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CFPB Announces 2023 Increases to Maximum Amount of Civil Penalties

civil penaltiesThe Consumer Financial Protection Bureau increased the maximum civil penalty it can impose within its jurisdiction after Jan. 15, 2023. 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, 2023.

The adjustments are based on the percentage by which the Consumer Price Index for all-urban consumers for October 2022 exceeded the CPI for October 2021. Due to inflationary pressures, this year’s adjustments, like last year’s, are more significant than in the past.

The adjusted penalties are as follows:

Law

Penalty description

Penalty amounts established under 2022 final rule

New penalty amount

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

Tier 1 penalty

$6,323

$6,813

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

Tier 2 penalty

31,616

34,064

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

Tier 3 penalty

1,264,622

1,362,567

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

Per violation

2,203

2,374

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

Annual cap

2,202,123

2,372,677

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

Per failure

103

111

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

Annual cap

207,183

223,229 

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

Per failure, where intentional

207

223

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

Per violation

31,928

34,401

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

First violation

12,647

13,627

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

Subsequent violations

25,293

27,252

 

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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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