Civil Penalty Inflation Adjustments, 2314-2316 [2022-00672]

Download as PDF 2314 Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Rules and Regulations TABLE 1 TO PARAGRAPH (b)—Continued Adjusted civil money penalty Statute Third Tier ...................................................................................................................................................................................... 12 U.S.C. 3110(a) ................................................................................................................................................................................ 12 U.S.C. 3110(c): First Tier ....................................................................................................................................................................................... Second Tier .................................................................................................................................................................................. Third Tier ...................................................................................................................................................................................... 12 U.S.C. 3909(d) ................................................................................................................................................................................ 15 U.S.C. 78u–2(b)(1): For a natural person ..................................................................................................................................................................... For any other person .................................................................................................................................................................... 15 U.S.C. 78u–2(b)(2): For a natural person ..................................................................................................................................................................... For any other person .................................................................................................................................................................... 15 U.S.C. 78u–2(b)(3): For a natural person ..................................................................................................................................................................... For any other person .................................................................................................................................................................... 15 U.S.C. 1639e(k)(1) ......................................................................................................................................................................... 15 U.S.C. 1639e(k)(2) ......................................................................................................................................................................... 42 U.S.C. 4012a(f)(5) .......................................................................................................................................................................... By order of the Board of Governors of the Federal Reserve System, acting through the Secretary of the Board under delegated authority. Ann Misback, Secretary of the Board. [FR Doc. 2022–00592 Filed 1–13–22; 8:45 am] BILLING CODE 6210–01–P BUREAU OF CONSUMER FINANCIAL PROTECTION 12 CFR Part 1083 Civil Penalty Inflation Adjustments Bureau of Consumer Financial Protection. ACTION: Final rule. AGENCY: The Bureau of Consumer Financial Protection (Bureau) is adjusting for inflation the maximum amount of each civil penalty within the Bureau’s jurisdiction. These adjustments are required by the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Inflation Adjustment Act). The inflation adjustments mandated by the Inflation Adjustment Act serve to maintain the deterrent effect of civil penalties and to promote compliance with the law. DATES: This final rule is effective January 15, 2022. FOR FURTHER INFORMATION CONTACT: Willie Williams, Paralegal Specialist; Lanique Eubanks, Senior Counsel, Office of Regulations, at (202) 435–7700. If you require this document in an lotter on DSK11XQN23PROD with RULES1 SUMMARY: VerDate Sep<11>2014 16:05 Jan 13, 2022 Jkt 256001 alternative electronic format, please contact CFPB_Accessibility@cfpb.gov. SUPPLEMENTARY INFORMATION: I. Background The Federal Civil Penalties Inflation Adjustment Act of 1990,1 as amended by the Debt Collection Improvement Act of 1996 2 and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (Inflation Adjustment Act),3 directs Federal agencies to adjust for inflation the civil penalty amounts within their jurisdiction not later than July 1, 2016, and then not later than January 15 every year thereafter.4 Each agency was required to make the 2016 one-time catch-up adjustments through an interim final rule published in the Federal Register. On June 14, 2016, the Bureau published its interim final rule (IFR) to make the initial catch-up adjustments to civil penalties within the Bureau’s jurisdiction.5 The June 2016 IFR created a new part 1083 and in 1083.1 established the inflation-adjusted maximum amounts for each civil penalty within the Bureau’s 1 Public Law 101–410, 104 Stat. 890. Law 104–134, sec. 31001(s)(1), 110 Stat. 1321, 1321–373. 