Civil Penalty Inflation Adjustments, 1355-1357 [2025-00167]
Download as PDF
<![CDATA[
1355
Rules and Regulations
Federal Register
Vol. 90, No. 5
Wednesday, January 8, 2025
This section of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, most of which
are keyed to and codified in the Code of
Federal Regulations, which is published under
50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by
the Superintendent of Documents.
CONSUMER FINANCIAL PROTECTION
BUREAU
12 CFR Part 1083
Civil Penalty Inflation Adjustments
Consumer Financial Protection
Bureau.
ACTION: Final rule.
AGENCY:
The Consumer Financial
Protection Bureau (CFPB) is adjusting
for inflation the maximum amount of
each civil penalty within the CFPB’s
jurisdiction. These adjustments are
required by the Federal Civil Penalties
Inflation Adjustment Act of 1990
(Inflation Adjustment Act), 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. 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, 2025.
FOR FURTHER INFORMATION CONTACT:
George Karithanom, Regulatory
Implementation & Guidance Program
Analyst, Office of Regulations, at (202)
435–7700 or at: https://reginquiries.
consumerfinance.gov. If you require this
document in an alternative electronic
format, please contact CFPB_
Accessibility@cfpb.gov.
SUPPLEMENTARY INFORMATION:
SUMMARY:
I. Background
The Inflation Adjustment Act,1 as
amended by the Debt Collection
Improvement Act of 1996 2 and further
lotter on DSK11XQN23PROD with RULES1
1 Public
Law 101–410, 104 Stat. 890.
Law 104–134, sec. 31001(s)(1), 110 Stat.
1321, 1321–373.
2 Public
VerDate Sep<11>2014
15:49 Jan 07, 2025
Jkt 265001
amended by the Federal Civil Penalties
Inflation Adjustment Act Improvements
Act of 2015,3 directs Federal agencies to
adjust the civil penalty amounts within
their jurisdictions for inflation 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 CFPB published its interim
final rule (IFR) to make the initial catchup adjustments to civil penalties within
the CFPB’s jurisdiction.5 The June 2016
IFR created a new part 1083 and in part
1083.1 established the inflation-adjusted
maximum amounts for each civil
penalty within the CFPB’s jurisdiction.6
The CFPB 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 CFPB annually adjusted its
civil penalty amounts, as required by
the Act.9
3 Public
Law 114–74, sec. 701, 129 Stat. 584, 599.
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 CFPB
was not obligated to solicit comment for the interim
final rule, the CFPB invited public comment and
received none.
6 See 12 CFR 1083.1.
7 84 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, Director,
Implementation of Penalty Inflation Adjustments
for 2025, Pursuant to the Federal Civil Penalties
Inflation Adjustment Act Improvements Act of
2015, Off. of Mgmt. & Budget (Dec. 17, 2024),
https://www.whitehouse.gov/wp-content/uploads/
2024/12/M-25-02.pdf [hereinafter Young Memo].
9 See 82 FR 3601 (Jan. 12, 2017); 83 FR 1525 (Jan.
12, 2018); 84 FR 517 (Jan. 31, 2019); 85 FR 2012
4 Section
PO 00000
Frm 00001
Fmt 4700
Sfmt 4700
Specifically, the Inflation Adjustment
Act directs Federal agencies to adjust
annually each civil penalty provided by
law within the jurisdiction of each
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 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
For the 2025 annual adjustment, the
multiplier reflecting the ‘‘cost-of-living
adjustment’’ is 1.02598.
II. Adjustment
Pursuant to the Inflation Adjustment
Act and OMB Guidance, the CFPB
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, 2025, are as
follows:
(Jan. 14, 2020); 86 FR 3767 (Jan. 15, 2021); 87 FR
2314 (Jan. 14, 2022); 88 FR 1 (Jan. 3, 2023); 89 FR
1787 (Jan. 11, 2024).
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 Young Memo.
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.
E:\FR\FM\08JAR1.SGM
08JAR1
1356
Federal Register / Vol. 90, No. 5 / Wednesday, January 8, 2025 / Rules and Regulations
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) ...
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
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) .....................................
