The Consumer Financial Protection Bureau increased the maximum civil penalty it can impose within its jurisdiction after Jan. 15, 2022. The increases are mandated by federal law, which requires agencies to adjust for inflation each civil monetary penalty within an agency’s jurisdiction by Jan. 15, 2022. The adjustments are based on the percentage by which the Consumer Price Index for all-urban consumers for October 2021 exceeded the CPI for October 2020. Due to inflationary pressures, this year’s adjustments are larger than those observed in the past.
The adjusted penalties are as follows:
|
Law |
Penalty description |
Penalty amounts established under 2021 final rule |
New penalty amount |
|
Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(A) |
Tier 1 penalty |
$5,953 |
$6,323 |
|
Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(B) |
Tier 2 penalty |
29,764 |
31,616 |
|
Consumer Financial Protection Act, 12 U.S.C. 5565(c)(2)(C) |
Tier 3 penalty |
1,190,546 |
1,264,622 |
|
Interstate Land Sales Full Disclosure Act, 15 U.S.C. 1717a(a)(2) |
Per violation |
2,074 |
2,203 |
|
Interstate Land Sales Full Disclosure Act, 15 U.S.C. 1717a(a)(2) |
Annual cap |
2,073,133 |
2,202,123 |
|
Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(1) |
Per failure |
97 |
103 |
|
Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(1) |
Annual cap |
195,047 |
207,183 |
|
Real Estate Settlement Procedures Act, 12 U.S.C. 2609(d)(2)(A) |
Per failure, where intentional |
195 |
207 |
|
SAFE Act, 12 U.S.C. 5113(d)(2) |
Per violation |
30,058 |
31,928 |
|
Truth in Lending Act, 15 U.S.C. 1639e(k)(1) |
First violation |
11,906 |
12,647 |
|
Truth in Lending Act, 15 U.S.C. 1639e(k)(2) |
Subsequent violations |
23,811 |
25,293 |