3 Public Law 114–74, sec. 701, 129 Stat. 584, 599. 4 Section 1301(a) of the Federal Reports Elimination Act of 1998, Public Law 105–362, 112 Stat. 3293, also amended the Inflation Adjustment Act by striking section 6, which contained annual reporting requirements, and redesignating section 7 as section 6, but did not alter the civil penalty adjustment requirements; 28 U.S.C. 2461 note. 5 81 FR 38569 (June 14, 2016). Although the Bureau was not obligated to solicit comments for the interim final rule, the Bureau invited public comment and received none. 2 Public PO 00000 Frm 00006 Fmt 4700 Sfmt 4700 2,202,123 50,326 4,027 40,259 2,013,008 2,739 10,360 103,591 103,591 517,955 207,183 1,035,909 12,647 25,293 2,392 jurisdiction.6 The Bureau finalized the IFR on January 31, 2019.7 The Inflation Adjustment Act also requires subsequent adjustments to be made annually, not later than January 15, and notwithstanding section 553 of the Administrative Procedure Act (APA).8 The Bureau annually adjusted its civil penalty amounts, as required by the Act, through rules issued in January 2017, January 2018, January 2019, January 2020, and January 2021.9 Specifically, the Act directs Federal agencies to adjust annually each civil penalty provided by law within the jurisdiction of the agency by the ‘‘costof-living adjustment.’’ 10 The ‘‘cost-ofliving adjustment’’ is defined as the percentage (if any) by which the Consumer Price Index for all-urban consumers (CPI–U) for the month of October preceding the date of the adjustment, exceeds the CPI–U for 6 See 12 CFR 1083.1. FR 517 (Jan. 31, 2019). 8 Inflation Adjustment Act section 4, codified at 28 U.S.C. 2461 note. As discussed in guidance issued by the Director of the Office of Management and Budget (OMB), the APA generally requires notice, an opportunity for comment, and a delay in effective date for certain rulemakings, but the Inflation Adjustment Act provides that these procedures are not required for agencies to issue regulations implementing the annual adjustment. See Memorandum for the Heads of Exec. Dep’ts & Agencies from Shalanda D. Young, Acting Director, Implementation of Penalty Inflation Adjustments for 2022, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Off. of Mgmt. & Budget (Dec. 15, 2021), available at https://www.whitehouse.gov/wpcontent/uploads/2021/12/M-22-07.pdf. 9 82 FR 3601 (Jan. 12, 2017); 83 FR 1525 (Jan. 12, 2018); 84 FR 517 (Jan. 31, 2019); 85 FR 2012 (Jan. 14, 2020); 86 FR 3767 (Jan. 15, 2021). 10 Inflation Adjustment Act sections 4 and 5, codified at 28 U.S.C. 2461 note. 7 84 E:\FR\FM\14JAR1.SGM 14JAR1 Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Rules and Regulations October of the prior year.11 The Director of the Office of Management and Budget (OMB) is required to issue guidance (OMB Guidance) every year by December 15 to agencies on implementing the annual civil penalty inflation adjustments. Pursuant to the Inflation Adjustment Act and OMB Guidance, agencies must apply the multiplier reflecting the ‘‘cost-of-living adjustment’’ to the current penalty II. Adjustment Pursuant to the Inflation Adjustment Act and OMB Guidance, the Bureau multiplied each of its civil penalty amounts by the ‘‘cost-of-living adjustment’’ multiplier and rounded to the nearest dollar.14 The new penalty amounts that apply to civil penalties assessed after January 15, 2022, are as follows: Penalty amounts established under 2021 final rule OMB ‘‘Cost-ofLiving Adjustment’’ multiplier New penalty amount Law Penalty description Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(A). Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(B). Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(C). Interstate Land Sales Full Disclosure Act, 15 U.S.C. 1717a(a)(2). Interstate Land Sales Full Disclosure Act, 15 U.S.C. 1717a(a)(2). Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(1). Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(1). Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(2)(A). SAFE Act, 12 U.S.C. 5113(d)(2) ..................................... Truth in Lending Act, 15 U.S.C. 1639e(k)(1) .................. Truth in Lending Act, 15 U.S.C. 1639e(k)(2) .................. Tier 1 penalty .................................................................. $5,953 1.06222 $6,323 Tier 2 penalty .................................................................. 29,764 1.06222 31,616 Tier 3 penalty .................................................................. 1,190,546 1.06222 1,264,622 Per violation .................................................................... 2,074 1.06222 2,203 Annual cap ...................................................................... 2,073,133 1.06222 2,202,123 Per failure ....................................................................... 97 1.06222 103 Annual cap ...................................................................... 195,047 1.06222 207,183 Per failure, where intentional .......................................... 195 1.06222 207 Per violation .................................................................... First violation ................................................................... Subsequent violations ..................................................... 