, or is taking, appropriate corrective action to address any such possible violation. (2) Privileged self-testIf a creditor meets the conditions specified in subparagraphs (A) and (B) of paragraph (1) with respect to a self-test described in that paragraph, any report or results of that self-test—(A) shall be privileged; and (B) may not be obtained or used by any applicant, department, or agency in any—(i) proceeding or civil action in which one or more violations of this subchapter are alleged; or (ii) examination or investigation relating to compliance with this subchapter.
(b) Results of self-testing(1) In generalNo provision of this section may be construed to prevent an applicant, department, or agency from obtaining or using a report or results of any self-test in any proceeding or civil action in which a violation of this subchapter is alleged, or in any examination or investigation of compliance with this subchapter if—(A) the creditor or any person with lawful access to the report or results—(i) voluntarily releases or discloses all, or any part of, the report or results to the applicant, department, or agency, or to the general public; or (ii) refers to or describes the report or results as a defense to charges of violations of this subchapter against the creditor to whom the self-test relates; or (B) the report or results are sought in conjunction with an adjudication or admission of a violation of this subchapter for the sole purpose of determining an appropriate penalty or remedy. (2) Disclosure for determination of penalty or remedyAny report or results of a self-test that are disclosed for the purpose specified in paragraph (1)(B)—(A) shall be used only for the particular proceeding in which the adjudication or admission referred to in paragraph (1)(B) is made; and (B) may not be used in any other action or proceeding.
(c) AdjudicationAn applicant, department, or agency that challenges a privilege asserted under this section may seek a determination of the existence and application of that privilege in—(1) a court of competent jurisdiction; or (2) an administrative law proceeding with appropriate jurisdiction.
Source: OLRC USLMURL: https://uscode.house.gov/download/releasepoints/us/pl/119/95/xml_usc15@119-95.zipFetched: 6/3/2026