III. Procedural Requirements
lotter on DSK11XQN23PROD with RULES1
A. Administrative Procedure Act
Under the APA, notice and
opportunity for public comment are not
required if the CFPB finds that notice
and public comment are impracticable,
unnecessary, or contrary to the public
interest.16 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,17 and OMB
Guidance reaffirms that agencies need
not complete a notice-and-comment
process before making the annual
adjustments for inflation.18 For these
reasons, the CFPB 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.19 At minimum, the CFPB
believes the annual adjustments to the
civil penalty amounts in § 1083.1(a) fall
under the third exception to section
553(d). The CFPB finds that there is
good cause to make the amendments
effective on January 15, 2025. The
15 Numbers may not multiply to totals shown
because of rounding.
16 5 U.S.C. 553(b)(B).
17 Inflation Adjustment Act section 4, codified at
28 U.S.C. 2461 note.
VerDate Sep<11>2014
15:49 Jan 07, 2025
Jkt 265001
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,20 and OMB Guidance
reaffirms that agencies need not provide
a delay in effective date for the annual
adjustments for inflation.21
B. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA)
does not apply to a rulemaking where a
general notice of proposed rulemaking
is not required.22 As noted previously,
the CFPB has determined that it is
unnecessary to publish a general notice
of proposed rulemaking for this final
rule. Accordingly, the RFA’s
requirements relating to an initial and
final regulatory flexibility analysis do
not apply.
C. Paperwork Reduction Act
In accordance with the Paperwork
Reduction Act of 1995,23 the CFPB
reviewed this final rule. The CFPB has
determined that this rule does not create
any new information collections or
substantially revise any existing
collections.
D. Congressional Review Act
Pursuant to the Congressional Review
Act (5 U.S.C. 801 et seq.), the CFPB 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
Memo.
U.S.C. 553(d).
20 Inflation Adjustment Act section 4, codified at
28 U.S.C. 2461 note.
Penalty
amounts
established
under 2024
final rule
1.02598
1.02598
1.02598
1.02598
1.02598
1.02598
1.02598
1.02598
$7,217
36,083
1,443,275
2,515
2,513,215
118
236,451
236
35,516
14,069
28,135
1.02598
1.02598
1.02598
36,439
14,435
28,866
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).
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 CFPB amends 12 CFR part
1083, as set forth below:
PART 1083—CIVIL PENALTY
ADJUSTMENTS
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.
2. Section 1083.1 is revised to read as
follows:
■
§ 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:
21 Young
19 5
22 5
Frm 00002
Fmt 4700
Sfmt 4700
New
penalty
amount 15
$7,034
35,169
1,406,728
2,451
2,449,575
115
230,464
230
18 Young
PO 00000
OMB
‘‘cost-of-living
adjustment’’
multiplier
Memo.
U.S.C. 603(a), 604(a).
23 44 U.S.C. 3506; 5 CFR part 1320.
E:\FR\FM\08JAR1.SGM
08JAR1
1357
Federal Register / Vol. 90, No. 5 / Wednesday, January 8, 2025 / Rules and Regulations
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.
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) ............................................................
(b) The adjustments in paragraph (a)
of this section shall apply to civil
penalties assessed after January 15,
2025, whose associated violations
occurred on or after November 2, 2015.
Brian Shearer,
Assistant Director, Office of Policy Planning
and Strategy, Consumer Financial Protection
Bureau.
[FR Doc. 2025–00167 Filed 1–7–25; 8:45 am]
BILLING CODE 4810–AM–P
DEPARTMENT OF TRANSPORTATION
Federal Aviation Administration
14 CFR Part 39
[Docket No. FAA–2024–2021; Project
Identifier AD–2023–01077–T; Amendment
39–22905; AD 2024–25–03]
RIN 2120–AA64
Airworthiness Directives; Gulfstream
Aerospace Corporation Airplanes
Federal Aviation
Administration (FAA), DOT.
ACTION: Final rule.
AGENCY:
The FAA is adopting a new
airworthiness directive (AD) for certain
Gulfstream Aerospace Corporation
Model GVII–G500 and GVII–G600
airplanes. This AD was prompted by a
report of cracking in the electrical
grounding receptacles located on the left
and right wings. This AD requires
inspecting the electrical grounding
receptacles for cracks and corrosion,
performing applicable on-condition
actions, and sealing over the grounding
receptacles on the top of the wings to
permanently disable the receptacle. The
FAA is issuing this AD to address the
unsafe condition on these products.
DATES: This AD is effective February 12,
2025.