30,058 11,906 23,811 1.06222 1.06222 1.06222 31,928 12,647 25,293 Under the Administrative Procedure Act, notice and opportunity for public comment are not required if the Bureau finds that notice and public comment are impracticable, unnecessary, or contrary to the public interest.15 The adjustments to the civil penalty amounts are technical and nondiscretionary, and they merely apply the statutory method for adjusting civil penalty amounts. These adjustments are required by the Inflation Adjustment Act. Moreover, the Inflation Adjustment Act directs agencies to adjust civil penalties annually notwithstanding section 553 of the APA,16 and OMB Guidance reaffirms that agencies need not complete a notice-and-comment process before making the annual adjustments for inflation.17 For these reasons, the Bureau has determined that publishing a notice of proposed rulemaking and providing opportunity for public comment are unnecessary. The amendments therefore are adopted in final form. Section 553(d) of the APA generally requires publication of a final rule not less than 30 days before its effective date, except (1) a substantive rule which grants or recognizes an exemption or relieves a restriction; (2) interpretive rules and statements of policy; or (3) as otherwise provided by the agency for good cause found and published with the rule.18 At minimum, the Bureau believes the annual adjustments to the civil penalty amounts in § 1083.1(a) fall under the third exception to section 553(d). The Bureau finds that there is good cause to make the amendments 11 Inflation Adjustment Act sections 3 and 5, codified at 28 U.S.C. 2461 note. 12 Inflation Adjustment Act section 5, codified at 28 U.S.C. 2461 note; see also Memorandum for the Heads of Exec. Dep’ts & Agencies from Shalanda D. Young, Acting Director, Implementation of Penalty Inflation Adjustments for 2022, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Off. of Mgmt. & Budget (Dec. 15, 2021), available at https:// www.whitehouse.gov/wp-content/uploads/2021/12/ M-22-07.pdf. 13 See Inflation Adjustment Act section 2, codified at 28 U.S.C. 2461 note. 14 Inflation Adjustment Act section 4, codified at 28 U.S.C. 2461 note. 15 5 U.S.C. 553(b)(B). 16 Inflation Adjustment Act section 4, codified at 28 U.S.C. 2461 note. 17 Memorandum for the Heads of Exec. Dep’ts & Agencies from Shalanda D. Young, Acting Director, Implementation of Penalty Inflation Adjustments for 2022, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Off. of Mgmt. & Budget (Dec. 15, 2021), available at https://www.whitehouse.gov/wpcontent/uploads/2021/12/M-22-07.pdf. III. Procedural Requirements A. Administrative Procedure Act lotter on DSK11XQN23PROD with RULES1 amount and then round that amount to the nearest dollar to determine the annual adjustments.12 The adjustments are designed to keep pace with inflation so that civil penalties retain their deterrent effect and promote compliance with the law.13 For the 2022 annual adjustment, the multiplier reflecting the ‘‘cost-of-living adjustment’’ is 1.06222. 2315 VerDate Sep<11>2014 16:05 Jan 13, 2022 Jkt 256001 PO 00000 Frm 00007 Fmt 4700 Sfmt 4700 effective on January 15, 2022. The amendments to § 1083.1(a) in this final rule are technical and nondiscretionary, and they merely apply the statutory method for adjusting civil penalty amounts and follow the statutory directive to make annual adjustments each year. Moreover, the Inflation Adjustment Act directs agencies to adjust the civil penalties annually notwithstanding section 553 of the APA,19 and OMB Guidance reaffirms that agencies need not provide a delay in effective date for the annual adjustments for inflation.20 B. Regulatory Flexibility Act Because no notice of proposed rulemaking is required, the Regulatory Flexibility Act does not require an initial or final regulatory flexibility analysis.21 18 5 U.S.C. 553(d). Adjustment Act section 4, codified at 28 U.S.C. 2461 note. 20 Memorandum for the Heads of Exec. Dep’ts & Agencies from Shalanda D. Young, Acting Director, Implementation of Penalty Inflation Adjustments for 2022, Pursuant to the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, Off. of Mgmt. & Budget (Dec. 15, 2021), available at https://www.whitehouse.gov/wpcontent/uploads/2021/12/M-22-07.pdf. 21 5 U.S.C. 603(a), 604(a). 19 Inflation E:\FR\FM\14JAR1.SGM 14JAR1 2316 Federal Register / Vol. 87, No. 10 / Friday, January 14, 2022 / Rules and Regulations C. Paperwork Reduction Act The Bureau has determined that this final rule does not impose any new or revise any existing recordkeeping, reporting, or disclosure requirements on covered entities or members of the public that would be collections of information requiring approval by the Office of Management and Budget under the Paperwork Reduction Act.22 D. Congressional Review Act Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), the Bureau will submit a report containing this rule and other required information to the United States Senate, the United States House of Representatives, and the Comptroller General of the United States prior to the rule taking effect. The Office of Information and Regulatory Affairs (OIRA) has