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CFPB Announces 2021 Increases to Maximum Amount of Civil Penalties

cfpb civil monetary penaltyThe Consumer Financial Protection Bureau increased the maximum civil penalty it can impose within its jurisdiction after Jan. 15, 2021. The increases are required by federal law, which requires agencies to adjust for inflation each civil monetary penalty within an agency’s jurisdiction by Jan. 15.

The adjusted penalties are as follows:

Law

Penalty description

Penalty amounts established under 2020 final rule

New penalty amount

Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(A)

Tier 1 penalty

$5,883

$5,953

Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(B)

Tier 2 penalty

29,416

29,764

Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(C)

Tier 3 penalty

1,176,638

1,190,546

Interstate Land Sales Full Disclosure Act, 15 U.S.C. 1717a(a)(2)

Per violation

2,050

2,074

Interstate Land Sales Full Disclosure Act, 15 U.S.C. 1717a(a)(2)

Annual cap

2,048,915

2,073,133

Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(1)

Per failure

96

97

Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(1)

Annual cap

192,768

195,047

Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(2)(A)

Per failure, where intentional

193

195

SAFE Act, 12 U.S.C. 5113(d)(2)

Per violation

29,707

30,058

Truth in Lending Act, 15 U.S.C. 1639e(k)(1)

First violation

11,767

11,906

Truth in Lending Act, 15 U.S.C. 1639e(k)(2)

Subsequent violations

23,533

23,811

 

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Donald Maurice provides counsel to the financial services industry, successfully litigating matters in the state and federal courts in individual and class actions. He has successfully argued before the Third, Fourth and Eighth Circuit U.S. Courts of Appeals, and has represented the financial services industry before several courts including as counsel for amicus curiae before the United States Supreme Court. He counsels clients in regulatory actions before the CFPB, and other federal and state regulators and in the development and testing of debt collection compliance systems. Don is peer-rated AV by Martindale-Hubbell, the worldwide guide to lawyers. In addition to being a frequent speaker and author on consumer financial services law, he serves as outside counsel to RMA International, on the governing Board of Regents of the American College of Consumer Financial Services Lawyers and on the Governing Committee of the Conference on Consumer Finance Law. From 2014 to 2017, he chaired the ABA's Bankruptcy and Debt Collection Subcommittee. For more information, see https://mauricewutscher.com/attorneys/donald-maurice/

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