The Director of the Federal Register
approved the incorporation by reference
lotter on DSK11XQN23PROD with RULES1
SUMMARY:
VerDate Sep<11>2014
15:49 Jan 07, 2025
Adjusted
maximum civil
penalty amount
Penalty description
Jkt 265001
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 ............................................................
$7,217
36,083
1,443,275
2,515
2,513,215
118
236,451
236
36,439
14,435
28,866
of certain publications listed in this AD
as of February 12, 2025.
ADDRESSES:
AD Docket: You may examine the AD
docket at regulations.gov under Docket
No. FAA–2024–2021; or in person at
Docket Operations between 9 a.m. and
5 p.m., Monday through Friday, except
Federal holidays. The AD docket
contains this final rule, any comments
received, and other information. The
address for Docket Operations is U.S.
Department of Transportation, Docket
Operations, M–30, West Building
Ground Floor, Room W12–140, 1200
New Jersey Avenue SE, Washington, DC
20590.
Material Incorporated by Reference:
• For Gulfstream material identified
in this AD, contact Gulfstream
Aerospace Corporation, Technical
Publications Dept., P.O. Box 2206,
Savannah, GA 31402–2206; telephone
800–810–4853; email pubs@
gulfstream.com; website
gulfstream.com/en/customer-support.
• You may view this material at the
FAA, Airworthiness Products Section,
Operational Safety Branch, 2200 South
216th St., Des Moines, WA. For
information on the availability of this
material at the FAA, call 206–231–3195.
It is also available at regulations.gov
under Docket No. FAA–2024–2021.
FOR FURTHER INFORMATION CONTACT:
Brandon Ellis, Aviation Safety Engineer,
FAA, 1701 Columbia Avenue, College
Park, GA 30337; phone: 404–474–5535;
email: 9-ASO-ATLACO-ADs@faa.gov.
SUPPLEMENTARY INFORMATION:
cracking in the electrical grounding
receptacles located on the left and right
wings. In the NPRM, the FAA proposed
to require inspecting the electrical
grounding receptacles for cracks and
corrosion, performing applicable oncondition actions, and sealing over the
grounding receptacles on the top of the
wings to permanently disable the
receptacle. The FAA is issuing this AD
to address cracks and corrosion of the
electrical grounding receptacles. The
unsafe condition, if not addressed,
could result in fuel leaking from the
electrical grounding receptacles.
Background
The FAA issued a notice of proposed
rulemaking (NPRM) to amend 14 CFR
part 39 by adding an AD that would
apply to certain Gulfstream Aerospace
Corporation Model GVII–G500 and
GVII–G600 airplanes. The NPRM
published in the Federal Register on
August 22, 2024 (89 FR 67913). The
NPRM was prompted by a report of
The FAA reviewed Gulfstream GVII–
G500 Customer Bulletin No. 089, dated
November 28, 2023; and Gulfstream
GVII–G600 Customer Bulletin No. 058,
dated November 28, 2023. This material
specifies procedures for the following
actions:
• Borescope inspections for cracking
and corrosion of the interior walls of the
grounding receptacle casing.
PO 00000
Frm 00003
Fmt 4700
Sfmt 4700
Discussion of Final Airworthiness
Directive
Comments
The FAA received comments from an
individual and three anonymous
commenters who supported the NPRM
without change.
Conclusion
The FAA reviewed the relevant data,
considered any comments received, and
determined that air safety requires
adopting this AD as proposed.
Accordingly, the FAA is issuing this AD
to address the unsafe condition on these
products. Except for minor editorial
changes, this AD is adopted as proposed
in the NPRM. None of the changes will
increase the economic burden on any
operator.
Material Incorporated by Reference
Under 1 CFR Part 51
E:\FR\FM\08JAR1.SGM
08JAR1
]]>Agencies
- CONSUMER FINANCIAL PROTECTION BUREAU
[Federal Register Volume 90, Number 5 (Wednesday, January 8, 2025)]
[Rules and Regulations]
[Pages 1355-1357]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2025-00167]
========================================================================
Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
under 50 titles pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations is sold by the Superintendent of Documents.
========================================================================
Federal Register / Vol. 90, No. 5 / Wednesday, January 8, 2025 /
Rules and Regulations
[[Page 1355]]
CONSUMER FINANCIAL PROTECTION BUREAU
12 CFR Part 1083
Civil Penalty Inflation Adjustments
AGENCY: Consumer Financial Protection Bureau.