designated this rule as not a ‘‘major rule’’ as defined by 5 U.S.C. 804(2). IV. Signing Authority The Associate Director for Research, Markets and Regulations, Janis K. Pappalardo, having reviewed and approved this document, is delegating the authority to electronically sign this document to Laura Galban, a Bureau Federal Register Liaison, for purposes of publication in the Federal Register. Authority: 12 U.S.C. 2609(d); 12 U.S.C. 5113(d)(2); 12 U.S.C. 5565(c); 15 U.S.C. 1639e(k); 15 U.S.C. 1717a(a); 28 U.S.C. 2461 note. List of Subjects in 12 CFR Part 1083 Administrative practice and procedure, Consumer protection, Penalties. (a) The maximum amount of each civil penalty within the jurisdiction of the Consumer Financial Protection Bureau to impose is adjusted in accordance with the Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by the Debt Collection Improvement Act of 1996 and further amended by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015 (28 U.S.C. 2461 note), as follows: Authority and Issuance For the reasons set forth in the preamble, the Bureau amends 12 CFR part 1083, as set forth below: PART 1083—CIVIL PENALTY ADJUSTMENTS 2. Section 1083.1 is revised to read as follows: ■ § 1083.1 Adjustment of civil penalty amounts. 1. The authority citation for part 1083 continues to read as follows: ■ TABLE 1 TO PARAGRAPH (a) Law 12 12 12 15 15 12 12 12 12 15 15 U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. U.S.C. Penalty description 5565(c)(2)(A) ............................................................. 5565(c)(2)(B) ............................................................. 5565(c)(2)(C) ............................................................. 1717a(a)(2) ................................................................ 1717a(a)(2) ................................................................ 2609(d)(1) .................................................................. 2609(d)(1) .................................................................. 2609(d)(2)(A) ............................................................. 5113(d)(2) .................................................................. 1639e(k)(1) ................................................................ 1639e(k)(2) ................................................................ Tier 1 penalty ............................................................................. Tier 2 penalty ............................................................................. Tier 3 penalty ............................................................................. Per violation ................................................................................ Annual cap ................................................................................. Per failure ................................................................................... Annual cap ................................................................................. Per failure, where intentional ...................................................... Per violation ................................................................................ First violation .............................................................................. Subsequent violations ................................................................ (b) The adjustments in paragraph (a) of this section shall apply to civil penalties assessed after January 15, 2022, whose associated violations occurred on or after November 2, 2015. DEPARTMENT OF TRANSPORTATION Laura Galban, Federal Register Liaison, Bureau of Consumer Financial Protection. [Docket No. FAA–2021–0689; Project Identifier AD–2020–01589–R; Amendment 39–21898; AD 2022–02–01] [FR Doc. 2022–00672 Filed 1–13–22; 8:45 am] BILLING CODE 4810–AM–P Federal Aviation Administration 14 CFR Part 39 RIN 2120–AA64 Airworthiness Directives; Sikorsky Aircraft Corporation Helicopters Federal Aviation Administration (FAA), DOT. ACTION: Final rule. AGENCY: lotter on DSK11XQN23PROD with RULES1 22 44 This AD is effective February 18, 2022. The Director of the Federal Register approved the incorporation by reference of a certain publication listed in this AD as of February 18, 2022. DATES: For service information identified in this final rule, contact your local Sikorsky Field Representative or Sikorsky’s Service Engineering Group at Sikorsky Aircraft Corporation, Mailstop K100, 124 Quarry Road, Trumbull, CT 06611; telephone 1–800–946–4337 (1– 800–Winged–S); email wcs_cust_ service_eng.gr-sik@lmco.com. Operators U.S.C. 3501–3521. VerDate Sep<11>2014 16:05 Jan 13, 2022 Jkt 256001 PO 00000 Frm 00008 Fmt 4700 Sfmt 4700 $6,323 31,616 1,264,622 2,203 2,202,123 103 207,183 207 31,928 12,647 25,293 assembly). This AD requires visually inspecting the swashplate assembly at specified intervals and depending on the results, removing the swashplate assembly from service. The FAA is issuing this AD to address the unsafe condition on these products. ADDRESSES: The FAA is adopting a new airworthiness directive (AD) for certain Sikorsky Aircraft Corporation Model S– 92A helicopters. This AD was prompted by a cracked main rotor stationary swashplate assembly (swashplate SUMMARY: Adjusted maximum civil penalty amount E:\FR\FM\14JAR1.SGM 14JAR1

