usc 12 § 5536
Prohibited acts (BANKS AND BANKING (12 U.S.C.))
Operative Text
It shall be unlawful for— any covered person or service provider— to offer or provide to a consumer any financial product or service not in conformity with Federal consumer financial law, or otherwise commit any act or omission in violation of a Federal consumer financial law; or to engage in any unfair, deceptive, or abusive act or practice; any covered person or service provider to fail or refuse, as required by Federal consumer financial law, or any rule or order issued by the Bureau thereunder— to permit access to or copying of records; to establish or maintain records; or to make reports or provide information to the Bureau; or any person to knowingly or recklessly provide substantial assistance to a covered person or service provider in violation of the provisions of , or any rule or order issued thereunder, and notwithstanding any provision of this title, the provider of such substantial assistance shall be deemed to be in violation of that section to the same extent as the person to whom such assistance is provided. No person shall be held to have violated subsection (a)(1) solely by virtue of providing or selling time or space to a covered person or service provider placing an advertisement.
Section 12 U.S.C. § 5536 establishes a set of prohibited acts under federal consumer financial law. It bars covered persons and service providers from offering financial products or services that violate federal consumer financial law, and from engaging in unfair, deceptive, or abusive acts or practices. The provision also extends liability to third parties who knowingly or recklessly provide substantial assistance to a violator, treating such assisters as if they had committed the violation themselves. One notable carve-out specifies that merely selling or providing advertising time or space to a covered person does not, on its own, constitute a violation.
Plain English — not legal advice.
Property owners and managers who offer financial products or services — such as rent-to-own arrangements, certain lease-related financing, or other consumer financial offerings — should be aware that 12 U.S.C. § 5536 applies to 'covered persons' and their service providers. Compliant operators generally ensure that any financial product or service they offer aligns with applicable federal consumer financial laws and avoids practices that could be characterized as unfair, deceptive, or abusive. They also maintain required records, permit Bureau access as mandated, and exercise care when working with third-party vendors, since assisting a violator can itself trigger liability under this section.
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Under 12 U.S.C. § 5536, consumers have federal protections against financial products, services, and practices that are unlawful, unfair, deceptive, or abusive. If a tenant believes a landlord or related service provider has engaged in such conduct — for example, in connection with a financing arrangement tied to housing — that tenant may have grounds to raise the violation in a legal proceeding or file a complaint with the Consumer Financial Protection Bureau (CFPB), which enforces this provision. Tenant-rights organizations and legal aid offices can help individuals understand whether a particular practice may fall within the scope of § 5536 and what general enforcement paths are available.
General guidance for tenants — not legal advice for your specific situation. Consult a tenant-rights organization or attorney for advice on your case.
Generated September 13, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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