ACTION: Final rule.
-----------------------------------------------------------------------
SUMMARY: The Consumer Financial Protection Bureau (CFPB) is adjusting
for inflation the maximum amount of each civil penalty within the
CFPB's jurisdiction. These adjustments are required by the Federal
Civil Penalties Inflation Adjustment Act of 1990 (Inflation Adjustment
Act), 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. 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, 2025.
FOR FURTHER INFORMATION CONTACT: George Karithanom, Regulatory
Implementation & Guidance Program Analyst, Office of Regulations, at
(202) 435-7700 or at: https://reginquiries.consumerfinance.gov. If you
require this document in an alternative electronic format, please
contact [email protected].
SUPPLEMENTARY INFORMATION:
I. Background
The Inflation Adjustment Act,\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,\3\ directs
Federal agencies to adjust the civil penalty amounts within their
jurisdictions for inflation 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 CFPB published its interim final rule (IFR) to make the initial
catch-up adjustments to civil penalties within the CFPB's
jurisdiction.\5\ The June 2016 IFR created a new part 1083 and in part
1083.1 established the inflation-adjusted maximum amounts for each
civil penalty within the CFPB's jurisdiction.\6\ The CFPB finalized the
IFR on January 31, 2019.\7\
---------------------------------------------------------------------------
\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 CFPB was not
obligated to solicit comment for the interim final rule, the CFPB
invited public comment and received none.
\6\ See 12 CFR 1083.1.
\7\ 84 FR 517 (Jan. 31, 2019).
---------------------------------------------------------------------------
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 CFPB
annually adjusted its civil penalty amounts, as required by the Act.\9\
---------------------------------------------------------------------------
\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,
Director, Implementation of Penalty Inflation Adjustments for 2025,
Pursuant to the Federal Civil Penalties Inflation Adjustment Act
Improvements Act of 2015, Off. of Mgmt. & Budget (Dec. 17, 2024),
https://www.whitehouse.gov/wp-content/uploads/2024/12/M-25-02.pdf
[hereinafter Young Memo].
\9\ See 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); 87 FR 2314 (Jan. 14, 2022); 88 FR 1 (Jan. 3, 2023);
89 FR 1787 (Jan. 11, 2024).
---------------------------------------------------------------------------
Specifically, the Inflation Adjustment Act directs Federal agencies
to adjust annually each civil penalty provided by law within the
jurisdiction of each 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 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\
---------------------------------------------------------------------------
\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 Young Memo.
\13\ See Inflation Adjustment Act section 2, codified at 28
U.S.C. 2461 note.
---------------------------------------------------------------------------
For the 2025 annual adjustment, the multiplier reflecting the
``cost-of-living adjustment'' is 1.02598.
II. Adjustment
Pursuant to the Inflation Adjustment Act and OMB Guidance, the CFPB
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, 2025, are as follows:
---------------------------------------------------------------------------
\14\ Inflation Adjustment Act section 4, codified at 28 U.S.C.
2461 note.
[[Page 1356]]
----------------------------------------------------------------------------------------------------------------
Penalty
amounts OMB ``cost-of-
Law Penalty description established living New penalty
under 2024 adjustment'' amount \15\
final rule multiplier
----------------------------------------------------------------------------------------------------------------
Consumer Financial Protection Act, 12 Tier 1 penalty.......... $7,034 1.02598 $7,217
U.S.C. 5565(c)(2)(A).
Consumer Financial Protection Act, 12 Tier 2 penalty.......... 35,169 1.02598 36,083
U.S.C. 5565(c)(2)(B).
Consumer Financial Protection Act, 12 Tier 3 penalty.......... 1,406,728 1.02598 1,443,275
U.S.C. 5565(c)(2)(C).
Interstate Land Sales Full Disclosure Per violation........... 2,451 1.02598 2,515
Act, 15 U.S.C. 1717a(a)(2).
Interstate Land Sales Full Disclosure Annual cap.............. 2,449,575 1.02598 2,513,215
Act, 15 U.S.C. 1717a(a)(2).