Agencies

[Federal Register Volume 87, Number 10 (Friday, January 14, 2022)]
[Rules and Regulations]
[Pages 2314-2316]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-00672]


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BUREAU OF CONSUMER FINANCIAL PROTECTION

12 CFR Part 1083


Civil Penalty Inflation Adjustments

AGENCY: Bureau of Consumer Financial Protection.

ACTION: Final rule.

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SUMMARY: The Bureau of Consumer Financial Protection (Bureau) is 
adjusting for inflation the maximum amount of each civil penalty within 
the Bureau's jurisdiction. These adjustments are required by the 
Federal Civil Penalties Inflation Adjustment Act of 1990, as amended by 
the Debt Collection Improvement Act of 1996 and further amended by the 
Federal Civil Penalties Inflation Adjustment Act Improvements Act of 
2015 (Inflation Adjustment Act). The inflation adjustments mandated by 
the Inflation Adjustment Act serve to maintain the deterrent effect of 
civil penalties and to promote compliance with the law.

DATES: This final rule is effective January 15, 2022.

FOR FURTHER INFORMATION CONTACT: Willie Williams, Paralegal Specialist; 
Lanique Eubanks, Senior Counsel, Office of Regulations, at (202) 435-
7700. If you require this document in an alternative electronic format, 
please contact [email protected].

SUPPLEMENTARY INFORMATION:

I. Background

    The Federal Civil Penalties Inflation Adjustment Act of 1990,\1\ as 
amended by the Debt Collection Improvement Act of 1996 \2\ and further 
amended by the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015 (Inflation Adjustment Act),\3\ directs Federal 
agencies to adjust for inflation the civil penalty amounts within their 
jurisdiction not later than July 1, 2016, and then not later than 
January 15 every year thereafter.\4\ Each agency was required to make 
the 2016 one-time catch-up adjustments through an interim final rule 
published in the Federal Register. On June 14, 2016, the Bureau 
published its interim final rule (IFR) to make the initial catch-up 
adjustments to civil penalties within the Bureau's jurisdiction.\5\ The 
June 2016 IFR created a new part 1083 and in 1083.1 established the 
inflation-adjusted maximum amounts for each civil penalty within the 
Bureau's jurisdiction.\6\ The Bureau finalized the IFR on January 31, 
2019.\7\
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    \1\ Public Law 101-410, 104 Stat. 890.
    \2\ Public Law 104-134, sec. 31001(s)(1), 110 Stat. 1321, 1321-
373.
    \3\ Public Law 114-74, sec. 701, 129 Stat. 584, 599.
    \4\ Section 1301(a) of the Federal Reports Elimination Act of 
1998, Public Law 105-362, 112 Stat. 3293, also amended the Inflation 
Adjustment Act by striking section 6, which contained annual 
reporting requirements, and redesignating section 7 as section 6, 
but did not alter the civil penalty adjustment requirements; 28 
U.S.C. 2461 note.
    \5\ 81 FR 38569 (June 14, 2016). Although the Bureau was not 
obligated to solicit comments for the interim final rule, the Bureau 
invited public comment and received none.
    \6\ See 12 CFR 1083.1.
    \7\ 84 FR 517 (Jan. 31, 2019).
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    The Inflation Adjustment Act also requires subsequent adjustments 
to be made annually, not later than January 15, and notwithstanding 
section 553 of the Administrative Procedure Act (APA).\8\ The Bureau 
annually adjusted its civil penalty amounts, as required by the Act, 
through rules issued in January 2017, January 2018, January 2019, 
January 2020, and January 2021.\9\
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    \8\ Inflation Adjustment Act section 4, codified at 28 U.S.C. 
2461 note. As discussed in guidance issued by the Director of the 
Office of Management and Budget (OMB), the APA generally requires 
notice, an opportunity for comment, and a delay in effective date 
for certain rulemakings, but the Inflation Adjustment Act provides 
that these procedures are not required for agencies to issue 
regulations implementing the annual adjustment. See Memorandum for 
the Heads of Exec. Dep'ts & Agencies from Shalanda D. Young, Acting 
Director, Implementation of Penalty Inflation Adjustments for 2022, 
Pursuant to the Federal Civil Penalties Inflation Adjustment Act 
Improvements Act of 2015, Off. of Mgmt. & Budget (Dec. 15, 2021), 
available at https://www.whitehouse.gov/wp-content/uploads/2021/12/M-22-07.pdf.
    \9\ 82 FR 3601 (Jan. 12, 2017); 83 FR 1525 (Jan. 12, 2018); 84 
FR 517 (Jan. 31, 2019); 85 FR 2012 (Jan. 14, 2020); 86 FR 3767 (Jan. 
15, 2021).
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    Specifically, the Act directs Federal agencies to adjust annually 
each civil penalty provided by law within the jurisdiction of the 
agency by the ``cost-of-living adjustment.'' \10\ The ``cost-of-living 
adjustment'' is defined as the percentage (if any) by which the 
Consumer Price Index for all-urban consumers (CPI-U) for the month of 
October preceding the date of the adjustment, exceeds the CPI-U for

