Home » CFPB » CFPB Announces 2022 Increases to Maximum Amount of Civil Penalties
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 |
Donald Maurice
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 New York City Bar Association's Consumer Affairs Committee. From 2014 to 2017, he chaired the ABA's Bankruptcy and Debt Collection Subcommittee. For more information, see https://mauricewutscher.com/attorneys/donald-maurice/
Published in CFPB, Compliance Management, Consumer Financial Services Law and Federal Regulation
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