Real Estate Settlement Procedures Act, Per failure............. 115 1.02598 118
12 U.S.C. 2609(d)(1).
Real Estate Settlement Procedures Act, Annual cap.............. 230,464 1.02598 236,451
12 U.S.C. 2609(d)(1).
Real Estate Settlement Procedures Act, Per failure, where 230 1.02598 236
12 U.S.C. 2609(d)(2)(A). intentional.
SAFE Act, 12 U.S.C. 5113(d)(2)........ Per violation........... 35,516 1.02598 36,439
Truth in Lending Act, 15 U.S.C. First violation......... 14,069 1.02598 14,435
1639e(k)(1).
Truth in Lending Act, 15 U.S.C. Subsequent violations... 28,135 1.02598 28,866
1639e(k)(2).
----------------------------------------------------------------------------------------------------------------
III. Procedural Requirements
---------------------------------------------------------------------------
\15\ Numbers may not multiply to totals shown because of
rounding.
---------------------------------------------------------------------------
A. Administrative Procedure Act
Under the APA, notice and opportunity for public comment are not
required if the CFPB finds that notice and public comment are
impracticable, unnecessary, or contrary to the public interest.\16\ 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,\17\ and OMB Guidance reaffirms that agencies need not complete a
notice-and-comment process before making the annual adjustments for
inflation.\18\ For these reasons, the CFPB 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.
---------------------------------------------------------------------------
\16\ 5 U.S.C. 553(b)(B).
\17\ Inflation Adjustment Act section 4, codified at 28 U.S.C.
2461 note.
\18\ Young Memo.
---------------------------------------------------------------------------
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.\19\ At minimum, the CFPB believes the annual adjustments
to the civil penalty amounts in Sec. 1083.1(a) fall under the third
exception to section 553(d). The CFPB finds that there is good cause to
make the amendments effective on January 15, 2025. 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,\20\ and OMB Guidance reaffirms that agencies need not provide a
delay in effective date for the annual adjustments for inflation.\21\
---------------------------------------------------------------------------
\19\ 5 U.S.C. 553(d).
\20\ Inflation Adjustment Act section 4, codified at 28 U.S.C.
2461 note.
\21\ Young Memo.
---------------------------------------------------------------------------
B. Regulatory Flexibility Act
The Regulatory Flexibility Act (RFA) does not apply to a rulemaking
where a general notice of proposed rulemaking is not required.\22\ As
noted previously, the CFPB has determined that it is unnecessary to
publish a general notice of proposed rulemaking for this final rule.
Accordingly, the RFA's requirements relating to an initial and final
regulatory flexibility analysis do not apply.
---------------------------------------------------------------------------
\22\ 5 U.S.C. 603(a), 604(a).
---------------------------------------------------------------------------
C. Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995,\23\ the
CFPB reviewed this final rule. The CFPB has determined that this rule
does not create any new information collections or substantially revise
any existing collections.
---------------------------------------------------------------------------
\23\ 44 U.S.C. 3506; 5 CFR part 1320.
---------------------------------------------------------------------------
D. Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801 et seq.),
the CFPB 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).
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 CFPB 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:
[[Page 1357]]
Table 1 to Paragraph (a)
------------------------------------------------------------------------
Adjusted maximum
Law Penalty civil penalty
description amount
------------------------------------------------------------------------
12 U.S.C. 5565(c)(2)(A)......... Tier 1 penalty.... $7,217
12 U.S.C. 5565(c)(2)(B)......... Tier 2 penalty.... 36,083
12 U.S.C. 5565(c)(2)(C)......... Tier 3 penalty.... 1,443,275
15 U.S.C. 1717a(a)(2)........... Per violation..... 2,515
15 U.S.C. 1717a(a)(2)........... Annual cap........ 2,513,215
12 U.S.C. 2609(d)(1)............ Per failure....... 118
12 U.S.C. 2609(d)(1)............ Annual cap........ 236,451
12 U.S.C. 2609(d)(2)(A)......... Per failure, where 236
intentional.
12 U.S.C. 5113(d)(2)............ Per violation..... 36,439
15 U.S.C. 1639e(k)(1)........... First violation... 14,435
15 U.S.C. 1639e(k)(2)........... Subsequent 28,866
violations.
------------------------------------------------------------------------
(b) The adjustments in paragraph (a) of this section shall apply to
civil penalties assessed after January 15, 2025, whose associated
violations occurred on or after November 2, 2015.
Brian Shearer,
Assistant Director, Office of Policy Planning and Strategy, Consumer
Financial Protection Bureau.
[FR Doc. 2025-00167 Filed 1-7-25; 8:45 am]
BILLING CODE 4810-AM-P