[[Page 2315]]

October of the prior year.\11\ The Director of the Office of Management 
and Budget (OMB) is required to issue guidance (OMB Guidance) every 
year by December 15 to agencies on implementing the annual civil 
penalty inflation adjustments. Pursuant to the Inflation Adjustment Act 
and OMB Guidance, agencies must apply the multiplier reflecting the 
``cost-of-living adjustment'' to the current penalty amount and then 
round that amount to the nearest dollar to determine the annual 
adjustments.\12\ The adjustments are designed to keep pace with 
inflation so that civil penalties retain their deterrent effect and 
promote compliance with the law.\13\
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    \10\ Inflation Adjustment Act sections 4 and 5, codified at 28 
U.S.C. 2461 note.
    \11\ Inflation Adjustment Act sections 3 and 5, codified at 28 
U.S.C. 2461 note.
    \12\ Inflation Adjustment Act section 5, codified at 28 U.S.C. 
2461 note; see also Memorandum for the Heads of Exec. Dep'ts & 
Agencies from Shalanda D. Young, Acting Director, Implementation of 
Penalty Inflation Adjustments for 2022, Pursuant to the Federal 
Civil Penalties Inflation Adjustment Act Improvements Act of 2015, 
Off. of Mgmt. & Budget (Dec. 15, 2021), available at https://www.whitehouse.gov/wp-content/uploads/2021/12/M-22-07.pdf.
    \13\ See Inflation Adjustment Act section 2, codified at 28 
U.S.C. 2461 note.
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    For the 2022 annual adjustment, the multiplier reflecting the 
``cost-of-living adjustment'' is 1.06222.

II. Adjustment

    Pursuant to the Inflation Adjustment Act and OMB Guidance, the 
Bureau multiplied each of its civil penalty amounts by the ``cost-of-
living adjustment'' multiplier and rounded to the nearest dollar.\14\ 
The new penalty amounts that apply to civil penalties assessed after 
January 15, 2022, are as follows:
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    \14\ Inflation Adjustment Act section 4, codified at 28 U.S.C. 
2461 note.

