12 C.F.R. § 1002.112
§ 1002.112 Enforcement. (12 CFR Part 1002)
Operative Text
(a) Administrative enforcement and civil liability. A violation of section 704B of the Act or this subpart is subject to administrative sanctions and civil liability as provided in sections 704 (15 U.S.C. 1691c) and 706 (15 U.S.C. 1691e) of the Act, where applicable. (b) Bona fide errors. A bona fide error in compiling, maintaining, or reporting data with respect to a covered application is one that was unintentional and occurred despite the maintenance of procedures reasonably adapted to avoid such an error. A bona fide error is not a violation of the Act or this subpart. A financial institution is presumed to maintain procedures reasonably adapted to avoid such errors with respect to a given data field if the number of errors found in a random sample of the financial institution's submission for the data field does not equal or exceed a threshold specified by the Bureau for this purpose in appendix F to this part. However, an error is not a bona fide error if either there is a reasonable basis to believe the error was intentional or there is evidence that the financial institution does not or has not maintained procedures reasonably adapted to avoid such errors. (c) Safe harbors—(1) Incorrect entry for application date. A financial institution does not violate the Act or this subpart if it reports on its small business lending application register an application date that is within three business days of the actual application date pursuant to § 1002.107(a)(2). (2) Incorrect entry for census tract. An incorrect entry for census tract is not a violation of the Act or this subpart if the financial institution obtained the census tract by correctly using a geocoding tool provided by the FFIEC or the Bureau. (3) Incorrect entry for NAICS code. An incorrect entry for a 3-digit NAICS code is not a violation of the Act or this subpart, provided that the financial institution obtained the 3-digit NAICS code by: (i) Relying on an applicant's representations or on an appropriate third-party source, in accordance with § 1002.107(b), regarding the NAICS code; or (ii) Identifying the NAICS code itself, provided that the financial institution maintains procedures reasonably adapted to correctly identify a 3-digit NAICS code. (4) Incorrect determination of small business status, covered credit transaction, or covered application. A financial institution that initially collects data regarding whether an applicant for a covered credit transaction is a minority-owned business or a women-owned business and the ethnicity, race, and sex of the applicant's principal owners pursuant to § 1002.107(a)(18) and (19) but later concludes that it should not have collected such data does not violate the Act or this part if the financial institution, at the time it collected this data, had a reasonable basis for believing that the application was a covered application for a covered credit transaction from a small business pursuant to §§ 1002.103, 1002.104, and 1002.106, respectively. A financial institution seeking to avail itself of this safe harbor shall comply with the requirements of this subpart as otherwise required pursuant to §§ 1002.107, 1002.108, and 1002.111 with respect to the collected data.
Section 1002.112 of 12 CFR Part 1002 establishes how violations of the small business lending data collection rules are enforced and identifies circumstances under which certain reporting errors or incorrect entries do not constitute violations. Enforcement can take the form of administrative sanctions or civil liability under the Equal Credit Opportunity Act. The provision also carves out protections for unintentional errors made despite reasonable safeguards, and creates specific safe harbors for certain data fields—such as application dates, census tracts, NAICS codes, and small business status determinations—where good-faith, procedure-backed mistakes will not be treated as rule violations.
Plain English — not legal advice.
Although § 1002.112 primarily governs financial institutions rather than property owners, operators who participate in small business lending or work with lenders on covered credit transactions should be aware that data accuracy obligations carry real enforcement consequences. Compliant institutions generally maintain documented internal procedures for data collection and reporting—procedures that are specifically designed to catch and prevent errors in fields like census tract, NAICS code, and application date. Operators who interact with lenders during the application process can support compliance by providing accurate, consistent representations about their business classification and related information, as lenders may rely on those representations under the safe harbors described in § 1002.112(c).
General guidance for property managers — not legal advice for your specific situation. Consult an attorney for advice on your case.
Section 1002.112 is primarily directed at financial institutions, but small business applicants—including those seeking credit for business purposes—have an interest in understanding that violations of the underlying data collection rules can trigger administrative and civil enforcement actions. If an applicant believes a lender mishandled required data collection under this subpart, general enforcement paths include filing a complaint with the Consumer Financial Protection Bureau or another applicable federal supervisory agency. Tenant-rights organizations and small business advocacy groups can help applicants understand whether the safe harbor provisions in § 1002.112(b) and (c) may be relevant to a situation they have experienced.
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 4, 2026 — auto-generated, not yet human-reviewed. See /transparency for methodology.
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