----------------------------------------------------------------------------------------------------------------
                                                                      Penalty
                                                                      amounts     OMB ``Cost-of-
                  Law                      Penalty description      established       Living        New penalty
                                                                    under 2021     Adjustment''       amount
                                                                    final rule      multiplier
----------------------------------------------------------------------------------------------------------------
Consumer Financial Protection Act, 12   Tier 1 penalty..........          $5,953         1.06222          $6,323
 U.S.C. 5565(c)(2)(A).
Consumer Financial Protection Act, 12   Tier 2 penalty..........          29,764         1.06222          31,616
 U.S.C. 5565(c)(2)(B).
Consumer Financial Protection Act, 12   Tier 3 penalty..........       1,190,546         1.06222       1,264,622
 U.S.C. 5565(c)(2)(C).
Interstate Land Sales Full Disclosure   Per violation...........           2,074         1.06222           2,203
 Act, 15 U.S.C. 1717a(a)(2).
Interstate Land Sales Full Disclosure   Annual cap..............       2,073,133         1.06222       2,202,123
 Act, 15 U.S.C. 1717a(a)(2).
Real Estate Settlement Procedures Act,  Per failure.............              97         1.06222             103
 12 U.S.C. 2609(d)(1).
Real Estate Settlement Procedures Act,  Annual cap..............         195,047         1.06222         207,183
 12 U.S.C. 2609(d)(1).
Real Estate Settlement Procedures Act,  Per failure, where                   195         1.06222             207
 12 U.S.C. 2609(d)(2)(A).                intentional.
SAFE Act, 12 U.S.C. 5113(d)(2)........  Per violation...........          30,058         1.06222          31,928
Truth in Lending Act, 15 U.S.C.         First violation.........          11,906         1.06222          12,647
 1639e(k)(1).
Truth in Lending Act, 15 U.S.C.         Subsequent violations...          23,811         1.06222          25,293
 1639e(k)(2).
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III. Procedural Requirements

A. Administrative Procedure Act

    Under the Administrative Procedure Act, notice and opportunity for 
public comment are not required if the Bureau finds that notice and 
public comment are impracticable, unnecessary, or contrary to the 
public interest.\15\ The adjustments to the civil penalty amounts are 
technical and non-discretionary, and they merely apply the statutory 
method for adjusting civil penalty amounts. These adjustments are 
required by the Inflation Adjustment Act. Moreover, the Inflation 
Adjustment Act directs agencies to adjust civil penalties annually 
notwithstanding section 553 of the APA,\16\ and OMB Guidance reaffirms 
that agencies need not complete a notice-and-comment process before 
making the annual adjustments for inflation.\17\ For these reasons, the 
Bureau has determined that publishing a notice of proposed rulemaking 
and providing opportunity for public comment are unnecessary. The 
amendments therefore are adopted in final form.
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    \15\ 5 U.S.C. 553(b)(B).
    \16\ Inflation Adjustment Act section 4, codified at 28 U.S.C. 
2461 note.
    \17\ Memorandum for the Heads of Exec. Dep'ts & Agencies from 
Shalanda D. Young, Acting Director, Implementation of Penalty 
Inflation Adjustments for 2022, Pursuant to the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015, Off. of 
Mgmt. & Budget (Dec. 15, 2021), available at https://www.whitehouse.gov/wp-content/uploads/2021/12/M-22-07.pdf.
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    Section 553(d) of the APA generally requires publication of a final 
rule not less than 30 days before its effective date, except (1) a 
substantive rule which grants or recognizes an exemption or relieves a 
restriction; (2) interpretive rules and statements of policy; or (3) as 
otherwise provided by the agency for good cause found and published 
with the rule.\18\ At minimum, the Bureau believes the annual 
adjustments to the civil penalty amounts in Sec.  1083.1(a) fall under 
the third exception to section 553(d). The Bureau finds that there is 
good cause to make the amendments effective on January 15, 2022. The 
amendments to Sec.  1083.1(a) in this final rule are technical and non-
discretionary, and they merely apply the statutory method for adjusting 
civil penalty amounts and follow the statutory directive to make annual 
adjustments each year. Moreover, the Inflation Adjustment Act directs 
agencies to adjust the civil penalties annually notwithstanding section 
553 of the APA,\19\ and OMB Guidance reaffirms that agencies need not 
provide a delay in effective date for the annual adjustments for 
inflation.\20\
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    \18\ 5 U.S.C. 553(d).
    \19\ Inflation Adjustment Act section 4, codified at 28 U.S.C. 
2461 note.
    \20\ Memorandum for the Heads of Exec. Dep'ts & Agencies from 
Shalanda D. Young, Acting Director, Implementation of Penalty 
Inflation Adjustments for 2022, Pursuant to the Federal Civil 
Penalties Inflation Adjustment Act Improvements Act of 2015, Off. of 
Mgmt. & Budget (Dec. 15, 2021), available at https://www.whitehouse.gov/wp-content/uploads/2021/12/M-22-07.pdf.
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B. Regulatory Flexibility Act

    Because no notice of proposed rulemaking is required, the 
Regulatory Flexibility Act does not require an initial or final 
regulatory flexibility analysis.\21\
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    \21\ 5 U.S.C. 603(a), 604(a).

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[[Page 2316]]

C. Paperwork Reduction Act

    The Bureau has determined that this final rule does not impose any 
new or revise any existing recordkeeping, reporting, or disclosure 
requirements on covered entities or members of the public that would be 
collections of information requiring approval by the Office of 
Management and Budget under the Paperwork Reduction Act.\22\
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    \22\ 44 U.S.C. 3501-3521.
---------------------------------------------------------------------------

D. Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.), 
the Bureau will submit a report containing this rule and other required 
information to the United States Senate, the United States House of 
Representatives, and the Comptroller General of the United States prior 
to the rule taking effect. The Office of Information and Regulatory 
Affairs (OIRA) has designated this rule as not a ``major rule'' as 
defined by 5 U.S.C. 804(2).

IV. Signing Authority

    The Associate Director for Research, Markets and Regulations, Janis 
K. Pappalardo, having reviewed and approved this document, is 
delegating the authority to electronically sign this document to Laura 
Galban, a Bureau Federal Register Liaison, for purposes of publication 
in the Federal Register.

List of Subjects in 12 CFR Part 1083

    Administrative practice and procedure, Consumer protection, 
Penalties.

Authority and Issuance

    For the reasons set forth in the preamble, the Bureau amends 12 CFR 
part 1083, as set forth below:

PART 1083--CIVIL PENALTY ADJUSTMENTS

0
1. The authority citation for part 1083 continues to read as follows:

    Authority: 12 U.S.C. 2609(d); 12 U.S.C. 5113(d)(2); 12 U.S.C. 
5565(c); 15 U.S.C. 1639e(k); 15 U.S.C. 1717a(a); 28 U.S.C. 2461 
note.


0
2. Section 1083.1 is revised to read as follows:


Sec.  1083.1  Adjustment of civil penalty amounts.

    (a) The maximum amount of each civil penalty within the 
jurisdiction of the Consumer Financial Protection Bureau to impose is 
adjusted in accordance with the Federal Civil Penalties Inflation 
Adjustment Act of 1990, as amended by the Debt Collection Improvement 
Act of 1996 and further amended by the Federal Civil Penalties 
Inflation Adjustment Act Improvements Act of 2015 (28 U.S.C. 2461 
note), as follows:

                        Table 1 to Paragraph (a)
------------------------------------------------------------------------
                                                             Adjusted
                Law                  Penalty description   maximum civil
                                                          penalty amount
------------------------------------------------------------------------
12 U.S.C. 5565(c)(2)(A)...........  Tier 1 penalty......          $6,323
12 U.S.C. 5565(c)(2)(B)...........  Tier 2 penalty......          31,616
12 U.S.C. 5565(c)(2)(C)...........  Tier 3 penalty......       1,264,622
15 U.S.C. 1717a(a)(2).............  Per violation.......           2,203
15 U.S.C. 1717a(a)(2).............  Annual cap..........       2,202,123
12 U.S.C. 2609(d)(1)..............  Per failure.........             103
12 U.S.C. 2609(d)(1)..............  Annual cap..........         207,183
12 U.S.C. 2609(d)(2)(A)...........  Per failure, where               207
                                     intentional.
12 U.S.C. 5113(d)(2)..............  Per violation.......          31,928
15 U.S.C. 1639e(k)(1).............  First violation.....          12,647
15 U.S.C. 1639e(k)(2).............  Subsequent                    25,293
                                     violations.
------------------------------------------------------------------------

    (b) The adjustments in paragraph (a) of this section shall apply to 
civil penalties assessed after January 15, 2022, whose associated 
violations occurred on or after November 2, 2015.

Laura Galban,
Federal Register Liaison, Bureau of Consumer Financial Protection.
[FR Doc. 2022-00672 Filed 1-13-22; 8:45 am]
BILLING CODE 4810-AM-P


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